Nintendo 2012 Annual Report Download - page 34

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30
Notes to Consolidated Financial Statements
Note 3. Changes in Description
A. Consolidated Balance Sheets
Effective as of the consolidated accounting period ended March 31, 2012, “Finished goods,” “Work in process” and “Raw
materials and supplies,” individually described in the 2011 accompanying consolidated balance sheet, have been described in a
lump as “Inventories” in order to be consistent with the other reports issued for the consolidated accounting period ended March
31, 2012. Amounts of “Finished goods,” “Work in process” and “Raw materials and supplies” are presented in the following
“Note 5. Note to Consolidated Balance Sheets.”
B. Consolidated Statements of Cash Flows
Effective as of the consolidated accounting period ended March 31, 2012, “Purchase of short-term investment securities“ and
“Purchase of investment securities,” individually described in the 2011 accompanying consolidated statements of cash flows, have
been described in the net cash provided by (used in) investing activities as “Purchase of short-term and long term investment
securities“ in order to describe the actual transaction simply and more appropriately. “Purchase of short-term investment
securities“ and “Purchase of investment securities” in the 2011 accompanying consolidated statements of cash flows were
¥613,423 million and ¥13,468 million respectively.
Effective as of the consolidated accounting period ended March 31, 2012, “Proceeds from sales and redemption of securities”
individually described, and “Proceeds from sales and redemption of investment securities” included in “Other” in the 2011
accompanying consolidated statements of cash flows, have been described in the net cash provided by (used in) investing
activities as “Purchase of short-term and long term investment securities“ in order to describe the actual transaction simply and
more appropriately. “Proceeds from sales and redemption of securities,” and “Proceeds from sales and redemption of investment
securities” included in “Other” in the 2011 accompanying consolidated statements of cash flows were ¥476,912 million and ¥28
million respectively.
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.
Prior service cost and actuarial calculation differences are processed collectively in the accrued year.
As for the Company’s defined benefit corporate pension plan, the reserve for employees' retirement and severance benefits are
booked as prepaid pension costs in “Other“ in “Investments and other assets“ as the Company's plan assets exceeded the
projected benefit obligation during the consolidated accounting period for the year ended March 31, 2012.
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. 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.
L. 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.
M. Accounting for Consumption Taxes
Consumption taxes are recorded as assets or liabilities when they are paid or received.