Trend Micro 2014 Annual Report Download - page 28

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account receivable, allowance
for bad debt is provided. The
amount is determined using the
percentage based on actual
doubtful account loss against
total of debts. As for high-risk
receivables, expected
unrecoverable amount is
considered individually.
B. Allowance for bonuses
Bonuses for employees are
provided at an estimate of the
amount.
B. Allowance for bonuses
Same as left
C. Allowance for sales returns
In order to reserve future
losses from sales return
subsequent to the fiscal year
end, allowance for sales return
is provided based on the past
experience in the sales return.
C. Allowance for sales returns
Same as left
(4) Accounting methods for
retirement benefit
obligation
In calulating the retirement
benefit obligation, the expected
retirement benefits are
attributed to the periods by
straight-line basis.
Actuarial gains and losses and
past service costs are expensed
in a certain period less than
average future service years of
employees of the year (1-23
years).
(5) Translation of foreign
currencies
Foreign currency denominated
receivables and payables are
translated into Japanese yen at
period-end rates of exchange and
the resulting translation gains
or losses are taken into current
income.
All asset and liability accounts
of foreign subsidiaries are
translated into Japanese yen at
Same as left
25
Allowance for retirement
benefits
In order to reserve future
losses arising from retirement
of employees, allowance for
retirement benefits is provided
based on retirement benefit
liabilities projected and
pension asset projected at the
end of the period. Actuarial
gains and losses are expensed in
a certain period less than
average future service years of
employees of the year (1-23
years).