@ UBIIOFT' ACTG 495 Case 2 - Financial statement analysis The following case involves nancial analysis of Ubisoft Entertainment SA and its subsidiaries ("Ubisoft" or "the Group"). Ubisoft is a French corporation with its corporate headquarters in Montreuil sous Bois, France (a suburb of Paris). The Group's business activities are centered around production, publishing and distribution of video games for consoles, the PC, smartphones and tablets in both physical and digital formats. This case involves the analysis of French reporting standards and Ubisoft's business strategy, accounting policy and financial performance. Requirements Part I - Reporting Format A. Beginning in 2001, France has required companies to disclose information in their annual reports about measures taken to account for environmental and social impacts of their activities (see the reading Week 4 - Sustainability reporting (skim) in Canvas for more information). Discuss the corporate social responsibility reporting ("CSR") section, addressing questions such as: 1) Do you think CSR is beneficial to understanding the Group, its competitive strategy, its operations and its future prospects? 2) Are there other valuable aspects of CSR? 3) Are there negative aspects of such reporting? What do you think about the CSR being presented prior to financial results (does this imply that it is more important)? B. What is your overall impression of IFRS reporting? Do you find the level of detailed Group information beneficial or is too much information presented? Does the level of detail required disclose too much Group information so as to possibly harm the Group, or do you believe more information is needed? (Please provide a brief response maximum half page.) Part II - Industry and Group Review the annual reports for the ve years ended March 31, 2021. Based on reading Ubisoft's annual reports identify key elements of Ubisoft's business strategy. Consider the characteristics of the industry analysis discussed in the Activision Discussion Case and explain the Group's plan for creating a competitive advantage (including, among other aspects, its business strategy in terms of (a) the nature of its products and services, (b) the degree of geographic diversification and (c) degree of industry diversification). Finally, do you believe that Ubisoft or Activision has a better strategy for the future? Part III - Profitability Perform a detailed analysis of the profitability of Ubisoft for the five years ended March 31, 2021. A. Are there any transactions that indicate poor earnings quality? Develop a table in your discussion that identifies each amount you consider an earnings quality issue and the after tax