Activision 2008 Annual Report Download - page 48

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34
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Directors of Vivendi Games, Inc.:
We have audited the accompanying consolidated balance sheet of Vivendi Games, Inc.
(“Vivendi Games,” as described in Note 2) as of December 31, 2007, and the related consolidated
statements of operations, changes in shareholders’ equity and cash flows for each of the two years
in the period ended December 31, 2007. These financial statements are the responsibility of the
Company’s management. Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. We were not
engaged to perform an audit of Vivendi Games’ internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of Vivendi Games’ internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the
overall financial statement presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Vivendi Games, Inc. as described in Note 2 as of
December 31, 2007, and the consolidated results of its operations and its cash flows for each of the
two years in the period ended December 31, 2007, in conformity with U.S. generally accepted
accounting principles.
As more fully described in Note 2, beginning in 2008, Vivendi Games retrospectively
changed the manner in which it recognizes revenue associated with sales of The Burning Crusade
expansion pack, which was released in January 2007.
/s/ Ernst & Young LLP
Los Angeles, California
February 29, 2008,
except for the effects of the change in accounting
principle described in Note 2, as to which the date is
November 5, 2008