Ubisoft 2007 Annual Report Download - page 79

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CONSOLIDATED FINANCIAL STATEMENTS AS OF MARCH 31, 2008
75
2
Consolidated reserves and translation adjustments
The reserves break down as follows:
As with share capital, the legal reserve constitutes a guarantee for third parties dealing with the company. Because of this,
it cannot be distributed to shareholders.
The definition and the measurement and recognition principles for these benefit liabilities are presented in Section 2.5.3.3
Consolidation principles – Employee benefits.
Note 13 Provisions
Provisions break down as follows:
Ubisoft Divertissements Inc (Canada) received a preliminary notification of tax adjustment from the Canadian tax authori-
ties relating to fiscal years 1999 to 2003. No adjustment was assessed as a result of the audit.
Consequently, Ubisoft Divertissements Inc, starts to initiate a process regarding transfert prices with both fiscal adminis-
trations. Waiting for this agreement the 3 million of CAD provision has been maintained.
Ubisoft Entertainment SA’s most recent tax audit dates back to 2003 (for the period from April 1, 2000 to March 31, 2003).
A tax audit for the period from April 1, 2004 to March 31, 2007 is currently in progress, but no adjustment has yet been
received.
Note 14 Employee benefit liabilities
03.31.08 03.31.07
Legal reserve 704 505
Other reserves 117,200 75,888
Translation adjustments (58,646) (36,608)
Own shares held (1,573) (795)
Consolidated reserves and translation adjustments 57,685 38,990
As of Increases Reversals Reversals Translation As of
03.31.07 (provision (provision adjustment 03.31.08
used) not used)
Provision for tax risk 1,952 12 (103) 1,861
Total 1,952 12 (103) 1,861
As of Increases Reversals Translation As of
03.31.07 adjustment 03.31.08
Provisions for post-employment benefits 1,205 494 - 1,699
Total 1,205 494 - 1,699