Atari 2009 Annual Report Download - page 79

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
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- Dividends received from non-consolidated entities
- The effect of discounting provisions
- Foreign-exchange gains and losses
2.28. TAXES
Deferred taxes are recognized in the income statement and balance sheet to reflect temporary differences between the
accounting and tax value of certain assets and liabilities.
Deferred taxes are accounted for in accordance with the liability method and are measured taking into account tax rates
(and tax laws) that have been enacted or substantively enacted at the balance sheet date. The impact of changes in tax
rates on deferred taxes previously recognized in the income statement or in equity are recognized in the income
statement or in equity, respectively, in the period in which the rate changes become effective.
Deferred taxes are recognized either in income or in equity, depending on whether they pertain to items that are
recognized in income or in equity.
Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against
which the deferred tax asset can be utilized. The carrying amount of deferred tax assets is reviewed at each balance
sheet date and is reduced if it is no longer probable that sufficient taxable profit will be available to allow the benefit of
part or all of the deferred tax asset to be utilized. Any such reduction is reversed if it becomes probable that sufficient
taxable profit will be available.
Deferred tax assets and deferred tax liabilities are offset if, and only if, subsidiaries have a legally enforceable right to set
off current tax assets against current tax liabilities, and the deferred tax assets and liabilities relate to income taxes levied
in the same period by the same taxation authority.
Deferred tax assets and liabilities are not discounted.
2.29. EARNINGS PER SHARE
The Group reports both basic and diluted earnings per share.
Basic earnings per share correspond to attributable net income for the period divided by the weighted average number of
shares outstanding, net of any treasury shares.
Diluted earnings per share are calculated by dividing the adjusted attributable net income for the year by the weighted
average number of shares outstanding, plus all potentially dilutive ordinary shares. Potentially dilutive ordinary shares
include those to be issued on the exercise of stock options or warrants, grants of free shares and the conversion of
convertible bonds and bonds redeemable in shares (equity notes) issued by the Group.
NOTE 3 – GOODWILL
3.1. CHANGES DURING THE PERIOD
Goodwill arising on business combinations is recognized in the currency of the acquired entity as prescribed in IAS 21
and allocated to cash-generating units (CGUs) at the acquisition date.
A cash-generating unit is the smallest identifiable group of assets that generates cash inflows that are largely
independent of the cash inflows from other assets or groups of assets. The table below shows changes in goodwill for
the period: