Ubisoft 2012 Annual Report Download - page 94

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Financial Statements
2012
89
Accounting and later valuation
Other intangible assets acquired by the Group are recognized at cost minus accumulated amortization
and impairment losses. In accordance with IAS 38 “Intangible Assets”, items are only recognized as
non-current assets where the cost can be determined reliably and it is likely that they will generate
future economic benefits.
No borrowing costs are included in the costs of non-current assets.
Development costs relate to the development of commercial software (video games) and are
capitalized as described below.
Development costs for commercial software, whether produced commercial or outsourced, are
recognized under the item “Commercial software and external developments in progress” as
development progresses. Once they are released, these costs are transferred to the “Released
commercial software” or “Released external developments” accounts.
Commitments made under license agreements are recognized for the amount specified in the
agreement including the portion not yet paid.
Amortization
Type of asset
Amortization method
Office software
Straight-line, 1 year or 3 years
Information system costs
Straight-line, 3 years or 5 years
Commercial software
2 or 3 years, starting on the commercial release date
Engines
Straight-line over the useful life between 3 and 5 years
External developments
Based on quantities sold and royalty rates indicated in contracts or over the
duration of the contract
Within the context of IAS 38, the Group is requested to periodically revise its amortization periods
based on the observed useful life.
At the end of each financial year or whenever an indication of impairment appears, the Group checks
the recoverable value of capitalized amounts and performs an impairment test, as described in the
note entitled “Impairment tests on non-current assets”.
Property, plant and equipment
The gross value of property, plant and equipment includes the acquisition cost minus installments
made and any investment subsidies granted. The cumulative totals for depreciation and impairment
are then deducted (see accounting methods described in the note on goodwill).
Given the types of non-current assets held, no distinct component of the main non-current assets was
noted.
No borrowing costs are included in the costs of property, plant and equipment.
The same rates are used throughout the Group to calculate depreciation, employing the following
methods and useful lives:
Type of asset
Depreciation method
Buildings
Straight-line, 15 years or 25 years
Equipment
Straight-line, 5 years
Fixtures and fittings
Straight-line, 10 years
Computer hardware
Straight-line, 3 years
Office furniture
Straight-line, 10 years
Transportation equipment
Straight-line, 5 years
Within the context of IAS 16 and IAS 38, the Group is requested to periodically revise its depreciation
periods based on the observed useful life.