Ubisoft 2016 Annual Report Download - page 160

Financial statements
5Separate fi nancial statements of Ubisoft EntertainmentSA for the year ended March31, 2016
FINANCIAL YEAR HIGHLIGHTS
Duration of the fi nancial year
The fi nancial year is a 12-month period from April 1, 2015 to
March 31, 2016.
Acquisition/Creation of subsidiaries
October 5, 2015, acquisition of full ownership of the French studio,
Ivory Tower SAS, and its subsidiary, Ivory Art & Design SARL, the
creator of the successful racing game, The Crew.
September 1, 2015: formation of Ubisoft Création SAS in France.
Disposals and contribution of shares
N/A.
Financing
November2015: Subscription of a new credit line
Ubisoft Entertainment SA subscribed a new credit line of €10 million
(maturing in October 2016).
December2015: Arrangement of a €5million loan
agreement
Ubisoft Entertainment SA took out a €5 million loan, the fi nal
repayment date of which is December 31, 2018. The loan is intended
to fi nance capital goods.
2016: Share buyback
At March 31, 2016, 3,488,214 shares had been bought back over
the previous 12 months for the sum of €79.3 million.
COMPARABILITY OF FINANCIAL STATEMENTS
Change in estimation
N/A.
Items affecting comparability
N/A.
ACCOUNTING RULES AND METHODS
General principles
Ubisoft Entertainment SA’s annual fi nancial statements have been
prepared in accordance with the ANC’s accounting regulation Nº
2014-03 approved by the decree of September 8, 2014.
General accounting conventions were applied in accordance with
the principle of fi nancial prudence and the following basic rules:
going-concern assumption; continuity of accounting methods from
one fi nancial year to the next, matching principle, fair presentation,
consistency and accuracy, and in accordance with the general rules
governing the preparation and presentation of annual fi nancial
statements.
The basic method used to measure items in the fi nancial statements
was historical cost.
The accounting methods applied are consistent with industry
practice.
Intangible assets
Intangible assets include:
♦ commercial software developments;
♦ external software developments;
♦ engines and tools;
♦ information system developments;
♦ acquired brands;
♦ offi ce software;
♦ goodwill.
Accounting and subsequent valuation
Commercial software and external software developments
Commercial software and external software developments are
capitalized when they meet the defi nition of an asset as per CRC
regulation 2004-06 and are valued at production cost.
Development costs, whether they are subcontracted to Group studios
or made externally, are recognized as subcontracting expenses
and transferred to “Intangible assets in progress” via a capitalized
production costs account.
On their release date, the development costs recognized as “Intangible
assets in progress”, as development progresses, are transferred to
“Released commercial software” or “Released external software
developments” for amortization.
Brands
Any brands acquired are recognized at cost.
- Registration Document 2016
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