Ubisoft 2006 Annual Report Download - page 101

CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2007
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Report for the consolidated account
statements for the fiscal year
ending March, 31, 2007
Dear Shareholders,
Pursuant to the assignment entrusted to us by your General Meeting, we have audited the consolidated financial statements
of Ubisoft Entertainment SA for the fiscal year ended March 31, 2007, as attached to this report.
The consolidated financial statements have been prepared by the Board of Directors. It is our task to express an opinion on
these financial statements on the basis of our audit.
I - Opinion regarding the consolidated financial statements
We have conducted our audit in accordance with accepted professional standards in France. These standards require due
diligence in order to ascertain with reasonable certainty that the consolidated financial statements contain no material ano-
malies. An audit consists in examining, on a test basis, evidence relevant to the information contained in the financial sta-
tements. It also involves assessing the accounting principles applied, the significant estimates made in preparing the
financial statements and their overall presentation. It is our view that the audit we conducted forms a true and fair basis for
the opinion expressed below.
We hereby certify that, from the standpoint of IFRS standards as adopted in the European Union, the consolidated financial
statements give a true and fair view of the assets, financial position and results of the group comprising the consolidated
persons and entities.
II - Basis for assessment
Pursuant to the provisions of Article L. 823-9 of the French Commercial Code regarding the basis for assessment, we call
your attention to the following items:
Commercial software
The note relating to “Other intangible assets” in the section of the notes entitled “Consolidation principles” describes the
accounting principles for the recognition and amortization of commercial software.
As part of our assessment of the accounting rules and principles applied by your company, we have verified the appropria-
teness of the accounting methods indicated above and of the information provided in the notes, and have ensured their cor-
rect application.
Goodwill and brands
The notes relating to “Goodwill” and “Brands” in the section of the notes entitled “Consolidation principles” describes the
accounting principles for the recognition and amortization of these intangible assets.
As part of our assessment of the accounting rules and principles applied by your company, we have reviewed the procedu-
res for conducting this impairment test, as well as the cash flow forecasts and assumptions used, and verified that the above
notes provide appropriate information.
Provision for tax risk
Ubisoft Divertissements Inc. is subject to a tax inspection under the conditions described in “Note 13 – Provisions” of the
notes to the consolidated financial statements. The company, which objected to the tax adjustment, set up a provision in the
amount of the estimated risk at closing.
As part of our assessment of the significant estimates used to prepare the financial statements, we:
- examined the reasons for the adjustment;
- reviewed the opinion of the experts and attorneys justifying the grounds for the objection made to the administration.
Our assessments were made within the context of our audit of the consolidated financial statements as a whole, and there-
fore provided a basis for the opinion expressed in the first part of this report.
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