Trend Micro 2009 Annual Report Download - page 31

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33
Notes to unconsolidated financial statements
(SIGNIFICANT ACCOUNTING POLICIES)
1. Accounting for evaluation of assets
(1) Securities
Investments in subsidiaries and affiliates.
Cost basis by moving average method
Other securities
Available-for-sale with market value:
The securities are stated at the market value method based on the value at the
end of the period (Valuated differences are recognized in equity directly. Cost of
selling is determined by the moving average method.)
Available-for-sale without a market value:
Cost basis by moving average method
Investments in investment limited partnerships and equivalent partnerships
(ones considered as securities as stipulated under Article 2, Paragraph 2 of the
Financial Instruments and Exchange Act) are calculated on a net equity
partnership basis based on the latest closing statements available depending
on the financial reporting date stipulated in the partnership agreement.
(2) Inventories
Product・Raw materials・Stores ·························· Cost basis by moving average method
Unprofitable inventories are devaluated
2. Depreciation and amortization method for fixed assets
Tangible fixed assets (excluding lease assets)·························· Declining-balance method
Buildings (excluding facilities and leasehold improvement) acquired on or after
April 1, 1998 are depreciated by straight-line method.
Useful lives of the main property and equipment are as follows:
Buildings: 3 – 28 years
Office furniture and equipment: mainly 2 – 10 years
Intangibles
<Software for sale>
Straight-line method over the estimated useful lives (12 months).
<Software for internal use>
Straight-line method over the estimated useful lives (mainly 5 years).
<Other intangibles>
Straight-line method over the estimated useful lives