Ubisoft 2008 Annual Report Download - page 142

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UBISOFTANNUAL REPORT 2009
Brands
All brands are recognised at their fair value in accordance with IFRS 3 on business combinations or IAS 38 on the acquisition of
intangible assets,
They are not amortised but are subject to impairment tests at least once a year. The methods used to test loss in value are detailed
in the note entitled "Non-current-asset impairment test".
Other intangible assets
Other intangible assets include:
• Ofce software,
• Information system costs,
• Commercial software,
• External developments.
Subsequent recognition and measurement
Other intangible assets acquired by the Group are recognised at cost minus accumulated amortization and impairment losses.
In accordance with IAS 38 “Intangible Assets,” items are only recognised as non-current assets where the cost can be determined
reliably and it is likely that they will generate future economic benets.
No borrowing costs are included in the costs of other intangible assets.
No Group company carries out any fundamental research. Development costs relate to the development of commercial software
(video games) and are capitalised as described below.
Development costs of commercial software, whether produced in-house or outsourced, are recognised in “intangible assets in
progress” as development progresses. Once they are released, these costs are transferred to the "released software" or “external
developments” accounts.
Commitments made under licence agreements are recognised for the amount specied in the agreement including the portion
not yet paid.
Amortization
TYPE OF ASSET AMORTIZATION METHOD
Ofce software 1 year, straight-line
Information system costs 5 years, straight-line
Commercial software 3 years starting on the commercial launch date
External developments Depending on quantities sold and royalty rates indicated in contracts or on
the duration of the contract
At the end of each scal year or whenever indication of impairment appears, the Group checks the recoverable value of capitalised
amounts and carries out an impairment test, as described in the note entitled "Non-current-asset impairment test".