Ubisoft 2009 Annual Report Download - page 92

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Ubisoft consolidates ad hoc entities in which the Company does not hold a direct or indirect interest but that it
controls in substance because it has the right to receive the majority of benefits or it retains the majority of
residual risks inherent to the ad hoc entity or its assets.
As of March 31, 2010, all companies controlled by the Group are fully consolidated; only Related Designs
Software GmbH, in which the Group has a 30% interest, is accounted for under the equity method.
Transactions eliminated in the consolidated financial statements
Balance sheet amounts, and income and expenses resulting from intragroup transactions, are eliminated during
the preparation of the consolidated financial statements.
Gains resulting from transactions with associates are eliminated for the Group's percentage interest in the
company.
Losses are eliminated in the same way as gains, but only to the extent that they are not indicative of impairment.
Translation of transactions denominated in foreign currencies
Transactions denominated in foreign currencies are translated by applying the exchange rate prevailing on the
date of the transaction.
At closing date, all monetary assets and liabilities denominated in foreign currencies (excluding derivatives) are
translated into euros at the closing exchange rate. Any resulting translation adjustments are recorded in the
income statement.
Non-monetary assets and liabilities denominated in foreign currencies are recorded at the exchange rate
prevailing on the date of the transaction.
Derivatives are valued and booked in accordance with the methods described in the note on financial instruments.
Translation into euros of the financial statements of foreign subsidiaries
The operating currency of Ubisoft's foreign subsidiaries is their local currency, in which they record most of their
transactions. The assets and liabilities of Group companies whose operating currency is not the euro are
translated into euros at the exchange rate prevailing at the end of the accounting period.
The income and expenses of these companies, along with their cash flows, are translated at the average
exchange rate over the year. Differences arising on translation are booked directly in consolidated equity, as a
separate item.
Goodwill and fair value adjustments resulting from the acquisition of a foreign entity are considered to belong to
the foreign entity and are therefore expressed in the entity's operating currency. They are translated at the closing
rate prevailing at the end of the accounting period.
Upon disposal of a foreign subsidiary, the relevant translation reserves booked in equity are recognized in profit
and loss.
The Group does not operate in countries suffering from hyperinflation.