Ubisoft 2008 Annual Report Download - page 206

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UBISOFTANNUAL REPORT 2009
Note 22. Non-recurring items
Article 14 of the Decree of November 29, 1983 denes non-recurring items as those that are not related to the normal operations
of the company: These break down as follows:
03.31.09 03.31.08
Non-recurring income:
Non-recurring income from management transactions 2,256 8,588
Non-recurring income from capital transactions 921 45,172
Non-recurring reversals 8,966 2
Non-recurring expenses:
Non-recurring expenses on management transactions - -
Non-recurring expenses on capital transactions 3,265 30,012
Non-recurring provisions 97,617 24,450
Non-recurring items -88,739 -700
As of March 31, 2009, non-recurring items mainly include:
• €88,651 thousand in net allocations for accelerated tax depreciation on developments expenditures of software.
• $3 million, €2.2 million, due on a claim for a damage.
Note 23. Income tax
As of March 31, 2009, the tax group comprised 10 companies governed by French law:
• Ubisoft Entertainment SA (head of group),
• distribution companies,
• companies providing support services.
Any tax savings arising from the use of losses at the tax group’s member companies will only be temporary, since the company
in question may use them at any time for its own purposes.
On a standalone basis (disregarding the tax consolidation group), Ubisoft Entertainment SA’s revenue was as follows:
03.31.09 03.31.08
Profit (loss) before tax from
continuing operations
135,824 77,873
Non-recurring items -88,739 -70 0
Profit (loss) before tax 47,085 77,173
Income tax (credit) 13,532 1,961
Taxable income 40,340 13,046
Income tax includes:
• €13,671 thousand in tax due for the company in respect of scal year 2009;
• €139 thousand in other tax credits.
A tax inspection is underway at Ubisoft Entertainment SA for the period from April 1, 2004 to March 31, 2007. The company received
a proposed adjustment for a very substantial amount, but primarily related to temporary differences, on August 4, 2008 but is
contesting all of the points mentioned. The company considers that the risk is extremely limited, consequently, no provisions have
been booked in the accounts.