Nintendo 2012 Annual Report Download - page 33

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29
B. Securities and Derivatives
Securities
Held-to-maturity debt securities are stated using amortized cost method on a straight-line basis. Other investment securities for
which market quotations are available are stated at fair value at the balance sheet date. Unrealized gains and losses on other
investment securities are recorded as “Valuation difference on available-for-sale securities“ in “Net assets“ at the net-of-tax
amount. The cost of investment securities sold is determined based on the moving average cost.
Other investment securities for which market quotations are unavailable are stated at cost, determined by the moving average
method.
Derivatives
Derivatives are stated at fair value.
C. Inventories
Finished goods, work in process and raw materials and supplies are mainly measured by means of the cost method based on the
moving average method, which evaluates the amount of the inventories shown on the balance sheet by the write-down of
inventories due to decreased profitability of assets.
D. Property, Plant and Equipment
The Company and its domestic consolidated subsidiaries compute depreciation by the declining balance method over the
estimated useful lives except for certain tools, furniture and fixtures depreciated over the economic useful lives. The straight-line
basis of depreciation is used for buildings, except for structures, acquired on or after April 1, 1998. Overseas consolidated
subsidiaries compute depreciation by applying the straight-line basis over the period of estimated useful lives. Estimated useful
lives of “Buildings and structures,“ one of the principal assets, are 3 to 60 years.
Leased assets are excluded from property, plant and equipment.
E. Intangible Assets
Amortization of intangible assets, except for computer software for internal use, is computed by the straight-line basis over the
estimated useful lives. Amortization of computer software for internal use is computed by the straight-line basis over the estimated
internal useful lives of mainly five years.
Leased assets are excluded from intangible assets.
F. Leased Assets
Leased assets related to finance lease transactions that do not transfer ownership are depreciated on a straight-line basis, with
the lease periods used as their useful lives and no residual value.
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.