Ubisoft 2000 Annual Report Download - page 54

Download and view the complete annual report

Please find page 54 of the 2000 Ubisoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 94

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94

UBI SOFT / REFERENCE DOCUMENT
53
These business assets do not derive from the purchase of compa-
nies; they are business assets acquired on their own.
Business assets are not amortized in the Ubi Soft Entertainment SA
corporate accounts, but if they were to be valued at less than their
book value, a provision for amortization would be made.
In order to monitor shifts in the value of assets, we have set up a
value monitoring system based on activity and profitability criteria
(sales, net earnings) so that the value of the assets concerned can
be evaluated at the end of each financial year. At the time of acqui-
sition, the assessment method used was based on the sales made in
the countries concerned. The very short interval (about 3 weeks)
between the date of acquisition of the business assets in the United
States (beginning of March) and the account closing date made in
rather difficult to set appropriate profitability criteria, so the criteria
for the US will be defined and applied at the next account closing
date.
If the business assets were to be valued at less than their book
value, a provision for amortization would be applied, or an exceptio-
nal amortization would be applied if the loss in value proved to be
permanent.
As of March 31, 2001, Ubi Soft had expanded its sales by 86% in
Germany, 20% in Belgium, 26% in the Netherlands, 38% in France,
and so on. In view of the growth in the sales and profitability of the
companies, no provision was made in the accounts on March 31,
2001.
The accounting procedures used for the consolidated accounts are
consistent with those used for the parent company accounts.
>>> III. TANGIBLE FIXED ASSETS
Tangible fixed assets break down as follows:
TANGIBLE CHANGE IN
FIXED ASSETS ON 03/31/00 CONSOLIDATION ON 03/31/01
(IN ‘000 FRENCH FRANCS) GROSS INCREASE DECREASE STRUCTURE GROSS
Plant & machinery 19,759 9,680 1,726 4,255 31,968
Computer equipment and furniture 89,208 33,441 8,634 22,473 136,488
Transport equipment 459 21 - 379 859
Leased computer hardware 31,026 4,968 1,142 186 35,038
Fixed assets in progress 435 - 435 - -
TOTAL 140,887 48,110 11,937 27,293 204,353
DEPRECIATION CHANGE IN
ON 03/31/00 CONSOLIDATION ON 03/31/01
(IN ‘000 FRENCH FRANCS) CUMULATIVE INCREASE DECREASE STRUCTURE CUMULATIVE
Plant & machinery 7,418 3,245 36 1,922 12,549
Computer equipment and furniture 44,082 30,578 4,062 9,248 79,846
Transport equipment 160 81 - 218 459
Leased computer hardware 23,696 6,933 911 13 29,731
TOTAL 75,356 40,837 5,009 11,401 122,585
Business assets break down as follows as of March 31, 2001:
ON 03/31/00 ON 03/31/01
(IN ‘000 FRENCH FRANCS) CUMULATIVE INCREASE DECREASE CUMULATIVE
France - 74,400 - 74,400
United States - 172,525 - 172,525
Germany - 44,673 - 44,673
Belgium - 10,206 - 10,206
Netherlands - 7,501 - 7,501
Austria - 3,337 - 3,337
TOTAL - 312,642 - 312,642