Ubisoft 2013 Annual Report Download - page 105

Financial Statements
2013
100
Development costs of commercial software, whether produced in-house or outsourced, are recognized
in “in-house software and external development in progress” as development progresses. Once they
are released, these costs are transferred to the "released in-house software" or “released external
developments” accounts.
Commitments made under license agreements are recognized for the amount specified in the
agreement including the portion not yet paid.
Amortization
Type of asset
Amortization method͓͓
Office software
Straight-line, 1 year or 3 years
- Development costs related to information
systems ,
Straight-line, between 3 and 5 years
- Internal software development
3 years, straight-line, starting on the commercial release date.
Engines
Straight-line over the useful life between 3 and 5 years
External developments
Depending on quantities sold and royalty rates indicated in contracts or on the
duration of the contract
According to international standard IAS 38, the group is required to periodically revise its durations for
depreciation based on the observed useful life.
At the end of each fiscal year or whenever indication of impairment appears, the Group checks the
recoverable value of capitalized amounts and carries out an impairment test, as described in the note
entitled "Non-current-asset impairment test".
Property, plant and equipment
The gross value of property, plant and equipment includes the acquisition cost minus installments
made and any investment subsidies granted. The cumulative totals for depreciation and impairment
are then dedcuted (see accounting methods described in the note on goodwill).
Given the types of non-current assets held, no distinct component of the main non-current assets was
noted.
No borrowing costs are included in the costs of property, plant and equipment.
The same rates are used throughout the Group to calculate depreciation, employing the following
methods and useful lives:
Type of asset
Amortization method͓͓
Buildings
Straight-line, between 15 and 25 years
Equipment
Straight-line, 5 years
Fixtures and fittings
Straight-line, 10 years
Computer hardware
Straight-line, 3 years
Office furniture
Straight-line, 10 years
Transportation equipment
Straight-line, 5 years
According to international standard IAS16, the group is led to periodically revise its durations
depreciation based on the observed useful life.
Non-current assets acquired under finance leases
Leases that transfer practically all risks and benefits inherent in ownership of the asset are classified
as finance leases.
Non-current assets financed via finance leases are restated in the consolidated financial statements
so as to reflect the position that would have existed if the Company had used borrowed funds to
acquire the assets directly.