Ubisoft 2016 Annual Report Download - page 177

Download and view the complete annual report

Please find page 177 of the 2016 Ubisoft annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 216

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216

Financial statements
5
Separate fi nancial statements of Ubisoft EntertainmentSA for the year ended March31, 2016
Foreign exchange risk
The Company’s exposure to foreign exchange risk stems from
operating cash fl ows and its investments in foreign subsidiaries.
The Company only hedges its exposures on cash fl ows from operating
activities in the main foreign currencies (US dollar, Canadian dollar
and Pound sterling). Its strategy is to hedge only one year at a time,
so the hedging horizon never exceeds 18 months.
The Company fi rst uses natural hedges provided by transactions
in other directions (development costs in a foreign currency offset
by contributions from subsidiaries in the same currency). The
parent company uses foreign currency borrowings, forward sales
or foreign exchange options to hedge any residual exposures and
non-commercial transactions (such as inter-company loans in
foreign currencies).
At March 31, 2016, the amounts hedged giving rise to forward
purchases and sales of foreign currencies amounted to
€607,256 thousand (see Note 25 on Off-statement of fi nancial
position commitments).
NOTE23 NON-RECURRING ITEMS
Article 14 of the Decree of November 29, 1983, defi nes non-recurring items as those that are not related to the normal operations of a company.
03/31/16 03/31/15
Non-recurring income
Non-recurring income from capital transactions 1,712 4,134
Non-recurring reversals 178,689 270,518
Non-recurring expenses
Non-recurring expenses on management transactions 225 1,500
Non-recurring expenses on capital transactions 644 3,593
Non-recurring provisions 318,732 172,435
NON-RECURRING ITEMS (139,200) 97,125
At the end of March 2016, non-recurring items mainly comprised:
♦ €318,573 thousand in allocations for accelerated tax depreciation on development expenditure for software;
♦ €178,689 thousand in reversals for accelerated tax depreciation on development expenditure for software.
NOTE24 CORPORATION TAX
At March 31, 2016, the tax group included Ubisoft Entertainment SA (holding company), and all subsidiaries with their registered offi ces
in France, with the exception of those created and acquired during the fi nancial year.
On a standalone basis (disregarding the tax consolidation group), Ubisoft Entertainment SA’s fi gures were as follows:
03/31/16 03/31/15
Net income before tax from continuing operations 28,732 79,316
Non-recurring items (139,200) 97,125
Net income before tax (110,468) 176,441
Income tax (credit) (5,162) 25,741
Net accounting income (105,306) 150,700
Taxable income (84,999) 220,294
- Registration Document 2016 175