Ubisoft 2016 Annual Report Download - page 113

Financial statements
5
Consolidated fi nancial statements asatMarch31, 2016
Standards, amendments and interpretations published by the International Accounting Standards
Board (IASB) and not yet adopted by the European Union
Ubisoft does not expect their application to have any material impact, with the exception of IFRS 15, the potential impact of which is
currently under analysis.
Standards Consequences for the Group
IFRS9 Financial instruments (applicable to fi nancial
years beginning on or after January1, 2018)
IFRS9 outlines a unique method for determining whether a fi nancial asset must
be measured at amortized cost or at fair value, a single, forward-looking expected
loss impairment model and a reformed approach to hedge accounting.
IFRS15
Revenue from contracts with customers
(applicable to fi nancial years beginning on or
after January1, 2,018)
This standard specifi es the principles for the recognition of revenue that relates to
contracts entered into with customers and provides a 5-step model to be applied
to the recognition of fi nancial years beginning on or such revenue. This standard
presents the basic principle of recognizing revenue to depict the transfer of control
of goods or services to a customer, for an amount which refl ects the consideration
to which the entity expects to be entitled in exchange for said goods or services.
The new standard will also require additional information to be provided in the
Notes. The impacts of this new standard are currently under analysis.
Amendment
to IAS1
Disclosure initiative– (applicable to fi nancial
years beginning on or after January1, 2016)
Amendments to IAS1 are intended to clarify provisions on:
♦ the application of the concept of materiality;
♦ the exercise of professional judgment.
Amendment
to IAS7
Disclosure initiative– (applicable to fi nancial
years beginning on or after January1, 2017)
Amendments introduce additional sections to the standard. Entities shall make
the following disclosures regarding changes in liabilities included in fi nancing
activities:
♦ changes arising from cash fl ow from fi nancing;
♦ changes arising from obtaining or losing control of subsidiaries or other
businesses;
♦ the effect of changes in foreign currency exchange rates or fair value.
Amendment
to IAS12
Recognition of deferred tax assets for
unrealized losses– (applicable to fi nancial
years beginning on or after January1, 2017)
The published amendments aim to clarify provisions for the recognition of
deferred tax assets related to debt instruments measured at fair value, in
response to diversity in practice.
IFRS16 Leases (applicable to fi nancial years
beginning on or after January1, 2019)
This standard results in a fairer presentation of lessee’s assets and liabilities by
eliminating the distinction between operating and fi nance leases. It provides a
new defi nition of the term “lease”.
Amendments
to IFRS10 and
IAS28
Sale or contribution of assets between an
investor and its associate or joint venture
The aim of these amendments is to reduce discrepancies between the provisions
of IFRS10 and IAS28 (2011) relating to the sale or contribution of assets between
an investor and its associate or joint venture.
The principle consequence of these amendments is that the gain or loss from a
transfer must be recognized in full, when the transaction relates to a business
within the meaning of IFRS3 (whether a subsidiary or not).
Partial gain or loss is recognized when the transaction relates to assets that do
not constitute a business within the meaning of IFRS3, inclusive of subsidiaries.
ACCOUNTING PRINCIPLES AND MEASUREMENT METHODS
Comparability of fi nancial statements
Change in consolidation method, measurement
and presentation
First-time adoption of IFRIC21
IFRIC 21 – Levies charged by public authorities was adopted for the
fi rst time for the fi nancial year ended on March 31, 2016. IFRIC 21
provides guidance on when to recognize liabilities for levies imposed
by a public authority in application of tax legislation, accounted
for in accordance with IAS 37 and resulting in the immediate and
full recognition of taxes upon occurrence of the obligating event as
provided for in tax legislation.
IFRIC 21 was applied retrospectively, resulting in the restatement of
equity in comparative fi nancial information. The impact on equity
was €(0.2) million at March 31, 2015. At March 31, 2016, the impact
on operating profi t (loss) and on income tax was immaterial.
No change in method
N/A.
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