Ubisoft 2004 Annual Report Download - page 83

Download and view the complete annual report

Please find page 83 of the 2004 Ubisoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 143

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

81
UBISOFT > 2005 FINANCIAL REPORT
2
FINANCIAL REPORT FOR THE FISCAL YEAR ENDING MARCH 31, 2005
Explanatory notes on
the corporate accounts
The following notes and tables (in which all amounts are
shown in thousands of euros) are an integral part of the
annual accounts for the fiscal year ending March 31, 2005,
and constitute an appendix to the income statement.
The fiscal year covered a period of 12 months from April 1,
2004, to March 31, 2005.
2.2.5.1 Highlights of the fiscal year
Ubisoft Entertainment SA elected to apply the optional
research tax credit and reported a tax income on its
income statement of €1,290 thousand.
The business assets were resold to the Swiss subsidiary, Ubi
Games SA, on March 31, 2005, for €1,524 thousand.
Disposal of shares
On April 26, 2004, the shares held in Ubisoft World Studios
SARL were sold to Ludimédia SAS for €200 thousand.
Following this transaction, Ludimédia SAS was renamed
Ubisoft World Studios SAS.
On July 29, 2004, the shares held in Ubisoft Marketing &
Communication SAS were sold to Ubisoft France SAS for
€350 thousand.
On January 3, 2005, the shares held in Ubi.com SA were
sold to Ubisoft EMEA SARL for €300.5 thousand.
Liquidations
On June 30, 2004, shares in Teamchman SAwere written
off following the company's liquidation.
On August 31, 2004, shares in Cybersearch SA were written
off following the company's liquidation.
Share acquisitions
Following the acquisition of 6,284,876 shares in Gameloft
SA on April 16, 2004, Ubisoft Entertainment SA held
27.34% of voting rights on March 31, 2005.
On March 31, 2005, Ubisoft Entertainment SA acquired
100% of the shares in Blue Byte GmbH initially held by its
subsidiary Red Storm Entertainment Inc. for the amount of
€412.6 thousand.
Asset purchases
On October 25, 2004, UbisoftEntertainment SA acquired the
technology, tools and source codes for team sports games of
the Microsoft Corporation for the amount of US$4,000,000.
Increases in capital
In September 2004, Ubisoft Entertainment SA increased its
capital holdings in Ubisoft GmbH through a cash contribution
of €2,000 thousand.
In September 2004, Ubisoft Entertainment SA increased its
capital holdings in Ubisoft Warenhandels GmbH through
incorporation of the current account totaling €920 thousand.
In March 2005, UbisoftEntertainment SAincreasedits capital
holdings in Shanghaï Ubi Computer Software Co. Ltd through
incorporation of the current account totaling €1,571 thousand.
2.2.5 Own shares
On January 5, 2005, Ubisoft Entertainment SA extended
the equity swap contract with Crédit Lyonnais by one year.
This contract involved 918,137 Ubisoft Entertainment SA
shares, sold at €18.66 each.
As of March 31, 2005, Ubisoft Entertainment SA held
8,473 of its own shares, acquired for an aggregate value of
€374 thousand and recorded as investment securities.
2.2.5.2 Comparability of accounts
In response to the change in tax position with regard to
calculating added value in the film industries and the
production of commercial software, as of April 1, 2004,
development costs subcontracted to group subsidiaries are
being recorded as subcontracting charges and carried to
assets in the form of capitalized production costs.
As of March 31, 2005, these development costs totaled
€101.5 million, compared with €78.8 million on March 31,
2004, and €71.5 million on March 31, 2003.
Tofacilitate comparison, the column headed “Fiscal year
3.31.04 pro forma” incorporates this change for the
previous year.
This change in presentation has no impact on Ubisoft
Entertainment SA's operating income.
2.2.5.3 Accounting principles
General accounting conventions were applied in
accordance with the principle of conservatism and the
following fundamental criteria:
lcontinuity;
lconsistency of accounting methods from one fiscal year
to the next;
lthe time-period concept;
plus compliance with the general rules governing the
preparation and presentation of annual financial
statements.
The historical cost principle was applied as the basic
method for the valuation of items shown in the accounts.
The accounting methods used are consistent with industry
practice. The annual accounts of Ubisoft Entertainment SA
follow the provisions relating to individual accounts
contained in Regulation 99-03, approved by France's
decree of June 22, 1999.