Ubisoft 2005 Annual Report Download - page 94

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03.31.05 Notes
Net earnings, group share, CRC 99-02 standard 20,022
IAS 32 & 39 Own shares -116 1
IAS 32 & 39 Bond debentures -1,213 2
IAS 32 & 39 Exchange rate options 514 3
IAS 32 & 39 Equity swap 5,812 4
IAS 32 & 39 Variation in non-consolidated investments 81 5
IFRS 2 Share-based payments -5,464 12
IFRS 3 Goodwill 7,177 7
IAS 38 Internal created trademarks -85 8
IAS 1 Accrued expenses related to marketing expenses -2 9
IAS 8 Correction of income taxes from previous fiscal years -1,993 13
IAS 17 Leases -1 14
Net earnings, group share, IFRS standards 24,732
2.5.9.4 Summary of restatements net earnings as of March 31, 2005
2.5.9.5 Notes on restatements
and reclassifications
The IFRS financial data for 2004/2005 have been prepared
in accordance with the provisions of IFRS 1, “First-Time
Adoption of International Financial Reporting Standards”.
The general restatement rule is that the accounting prin-
ciples used to prepare the provisional IFRS financial infor-
mation be applied retrospectively to the opening balance
sheet. The impact of these adjustments is recorded directly
through equity.
The group has adopted certain optional exceptions set
forth in IFRS 1 to the general principle of retrospectively
restating assets and liabilities:
Company mergers
Ubisoft has opted for the option offered by IFRS 1 to not
retrospectively restate company mergers that took place
before April 1, 2004.
The company has decided to choose the option offered by
IFRS 1 to not retrospectively reconstitute the translation
differentials accumulated as of 01.01.04 with respect to
foreign consolidated companies. The closing price on
03.31.04 is thus considered the historical cost.
For all other IFRS standards, the entry values of assets and
liabilities as of April 1, 2004 have been retrospectively
restated as if these standards had always been applicable.
2.5.9.6 Description of the principal
IAS/IFRS restatements
Note 1 Own shares – IAS 39
Own shares must be deducted from equity. No profit or
loss may be reported on the income statement following
the purchase, sale, issue or cancellation of own-held equity
instruments.
Note 2 Bond debentures – IAS 39
The convertible bonds issued by Ubisoft in July 1998, the
convertible bonds exchangeable for new or existing shares
(OCEANE) issued in November 2001, and the bonds with
redeemable share subscription warrants (OBSAR) issued in
November 2003 are compound financial instruments
pursuant to IAS 32 and include a liability component and an
equity component.
- CB
In the balance sheet prepared according to French stan-
dards, convertible bonds were recorded as “Financial
debts” at their face value when issued. Under IFRS, the
convertible bonds’ equity component (€2.4 million) is
reclassified under “Equity components” in reserves, while
the liability component is shown as a debt. The impact on
the income statement depends on the impact of the sepa-
ration of the equity component and the calculation of the
overall effective interest rate.
- OCEANE
In the balance sheet prepared according to French stan-
dards, OCEANE were recorded as “Financial debts” at
their face value when issued. Under IFRS, the OCEANE’s
equity component (€5.8 million) is presented under
“Equity components” in reserves, while the liability
component is shown as a debt. The impact on the income
statement depends on the impact of the separation of the
equity component and the calculation of the overall
effective interest rate.
- OBSAR
In the balance sheet prepared according to French stan-
dards, OBSARs were recorded as “Financial debts” at their
face value when issued. Under IFRS, the OBSARs’ equity
component (€2.4 million) is presented under “Equity com-
ponents” in reserves, while the liability component is shown
as a debt. The impact on the income statement depends on
the impact of the separation of the equity component and
the calculation of the overall effective interest rate.
Note 3 Exchange rate options – IAS 39
- Foreign exchange hedge transactions
Under French accounting standards, gains and losses recor-
ded after any change in value in the derivatives, forward sales