Atari 2012 Annual Report Download - page 79

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ANNUAL FINANCIAL REPORT – REGISTRATION DOCUMENT
79
change the presentation of the “digital revenues”, and that the mobile and social portions of the “Digital”
segment should be reflected on a gross basis, with corresponding costs reflected in cost of goods sold. For
purposes of presentation consistency, the Company has restated FY 2010/2011 digital distribution revenues in
the same manner, with no impact to the gross margin or the rest of the P&L.
Fiscal year 2011/2012 is the first year revenues of "digital business" are significant. As such the Company
evaluated its revenue recognition policy as required by IAS 18.8. Contracts with the various market players,
including Apple, Android and Facebook, stipulate that these actors are agents in the transaction, and that all
significant risks and rewards associated with the transaction are still supported by Atari. On the other hand, the
selling price of applications is set by the company, not by the agent. Based on these facts, Atari decided to treat
income distribution "mobile, social, and digital" in gross basis, with the related costs reflected in the cost of
goods sold.
The group also searched on the treatment of such income by its competitors. The majority of peers are private
companies that do not publish their financial statements, but in informal conversations that took place, it was
noted that there was no consistency in treatment.
The impact of this change on the revenue and gross margin of the group is as follows:
NOTE 17 – RESTRUCTURING COSTS
Restructuring costs break down as follows:
NOTE 18 – PAYROLL EXPENSES
Payroll expenses from continuing operations, adjusted in accordance with IFRS 5, can be analyzed as follows:
The Group’s workforce breaks down as follows by employee category:
(in € million)
Net Gross Net Gross
Revenue 34,8 39,6 56,7 60,1
COGS (4,6) (9,4) (22,2) (25,6)
Gross Margin 30,2 30,2 34,5 34,5
31-Mar-12
31-Mar-11
(€ million)
Year ended
March 31, 2012
Year ended
March 31, 2011
Employee-related costs 0,4 0,2
Unused office space -0,7 0,4
Assets --
Professional fees and other costs 0,6 -0,2
Total 0,4 0,4
Payroll expenses
Year ended
March 31, 2012
Year ended
March 31, 2011
Wages and salaries 7.3 8.1
Payroll taxes 1.3 1.0
Incentive and profit-sharing bonuses 0.1 0.1
Share-based payments 1.7 0.1
Total payroll expenses 10.4 9.3
Number of employees March 31, 2012 March 31, 2011
Managerial staff 61 202
Non-managerial staff 10 152
Total workforce – Continuing and discontinued operations 71 354
Managerial staff 41 51
Non-managerial staff 10 10
Total workforce – Continuing operations 51 61