Ubisoft 2014 Annual Report Download - page 165

Financial statements
2014
160
3.5.2 COMPARABILITY OF FINANCIAL STATEMENTS
Change in consolidation method, evaluation and presentation
N/A
Change in estimation
N/A
Items affecting comparability
N/A
3.5.3 ACCOUNTING PRINCIPLES
General accounting conventions were applied in accordance with the principle of financial prudence
and the following basic rules:
- going-concern assumption;
- matching principle;
- fair presentation, consistency and accuracy;
- conservatism;
and in accordance with the general rules governing the preparation and presentation of annual
financial statements.
The basic method used to measure items in the financial statements was historical cost.
The accounting methods applied are consistent with industry practice. Ubisoft Entertainment SA’s
annual financial statements comply with the provisions relating to separate financial statements in
Regulation CRC no. 99-03, as ratified by the Decree of June 22, 1999.
3.5.4 ACCOUNTING RULES AND METHODS
Intangible assets
Intangible assets include:
- Commercial software,
- Engines,
- External software developments,
- Information system costs,
- Office software,
- Acquired brands,
- Logo.
Accounting and subsequent valuation:
Brands:
Any brands acquired are recognized at cost.
Commercial software and external software developments:
Commercial software is developed by the Group’s own studios, while external software
developments are those of studios from outside the Group.
Commercial software and external software developments are capitalized when they meet the
definition of an asset as per CRC regulation 2004-06 and are valued at production cost.
Development costs subcontracted to Group subsidiaries are recognized as subcontracting expenses
and transferred to “intangible assets in progress” via a capitalized production costs account. The
same accounting method is applied to external software developments.