Ubisoft 2012 Annual Report Download - page 90

Download and view the complete annual report

Please find page 90 of the 2012 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 192

  • 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
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

Financial Statements
2012
85
In financial year 2011/2012, profitability bonuses awarded to studio staff were fully recognized directly
in expenses, whereas they were capitalized as development costs in previous years. The impact on
operating income is not significant given the pace of depreciation and amortization of internal software.
This restatement has no impact on the presentation of the Group’s income statement.
In financial year 2011/2012, the calculation of video game tax credit income is limited to 9 months of
expenditure given the uncertainty, at the time of preparation of the financial statements, surrounding
the renewal of the process by the European Commission beyond December 31, 2011.
1.6.5.2 PREPARATION BASIS
Measurement bases
The consolidated financial statements were prepared using the historical cost method, with the
exception of the following assets and liabilities, which are measured at fair value: derivative financial
instruments, financial instruments held for trading and available-for-sale financial assets.
Operating and presentation currency
The consolidated financial statements are presented in euros, which is the parent company’s
operating currency. All financial data presented in euros are rounded to the nearest thousand.
Use of estimates
Preparation of the consolidated financial statements in accordance with IFRS requires the Group’s
management to make estimates and assumptions that affect the application of the accounting
methods and the amounts recognized in the financial statements.
These estimates and the underlying assumptions are established and reviewed continuously on the
basis of past experience and other factors considered reasonable in light of circumstances. They
therefore serve as a basis for calculating the carrying amounts of assets and liabilities that cannot be
obtained from other sources. Actual values may differ from estimates.
Both the estimates presenting a significant risk of changes in the subsequent period and the
judgments made by the management when applying IFRS, and likely to have a significant impact on
the financial statements, are presented in the following notes: