Ubisoft 2014 Annual Report Download - page 142

Financial statements
2014
137
03/31/14
03/31/13
Notes
Carrying
amount
Provisions
Net carrying
amount
Net
carrying
amount
Available-for-sale financial assets
8
-
-
-
5,100
Trade receivables
6
74,471
1,151
73,320
36,619
Other current trade receivables
7
74,812
-
74,812
105,744
Foreign exchange derivatives
8
739
-
739
1,236
Stock futures
8
793
793
514
Current tax assets
16,972
-
16,972
15,987
Cash and cash equivalents
9
237,946
-
237,946
237,704
A provision for bad debts is recognized following an individual analysis of trade receivables due at the
balance sheet date.
Exposure to counterparty risk
All cash must remain highly liquid by limiting capital risk exposure as much as possible. This should
therefore be invested in products with a high degree of security, very low volatility and a negligible risk
of changes in value. All instruments in which the Group invests meet the requirements of IFRS 7. For
instance, some prudential rules must be respected for the Group’s cash investments:
- Never hold more than 5% of a fund’s assets
- Never invest more than 20% of total cash in the same vehicle
The Group diversifies its investments with top tier counterparties and monetary instruments with less
than three months’ maturity.
As at March 31, 2014, the Group’s investments consisted of cash SICAVs.
Securities risk
Risk to the Company’s shares
Own shares are held under a market-making and liquidity agreement signed with Exane BNP. These
purchases are made under the terms of a market-making agreement that complies with all applicable
regulations, and are designed to ensure the liquidity of purchases and sales of shares.
The Company allocated €1.7 million for the implementation of this agreement.
400,000 shares were purchased on the market (assigned to employee shareholdings) under the 6th
resolution of the General Meeting of June 30, 2011.
As at March 31, 2014, the Company held 467,618 own shares with a value of €2,734 thousand. Own
shares are deducted from equity at cost of sale.
Transfers of financial assets
Transferred financial assets not derecognized in their entirety
Factoring agreements on unvested rights under the CTMM (partially derecognized)
In March 2011, the production subsidiary Ubisoft Divertissements Inc. concluded a factoring
agreement for claims relating to the unvested rights of Investissement Québec under the so-called
“CTMM” grant.
The risks associated with these receivables, mainly counterparty risk is transferred to the counterparty
of the factoring agreement; the transferred receivables are derecognized from the balance sheet of the
group.
Following an amendment made in March 2014, Ubisoft Divertissements Inc. receives 85% of the sale
price of the receivables transferred at the transfer date. The remaining 15% is collected at the time of
actual payment of the grant by Investissement Québec, the counterparty of the factoring agreement.