Nintendo 2010 Annual Report Download - page 33

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29
G. Allowance for Doubtful Accounts
The Company and its domestic consolidated subsidiaries provide the allowance for doubtful accounts based on the historical
analysis of loss experience and the evaluation of uncollectible amount on individual doubtful accounts. Overseas consolidated
subsidiaries provide the allowance for doubtful accounts based on the evaluation of uncollectible amount on individual accounts.
H. Provision for Bonuses
The Company and certain consolidated subsidiaries provide the reserve for the estimated amount of bonuses to be paid to the
employees.
I. Provision for Retirement Benefits
The Company and certain consolidated subsidiaries provide the reserve for employees’ retirement and severance benefits based
on the projected benefit obligation and plan assets at the end of fiscal year.
Actuarial calculation differences are processed collectively, in the accrued year, for the year ended March 31, 2010 and prior
service cost and actuarial calculation differences are processed collectively, in the accrued year, for the year ended March 31, 2009.
J. Translation of Foreign Currency Items
All the monetary receivables and payables of the Company and its domestic consolidated subsidiaries denominated in foreign
currencies are translated into Japanese yen at the exchange rate in effect at the respective balance sheet dates. The foreign
exchange gains and losses from translation are recognized in the accompanying consolidated statements of income.
With respect to financial statements of overseas subsidiaries, the balance sheet accounts are translated into Japanese yen at the
exchange rate of the closing date except for shareholders’ equity, which are translated at the historical rates. Revenue and expense
accounts are translated into Japanese yen at the annual average exchange rate for the fiscal period. The differences resulting from
such translations are included in “Foreign currency translation adjustment” or “Minority interests” in “Net assets.”
K. Accounting for Consumption Taxes
Consumption taxes are recorded as assets or liabilities when they are paid or received.
L. Valuation of Assets and Liabilities of Consolidated Subsidiaries
Assets and liabilities of subsidiaries are valued using the full fair value model.
M. Amortization of Goodwill
Goodwill is fully amortized by the straight-line basis over mainly five years or, in case of immaterial amount, in the same fiscal
year as incurred.
N. Cash and Cash Equivalents in Consolidated Statements of Cash Flows
“Cash and cash equivalents” include cash on hand, time deposit which can be withdrawn on demand and certain investments,
with little risk of fluctuation in value and maturity date of three months or less, which are promptly convertible to cash.