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30
Years ended March 31, 2010 and 2009
Notes to Consolidated Financial Statements
Note 3. Changes in Accounting Policies
A. Accounting Standard for Financial Instruments
Effective as of the fiscal year ended March 31, 2010, the “Accounting Standard for Financial Instruments” (Accounting Standards
Board of Japan Statement No.10 dated January 22, 1999 and its last amendment was March 10, 2008) and “Guidance on
Disclosures about Fair Value of Financial Instruments” (Accounting Standards Board of Japan Guidance No.19 dated March 10,
2008) have been adopted.
There is no impact on ordinary income or income before income taxes and minority interests.
B. Investment Securities
Unrealized gains or losses on other investment securities for which market quotations are available had been accounted for using
the partial net asset recording method. Effective as of the fiscal year ended March 31, 2010, in order to improve comparability with
other companies, the accounting method has been changed to the whole net asset recording method. The impact of this change
increases ordinary income and income before income taxes and minority interests in income by ¥4,966 million ($53,408 thousand)
and ¥2,669 million ($28,704 thousand), respectively, compared to the previous method.
C. Provision for Retirement Benefits
Effective as of the fiscal year ended March 31, 2010, the “Partial Amendments to Accounting Standard for Retirement Benefits
(Part 3)” (Accounting Standards Board of Japan Statement No.19 dated July 31, 2008) has been adopted.
The impact on operating income, ordinary income and income before income taxes and minority interests is minor.
D. 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.
E. 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 on 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).
F. 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.