Ubisoft 2008 Annual Report Download - page 145

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UBISOFT ANNUAL REPORT 2009
fI n a n c I a l s t a t e m e n t s 02
Financial assets and liabilities presented are "non-current", except when those with a maturity of less than 12 months from
the year-end date. These are presented as "current assets" or "cash equivalents" depending on the circumstances.
Bank overdrafts are included in cash and cash equivalents as they are an integral part of the company's cash management.
They are presented in liabilities, but are also offset against cash in the cash ow statement.
Recognition and measurement of nancial assets (excluding derivatives)
In accordance with IAS 39, "Financial Instruments: Recognition and Measurement", nancial assets are broken down into
four categories:
• assets held to maturity (securities giving entitlement to xed or xable payments on set dates, and which the group is able and
intending to hold to maturity);
• loans and receivables (non-derivative nancial assets subject to xed or xable payments, and which are not listed on a deep
market);
• assets held for trading (investments or securities bought and held primarily with a view to a short-term resale);
• assets held for sale (all nancial assets not recognized in one of the three previous categories).
Classication depends on the nature and objective of each nancial asset, and is determined when rst recognised.
The Group has no nancial assets classed as "held-to-maturity".
• Loans and advances (loans and receivables category)
These include deposits and subsidies due.
When initially recognised, loans and advances are measured at fair value. These nancial assets are then booked at amortised
cost using the effective interest rate method. They are subject to recoverable value tests, carried out whenever there are objective
indicators (third party nancial position) that the recoverable value of these assets would be lower than the balance sheet value,
and at the very least on each account cut-off date.
• Trade receivables (loans and receivables category)
Trade and other receivables linked to operating activity are recorded at fair value - in most cases the same as nominal value - minus
any loss of value recorded in a special impairment account. As receivables are due in under a year, they are not discounted.
If there is any indication that these assets may be impaired, they will be subject to an analysis based primarily on the following criteria:
age of the receivable, third-party's nancial position, negotiation of a payment schedule, guarantees received, loan insurance.
The difference between the carrying amount and recoverable value is recorded as operating income. Impairment may be reversed
if the asset regains its value in future. Reversals are booked in the same item as provisions. Impairment is deemed permanent
when the receivable itself is considered to be permanently irrecoverable and written off.
• Long-term securities (available-for-sale assets category)
These include the Group's equity in companies not consolidated due to a lack of control or notable inuence.
The Gameloft shares that have not yet been disposed of by Calyon are classied under held-for-sale current assets as they no
longer meet the criteria for classication under IFRS 5.
Securities representing an interest in a listed company are recorded in the balance sheet at their fair value, and changes in the
fair value are directly recognised in equity. Except in the event of a signicant or lasting drop in fair value, the impairment noted is
booked under nancial prot and loss.
The fair value is the closing price of Gameloft stocks.