Nintendo 2009 Annual Report Download - page 34

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Note 3. Changes in Accounting Policies
A. Inventories
Effective as of the fiscal year ended March 31, 2009, the “Accounting Standard for Measurement of Inventories” (Accounting
Standards Board of Japan Statement No. 9 dated July 5, 2006) has been adopted. The impact on earnings is minor.
B. Accounting standard for lease transactions
Finance lease transactions that do not transfer ownership were formerly accounted for in a similar manner with ordinary sale and
purchase transactions. Effective as of the fiscal year ended March 31, 2009, the “Accounting Standard for Lease Transactions”
(Accounting Standards Board of Japan Statement No. 13 dated June 17, 1993 and its last amendment was March 30, 2007) and
“Guidance on Accounting Standard for Lease Transactions” (Accounting Standards Board of Japan Guidance No. 16 dated January
18, 1994 and its last amendment was March 30, 2007) has been adopted.
The change in accounting method does not impact earnings.
The accounting treatment for finance lease transactions that do not transfer ownership which occurred before this new rule was
applied remains the same (in a manner similar to accounting treatment for ordinary rental transactions).
C. Practical solution on unification of accounting policies applied to foreign subsidiaries for consolidated financial
statement
Effective as of the fiscal year ended March 31, 2009, the “Practical Solution on Unification of Accounting Policies Applied to
Foreign Subsidiaries for Consolidated Financial Statements” (Accounting Standards Board of Japan Practical Issues Task Force No.
18 dated May 17, 2006) has been applied. Accordingly, some revisions are made to the consolidated accounts as necessary. The
impact on earnings is minor.
D. Depreciation Procedure for Important Depreciable Assets
Effective as of the consolidated accounting period ended March 31, 2008, the Company and its domestic subsidiaries have
changed their depreciation procedure for tangible assets, excluding certain furniture and fixtures, acquired on and after April 1,
2007 based on an amendment in corporation tax law (partial amendment in income tax law No. 6 dated March 30, 2007 and
partial amendment in income tax law enforcement order No. 83 dated March 30, 2007). The impact on earnings is minor.
As for tangible assets, excluding certain furniture and fixtures, acquired on and before March 31, 2007, 5% equivalent of
acquisition cost are equally depreciated over five years from the year after tangible assets are thoroughly depreciated to the limits
of depreciable amount, 95% equivalent of acquisition cost, determined by the Japanese tax law. The impact on earnings is minor.
Years ended March 31, 2009 and 2008
Notes to Consolidated Financial Statements
Note 4. Changes in Description
A. Consolidated Balance Sheets
As the Cabinet Office Ordinance Partially Revising Regulation for Financial Statement, etc. (Cabinet Office Ordinance No. 50
dated August 7, 2008) has been adopted, “Inventories” for the fiscal year ended March 31, 2008 were separately presented as
“Finished goods,” “Work in process” and “Raw materials and supplies,” effective from the fiscal year ended March 31, 2009.
“Inventories” for the fiscal year ended March 31, 2008 accompanying consolidated balance sheets included ¥92,617 million of
“Finished goods,” ¥200 million of “Work in process” and ¥12,023 million of “Raw materials and supplies,” respectively.
Effective as of the consolidated accounting period ended March 31, 2008, certificate of deposits shall be classified as
“Short-term investment securities,” which was previously included in “Cash and deposits,” based on amendments in “The Practical
Standard for the Accounting related to Financial Products (The Japanese Institute of Certified Public Accountants Accounting
Practice Committee Report No.14).” Certificate of deposits were ¥254,659 million as of March 31, 2008.
Effective as of the consolidated accounting period ended March 31, 2008, “Software” included in “Software etc.” in the 2007
accompanying consolidated balance sheet has been individually described from the perspective of clarity. “Software etc.” in the
2007 accompanying consolidated balance sheets included ¥454 million of “Software.”
B. Consolidated Statements of Cash Flows
Based on the amendments described at “A. Consolidated Balance Sheets” in “Note 4. Changes in Description,” with regard to
“Cash Flows from Investing Activities” in the fiscal year ended March 31, 2008, “Payments into time deposits” decreased by
¥271,098 million, whereas “Purchase of short-term investment securities” increased by the same amount. In addition, “Proceeds
from withdrawal of time deposits” decreased by ¥538,464 million, whereas “Proceeds from sales and / or redemption of short-term
investment securities” increased by the same amount.