Ubisoft 2009 Annual Report Download - page 101

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The Group feels that presenting the "current operating income" sub-total separately on the income statement
makes it easier to understand recurrent operating performance and provides readers of the financial statements
with information useful in analyzing said performance.
Financing costs and other financial income and expenses
The cost of net financial debt includes income and expenses linked to cash and cash equivalents, interest
expenses on borrowings which include the sale of investment securities, creditor interest and the cost of
ineffective currency hedging.
Other financial income and expenses include the sale of non-consolidated securities, capital gains or losses,
provisions/reversals of impairment losses on financial assets (other than trade receivables), income and
expenses linked to the discounting of assets and liabilities, and foreign exchange gains and losses on unhedged
items.
The impact on profit and loss of measuring financial instruments used in the management of foreign exchange
risks is recognized in operating income.
Income tax
Income tax (income or expense) includes the current tax expense (or income) and deferred tax expense (income).
Tax is recognized in profit and loss, unless it relates to items that are recognized directly in equity, in which case it
is recognized in equity.
Current tax
Current tax is the estimated amount of tax owed on taxable income for an accounting period. It is determined
using the tax rates applicable at the closing date.
Deferred tax
Deferred income tax is measured using the balance sheet liability method for all temporary differences between
the carrying amount of the assets and liabilities and their tax basis. The following situations do not lead to
recognition of deferred tax: the recognition of an asset or liability in a transaction that is not a business
combination and which affects neither book profit nor taxable profit, and temporary differences linked to subsidiary
holdings insofar as these are unlikely to be reversed in the foreseeable future. Measurement of deferred tax
assets and liabilities depends on the way in which the Group expects to recover or settle the carrying amount of
the assets and liabilities using the tax rates applicable at the balance sheet date.
A deferred tax asset is only recognized where it is likely that the Group will have future taxable income against
which the asset may be utilized. Deferred tax assets are reduced to the extent that it is no longer likely that
sufficient taxable income will be available.
The impact of possible changes in tax rates on previously recorded deferred tax is recognized in income except
where it relates to an item recognized in equity.
Deferred tax is shown in the balance sheet separately from current tax assets and liabilities and is classified as
non-current items.
Methods of calculating earnings per share
Earnings per share
Basic earnings per share are equal to earnings divided by the weighted average number of shares in circulation
minus own shares.
Diluted earnings per share
Diluted earnings per share are equal to: