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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
2.3. Responsibility for the information and use of estimates
The information in these financial statements is the responsibility of the Company’s directors.
In preparing the Group’s consolidated financial statements for 2011, cer tain estimates and assumptions were made on
the basis of the best information available at 31 December 2011 on the events analysed. However, events that take place
in the future might make it necessary to change these estimates (upwards or downwards) in coming years. Changes
in accounting estimates would be applied prospectively, in accordance with the requirements of IAS 8, recognising the
effects of the change in estimates in the related consolidated income statements.
Estimates and assumptions are reviewed on an ongoing basis.The impact of changes in accounting estimates is recognised
in the period in which the estimates are changed if they affect only that period or in the period of the changes and future
periods if they affect both current and future periods.The main hypothesis and assumptions regarding future events and
other uncer tain sources of estimates at the date of preparation of the financial statements that may cause corrections
to assets and liabilities are as follows.
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Impairment of non-current assets
The Group assesses whether there are any indications of impairment for all non-financial assets at each repor ting
date. Goodwill and other indefinite life intangible assets are tested for impairment annually and at any time when such
indications exists. Other non-financial assets are tested for impairment when there are indications that the carrying
amounts may not be recoverable.
If there is objective evidence that an impairment loss occur, the amount of the impairment loss is measured as the
difference between the carrying amount of the assets and the estimated future cash-flow discounting using a proper
discount rate.
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Impairment of financial assets
The Group assesses at each statement of financial position date whether a financial asset or group of financial assets is
impaired.
If there is objective evidence that an impairment loss on assets carried at amor tised cost has been incurred, the amount
of the loss is measured as the difference between the assets’ carrying amount and the present value of estimated future
cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest rate computed at
initial recognition).The carrying amount of the asset is reduced through use of an allowance account.
In 2010 and 2011 financial year because of Endemol’s equity situation, the Directors made a best estimate of the
recoverability of the loans to the group, whose parent is Edam Acquisition Holding I Coöperatief U.A., based on its
estimated future net cash flows. See Note 11 for more details on these estimates.
If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal
payment and amor tisation) and its current fair value, less any impairment loss previously recognised in the separate
income statement.
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Useful life of property, plant and equipment and intangible assets
The Group periodically reviews the useful lives of its proper ty, plant and equipment and its intangible assets, prospectively
adjusting the provisions for depreciation when the estimates change.