Atari Incorporated began with $250 and an idea for a video game named Pong, eventually becoming
a $28 million enterprise. Over the years, Atari has been owned by a variety of companies, including Time-Warner, Hasbro, and, most recently, Infogrames (a public company in France). Infogrames made the following announcement:
On March 28, 2003, the Company announced that it has changed its fiscal year-end from June 30 to March 31. As a result of this change, the Company's fiscal year 2003 was a nine-month period. The Company believes that the March 31 year-end is consistent with more of its peers in the video game industry, allowing for more meaningful analysis and comparisons within the sector.
Required:
1. To which of the four factors that enhance the usefulness of information, introduced in Chapter 1, is the company referring?
2. On what SEC form would the change in year-end be reported?
3. Since the 2003 fiscal period includes only nine months, will the debt-to-assets, asset turnover, and net profit margin ratios be meaningful in 2003? Explain your reasoning.