Atari 2010 Annual Report Download - page 114

ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
114
Income and expense items denominated in foreign currencies are recognized at their equivalent value in euros at the
transaction date. Liabilities, receivables and cash denominated in foreign currencies are translated using the exchange
rate at the balance sheet date. Differences arising on the translation of liabilities and receivables in foreign currencies
are recorded in the balance sheet under “Unrealized foreign exchange gains (losses)”.
A contingency provision is recognized for unrealized foreign exchange losses not offset by gains.
 Bond issue costs, premiums, discounts and redemptions
Bonds are recognized at the issue's nominal value. Costs and premiums are recognized in assets under “Accruals” and
are amortized in financial income over the life of the bonds, unless the redemption risk is hedged.
 Stock options
Stock options are accounted for as and when the options are exercised, as share issues with a value equal to the
exercise price paid by the option holders. Any difference between the exercise price and the nominal value of shares is
recognized as a premium over par.
 Grants of shares to be issued
Atari recognizes free shares to which beneficiaries' rights have vested at the time those shares are issued, by deducting
an amount equal to the nominal value of the shares issued from available reserves.
 Consolidated Tax Group
Atari and some of its French subsidiaries have set up a consolidated tax group. Under the tax consolidation agreement,
each entity calculates its tax expense as if no consolidation existed. The tax savings resulting from the use of the tax-
loss carryforwards of other consolidated subsidiaries are immediately recognized in income by Atari and no subsequent
cash refund is made. Whenever subsidiaries post profits, Atari may be subject to additional taxation as a result of the
previous deductions made of losses by those subsidiaries. During the fiscal period ended March 31, 2010, Atari SA was
the parent company of the consolidated group made up of Atari SA, Eden Games and Atari Europe.
 Cash flow statement
Cash includes cash, cash equivalents and marketable securities.
All cash flows relating to intra-group advances, loans and borrowings are recognized at their net value in cash flow from
financing activities, on the line “Net change in intra-group balances”.
 Use of estimates
The preparation of the annual financial statements in accordance with generally accepted accounting practices requires
the use of estimates and assumptions by the Company's management, which affect the value of assets and liabilities on
the balance sheet, contingent assets and liabilities referred to in the notes to the financial statements as well as the
amounts of revenue and expenses in the income statement. Final amounts may differ from those estimates and
assumptions.
The main estimates and assumptions used to prepare the financial statements generally concern the assumptions used
to measure provisions for impairment of investments in subsidiaries and associates, taking into account the current
financial and economic crisis and on the basis of market inputs at the balance sheet date.
3. Intangible assets and property, plant and equipment
The table below shows changes in intangible assets for the year:
Software 371 - 371
Fixed assets in progress - - - - -
Total gross value 371 - - - 371
Accumulated amortization and
provisions (208) (124) - - (332)
Total net value 163 39
3/31/2010Other changes3/31/2009
(€ thousands) Acquisitions/
Allowances Disposals/ Revaluations
The table below shows changes in property, plant and equipment for the year:
Machinery and equipment 74 - - - 74
General fixtures and fittings 1,591 - - - 1,591
Office equipment and computers 408 - (198) - 210
Total gross value 2,073 - - - 1,875
Accumulated depreciation and
provisions (1,457) (346) 54 - (1,749)
Total net value 616 - - - 126
3/31/2010Other changes3/31/2009(€ thousands) Acquisitions/
Allowances Disposals/ Revaluations