Nintendo 2013 Annual Report Download - page 28

Note 3. Unapplied Accounting Standard and Guidance
The “Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan Statement No.26 dated May 17,
2012) and the “Guidance on Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan Guidance No.25
dated May 17, 2012)
A. Overview
The accounting standard and guidance have been revised from the viewpoint of improvements to financial reporting and
international convergence, mainly focusing on how actuarial gains and losses and past service costs should be accounted for, how
retirement benefit obligations and current service costs should be determined, and enhancement of disclosures.
B. Date of Adoption
The accounting standard and guidance will be adopted from the end of the consolidated accounting period ending March 31,
2014, except for amendments to the determination of retirement benefit obligations and current service costs which will be
adopted from the beginning of the consolidated accounting period ending March 31, 2015.
C. Impact of Adoption
The impact of these adoptions is in the evaluation phase at the time of preparation of the accompanying consolidated financial
statements.
Consolidated Statements of Income
Effective as of the consolidated accounting period ended March 31, 2013, “Loss on redemption of securities” and “Loss on
redemption of investment securities,” included in “Other” in “Non-operating expenses” in the 2012 accompanying consolidated
statement of income, have been individually described from the perspective of materiality. In order to reflect the changes in
description, the 2012 accompanying consolidated financial statement is reclassified. As a result, ¥5,191 million of “Other” in the
2012 accompanying consolidated statement of income is reclassified to ¥2,517 million of “Loss on redemption of securities,”
¥1,180 million of “Loss on redemption of investment securities” and ¥1,493 million of “Other.”
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.
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 individual accounts of assets or liabilities when they are paid or received.
Note 4. Changes in Description
Note 5. Changes in accounting policies
that are difficult to distinguish from changes in accounting estimates
Following the revision of the Corporation Tax Act, effective the fiscal year ended March 31, 2013, the Company and its domestic
consolidated subsidiaries have computed depreciation of property, plant and equipment acquired on or after April 1, 2012 by the
method on the basis of the revised Corporation Tax Act.
Its impact is immaterial on operating loss, ordinary income and income before income taxes and minority interests.
Note 6. Note to Consolidated Balance Sheets
A. Inventories
Inventories as of March 31, 2013 and 2012 were as follows:
Finished goods
Work in process
Raw materials and supplies
¥165,137
2,008
¥11,576
¥71,034
235
¥7,175
$1,756,779
21,366
$123,152
U.S. Dollars in Thousands
$
Japanese Yen in Millions
¥
As of March 31, 2013 2012 2013
B. Accumulated Depreciation
Accumulated depreciation of property, plant and equipment as of March 31, 2013 and 2012 were as follows:
Accumulated depreciation ¥67,835 ¥57,885 $721,650
U.S. Dollars in Thousands
$
Japanese Yen in Millions
¥
As of March 31, 2013 2012 2013
C. Investment Securities
Investments in unconsolidated subsidiaries and affiliates as of March 31, 2013 and 2012 were as follows:
Investment securities ¥6,272 ¥5,300 $66,727
U.S. Dollars in Thousands
$
Japanese Yen in Millions
¥
As of March 31, 2013 2012 2013
Notes to Consolidated Financial Statements
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