Atari 2009 Annual Report Download - page 71

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
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 Rollout as from June 2008 of a worldwide restructuring plan (Atari Transformation), together with an additional
restructuring plan in the fourth quarter of the year in order to limit the impact of falling demand from end-consumers
and facilitate the Group‟s transition to Online business (see Note 1.4).
 Reorganization of publishing operations with the aim of maximizing revenue generated by non-online intellectual
property through the monetization of licenses and by entering into publishing partnership agreements. The first
stages of this plan have already been implemented, for example through the worldwide launch program for
Ghostbusters: The Video Game, which includes an exclusive agreement with Sony Computer Entertainment Europe
for the launch of the game on the PS3 and PS2 in Europe and the PAL regions.
 Changing the Company‟s corporate name from Infogrames Entertainment to Atari. This move will enable the
Company to more effectively leverage the Atari brand by capitalizing on its worldwide reputation and its consumer
appeal – two factors that are key to implementing the Group's online, product and licensing strategies.
In order to ensure that it has the requisite funds to finance its operations in 2009-2010, the Company also:
 Secured on March 31, 2009, as part of the eighth addendum to the credit agreement with Banc of America on
April 22, 2006, an additional €15 million credit facility expiring on December 31, 2009.
 Entered into negotiations to extend the expiration date of its €61.7 million Banc of America credit facility from
December 31, 2009 to July 2010 (see Note 28). In light of the negotiations that have taken place so far,
management considers it likely that Banc of America will grant this extension.
Based on the above-described measures and assumptions, as well as the forecast for fiscal year 2009-2010 as
approved by the Board of Directors, management believes that the Group‟s financial resources – including the extension
of the Banc of America credit facility – will be sufficient to cover the Group‟s operating expenses and capital expenditure
for the year ending March 31, 2010.
On this basis, the Group has applied the going concern principle in preparing the consolidated financial statements.
Management believes that the assumptions it has used are reasonable. However, in view of the uncertainties inherent in
negotiating credit facilities and carrying out a strategic refocusing within a difficult economic environment, actual results
may differ from management‟s forecasts. Such a situation could limit the Group‟s ability to finance its recurring
operations and lead to adjustments in the value of its assets and liabilities, notably goodwill and intangible assets whose
total value in the consolidated balance sheet at March 31, 2009 amounted to €34.9 million and €44.6 million respectively.
Exemptions to the retrospective application of IFRS opted for on the first-time adoption of IFRS (April 1, 2004)
The Group chose to use the following exemptions permitted under IFRS 1 for its opening IFRS balance sheet on April 1,
2004:
 Business combinations: the Group elected not to apply IFRS 3 retrospectively to business combinations predating
April 1, 2004.
 Cumulative translation differences: cumulative translation differences at April 1, 2004 were transferred to reserves.
 Share-based payments: the Group elected to apply IFRS 2, effective April 1, 2004, only to instruments granted after
November 7, 2002 and which had not fully vested at January 1, 2005.
New interpretations whose application was mandatory for the 2008-2009 consolidated financial statements
 IFRIC 14, IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction
 IFRIC 12, Service Concession Arrangements
 Amendments to IAS 39, Financial Instruments
 Amendments to IAS 7, Financial Instruments: Disclosures
The Group considers that the new interpretations adopted by the IFRIC which were applicable for the 2008-2009
consolidated financial statements did not have a material impact on its results or financial position.
New standards and interpretations that have been published but which are effective after the issue date of the
2008-2009 consolidated financial statements
The Group elected not to early adopt the following standards and interpretations in its consolidated financial statements
for the year ended March 31, 2009:
 Amendment to IAS 23, Borrowing Costs
 Revised version of IAS 1, Presentation of Financial Statements
 Amendment to IFRS 2, Share-based Payment
 Amendments to IAS 32, Financial Instruments: Presentation and IAS 1, Presentation of Financial
Statements – Puttable Financial Instruments and Obligations Arising on Liquidation
 Amendment to IFRS 1, First-time Adoption of International Financial Reporting Standards
 Revised version of IAS 27, Consolidated and Separate Financial Statements
 Revised version of IFRS 3, Business Combinations
 IFRIC 13, Customer Loyalty Programmes
 IFRS 8, Operating Segments
 Amendment to IAS 20, Accounting for Government Grants and Disclosure of Government Assistance
 IFRIC 15, Agreements for the Construction of Real Estate