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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
61
2.29. BUSINESS TAX – TERRITORY ECONOMIC TAX
The law of Finance for 2010 has created the Territory Economic Tax (“Contribution Economique Territoriale – CET “) in
order to replace, from Fiscal Year 2010 the Business Tax (“Taxe Professionnelle –TP”).
The « CET » is composed of two taxes: Business Land Tax (“ Cotisation Foncière des Entreprises – CFE") based on the
real estate goods and the Business Value Added Tax (“Cotisation sur la Valeur Ajoutée des Entreprises – CVAE”). The
Company considers that theses two taxes are, by nature, related to its activity and to the different entities of the Group
and recognizes, from the first calendar quarter of Fiscal Year 2010 both in the line “operating expenses” of its income
statement.
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:
Goodwill allocated to the “Online Development / Publishing” cash generating unit was increased by 2.5 million euro
following the final payment to Cryptic Studios’ shareholders based on the actual results of the earn out payable. See
Note 1.4. The March 31, 2011 goodwill balance related to Cryptic, approximately 19.8 million euro has been reclassified
to assets held for sale as part of the discontinued operations treatment of Cryptic Studios under IFRS 5.
3.2. GOODWILL BY CASH-GENERATING UNIT
In accordance with the accounting principle described in Note 2.12, the Group has allocated its goodwill to cash-
generating units (CGUs). The CGUs correspond to the Group’s core businesses and do not therefore represent legal
entities. Net goodwill per CGU is as follows:
The Online Development CGU represents Cryptic, which was acquired during Fiscal Year 2008/2009. This cash
generating unit was increase by 2.5 million euro following the final payment to Cryptic Studios’ shareholders based on
(€ million) Total
March 31, 2009 34.9
Changes in scope of consolidation -
Increase -
Impairment for the year -
-
Translation adjustments (0.9)
Other changes (9.5)
March 31, 2010 24.5
Changes in scope of consolidation -
Increase -
Impairment for the year -
(19.8)
Translation adjustments (1.8)
Other changes 2.5
March 31, 2011 5.4
Reclassification of assets held for sale
Reclassification of assets held for sale
(€ million) Online
Development Publishing TOTAL
March 31, 2011 - 5.4 5.4
March 31, 2010 18.7 5.8 24.5