Ubisoft 2005 Annual Report Download - page 96

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grants to the group’s employees) and group savings plans
(equity issues reserved for employees). Ubisoft decided to
adopt this standard beginning in 2004. Under IFRS 2, com-
pensation based on shares or options to subscribe or pur-
chase shares that are granted to employees must be
recorded at their fair value, which must be entered into the
income statement for the period in which the employees
acquire the rights (cf 2.5.4: Notes to the balance sheet –
Note 12: Equity, for the breakdown of concerned plans).
Note 13 Correction of income taxes from pre-
vious fiscal years – IAS 8
Under IAS 8, the adjustment in deferred income tax from
previous fiscal years reported in March 2005 must be pos-
ted to the opening share capital in March 2004.
Note 14 Leases – IAS 17
Under IAS 17, lease contracts that substantially transfer
all the risks and rewards incident to ownership of the asset
are considered to be finance lease agreements. Capital
assets that are financed by finance lease agreements are
restated in the consolidated accounts as if the company
had acquired the assets directly using loan financing. The
amount recorded as an asset is equal to the lower of the
fair value of the leased goods or the present value of the
minimum lease payments.
Note 15 Reclassifications – IAS 1
Divergences between French principles and the IFRS on
the presentation of the consolidated balance sheet lead to
certain reclassifications, in particular:
- The distinction between current and non-current items.
- Goodwill related to an associate.
- Advances and installments paid on license agreements,
henceforth booked as non-current assets.
- Transfers of charges and grants are offset against the
corresponding charge.
Note 16 Other intangible assets
In the context of a first-time adoption of the IFRS system,
other intangible assets are evaluated by convention using
the historical cost method. By convention, the historical
cost constitutes at a given date a substitute for the amor-
tized historical cost restated retrospectively at this date.
Note 17 Tangible assets
In the context of a first-time adoption of the IFRS system,
tangible assets are evaluated by convention using the his-
torical cost method. By convention, the historical cost
constitutes at a given date a substitute for the amortized
historical cost restated retrospectively at this date.