Ubisoft 2008 Annual Report Download - page 137

135
UBISOFT ANNUAL REPORT 2009
fI n a n c I a l s t a t e m e n t s 02
STANDARD CONSEQUENCES FOR THE GROUP
Improvement
in IFRS
Improvements in
international nancial
reporting standards
The IASB "annual improvements" have amended a few existing standards. Dates
of application vary between standards but most should fall in 2009. The Group
does not expect these amendments to have any signicant effect when rst
applied.
IFRS 8 Operating segments
(applicable to
accounting periods
starting from January
1, 2009)
IFRS 8 replaces IAS 14 "Segment Reporting". IFRS 8 covers the presentation of
data on the Group's operating segments taken from internal reports and used
by the main operational decision-maker (the Chairman and CEO for the Group)
to decide on the allocation, and assess the performance of resources. To date,
the Group presents its segment reports on a geographic basis.
The Group will continue to present its segment reports on a geographic basis,
in line with the "management approach".
IAS 36
(amended
by IFRS 8)
Impairment of assets
(applicable to
accounting periods
starting from January
1, 2009)
The principles outlined in IFRS 8 affect the structure of segment reporting and
the levels for combining the Cash Generating Units (CGU) used to test goodwill
values.
This amendment is backdated, requiring the identication of operating segments
according to the reporting process used as of March 31, 2009, following the
principles of IFRS 8.
As segment reporting continues to be based on geographic sectors, the Group
does not expect the rst application of the amended IAS 36 to have any signicant
impact.
IAS 1
(revised in 2008)
Presentation of the
nancial statements
(applicable to
accounting periods
starting from January
1, 2009)
Revised IAS 1 "Presentation of Financial Statements" (2007) introduces the
notion of comprehensive income, which presents changes in equity over the
period, as well as changes resulting from transactions with owners acting in
this capacity. The comprehensive income report may be presented on its own
(including the income statement and all changes in equity that do not occur with
the owners), or in two reports including an income statement and a separate
report covering income and other items of comprehensive income.
Revised IAS 1, which will necessarily apply to the Group's nancial reports as
of March 31, 2010 and is likely to have a signicant impact on the presentation
of the consolidated nancial statements. The Group has not yet decided on the
likely consequences of these amendments.
Revised IAS 23 Borrowing costs
(applicable to the
borrowing costs of an
eligible asset for which
capitalisation begins on
or after 1 January 2009)
Revised IAS 23 removes the option of recording borrowing costs under expenses
and requires that an entity capitalize borrowing costs directly attributable to
the acquisition, construction or production of a qualifying asset to non-current
assets, as part of asset costs. Application of revised IAS 23 will be mandatory
in the Group's consolidated nancial reports as of March 31, 2010 and will
constitute a change in the Group's accounting method.
In accordance with the transitional provisions, the Group will apply revised
IAS 23 to qualifying assets for which borrowing costs will start to be incorporated
from the date the standard applies. Accordingly, there will be no impact on
previous periods shown in the Group's consolidated nancial reports as of
March 31, 2010.