Ubisoft 2013 Annual Report Download - page 132

Financial Statements
2013
127
Risk to other securities
At March 31, 2013, financial assets included €5.1 million in shares in the listed company Gameloft.
On July 12, 2007, Ubisoft Entertainment SA signed two contracts with CACIB. The first concerns the
sale of all Gameloft shares held by Ubisoft Entertainment SA, or 13,367,923 shares at a price of €6.08
per share. The second is the opportunity for Ubisoft to continue to benefit from upward and downward
fluctuations in the share price in relation to the price of €6.08 per share until July 15, 2013.
Under IAS 39, all the risks and benefits have not been transferred; the Gameloft shares have been
classified as available-for-sale current financial assets.
The sale of Gameloft shares on the market by CACIB is recorded in the income statement.
The Gameloft shares not yet sold by CACIB are measured at fair value. The change in fair value of
shares not yet sold by CACIB is recognized in other comprehensive income.
Information on the valuation of these shares is presented in note 9.
A 10% change in the closing price would have an impact of €0.5 million on consolidated equity and
comprehensive income (excluding effect of deferred taxation).
Transfers of financial assets
Transferred financial assets not derecognised in their entirety
Factoring agreements on unvested rights under the CTMM (partially derecognized)
In March 2011 the production subsidiary Ubisoft Divertissements Inc concluded a factoring agreement
for claims relating to the unvested rights of Investissement Québec under the so-called "CTMM" grant.
The risks associated with these receivables, mainly counterparty risk is transferred to the counterparty
of the factoring agreement; the transferred receivables are derecognized from the balance sheet of the
group.
Following an agreement in March 2012, Ubisoft Divertissements Inc receives 80% of the sale price of
the receivables transferred at the transfer date; the remaining 20% is collected at the time of actual
payment of the grant by Investissement Québec, the counterparty of the factoring agreement. The
risks and benefits associated with 20% of transferred receivables retained by the Group, a portion of
20% of outstanding claims relating to unvested rights of the organization Investissement Québec
under the so-called "CTMM" grant remains the balance sheet of the Group.
Subsidiary (in thousands of euros)
Factoring agreement on the "CTMM" grant
Nature of the assets transferred
Claim on a government agency on the right to
receive a government grant
Nature of the risks and rewards of ownership of the transferred assets
Default risk/ Risk of late payment
Total carrying amount of assets before the initial transfer
€31.6 million
Carrying amount of assets still recognized
€6.3 million
Carrying amount of the associated liabilities
N/A
Nature of the relationship between the transferred assets and associated
liabilities
N/A
Restrictions on use of the assets transferred arising from the transfer
Legal ownership of the debt transferred to the
counterparty
Financial assets derecognised in their entirety
Subsidiaries of English and German distribution of the Group concluded respectively in March 2005
and May 2006, a factoring agreement on trade receivables from subisidiaries located in the United
Kingdom and Germany.
The risks associated with these receivables, mainly counterparty risk is transferred to the counterparty
of the factoring agreement; the transferred receivables were completely derecognized from the
balance sheet of the Group.