Nintendo 2010 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2010 Nintendo annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 54

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54

27
Note 2. Significant Accounting Policies
The accompanying consolidated financial statements of Nintendo Co., Ltd. (the “Company”) and its consolidated subsidiaries
are compiled from the consolidated financial statements prepared by the Company as requested by the Financial Instruments and
Exchange Act of Japan and are prepared on the basis of accounting principles and practices generally accepted in Japan, which
are different in certain respects as to application and disclosure requirements of the International Financial Reporting Standards.
The financial statements of the Company and its domestic subsidiaries are prepared on the basis of the accounting and relevant
legal requirements in Japan. The financial statements of the overseas consolidated subsidiaries are prepared on the basis of the
accounting and relevant legal requirements of their countries of domicile and no adjustment has been made to their financial
statements in consolidation to the extent that significant differences do not occur, as allowed under the generally accepted
accounting principles and practices in Japan.
As permitted by the Financial Instruments and Exchange Act of Japan, each amount of the accompanying consolidated financial
statements is rounded down to the nearest one million yen (In the case of translation into U.S. dollars, it is rounded down to the
nearest one thousand dollars). Consequently, the totals shown in the accompanying consolidated financial statements do not
necessarily agree with the sums of the individual amounts.
The consolidated financial statements presented herein are stated in Japanese yen, the currency of the country in which the
Company is incorporated and operates. The rate of ¥93 to U.S.$1, the approximate current rate of exchange on March 31, 2010,
has been applied for the purpose of presentation of the accompanying consolidated financial statements in U.S. dollars. These
amounts in U.S. dollars are included solely for convenience and should not be construed as representations that the Japanese yen
amounts actually represent, have been or could be converted into U.S. dollars at this or any other rate of exchange.
The accompanying consolidated financial statements are not intended to present the consolidated financial position, results of
operations and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions
other than Japan.
Note 1. Basis of Presenting Consolidated Financial Statements
A. Principles of Consolidation
The accompanying consolidated financial statements include the accounts of the Company and all of its 26 subsidiaries except
for one as of March 31, 2010 and 25 subsidiaries except for one as of March 31, 2009. One of the subsidiaries, Fukuei Co., Ltd, is
not only unconsolidated, but also not being accounted for under the equity method, as it is a small scale company and its impact is
not significant on the total assets, net sales, net income or loss, retained earnings and others in the consolidated financial
statements. The equity method of accounting is applied to four affiliates out of five as of March 31, 2010 and 2009. One of the
affiliates, Ape inc., is not accounted for under the equity method, as it is immaterial and its impact is not significant on net income
or loss, retained earnings and others in the consolidated financial statements. The names of all the subsidiaries and affiliates are
shown in “Corporate information” at page 47.
All the consolidated subsidiaries have adopted March 31, the closing date of the accompanying consolidated financial
statements, as their fiscal year end except for Nintendo Phuten Co., Ltd., Retro Studios, Inc., iQue Ltd. and iQue (China) Ltd. of
December 31 and MONOLITH SOFTWARE INC. of the end of February. The amounts of these subsidiaries have been included on
the basis of their fiscal periods as the differences in the closing dates are within three months prior to March 31. Besides, the
amounts of certain affiliates have been included on the basis of their fiscal periods within three months prior to March 31. Any
necessary adjustments were made to financial statements to reflect any significant transactions from their closing dates to March
31, 2010 and 2009.
Years ended March 31, 2010 and 2009
Notes to Consolidated Financial Statements