Basic HTML Version
129
FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
4.2. Translation of financial statements of foreign subsidiaries
The consolidated annual financial statements are presented in euros, which is the Group’s functional and presentation
currency. Each entity in the Group determines its own functional currency and items included in the financial statements
of each entity are measured using that functional currency. The statement of financial position and separate income
statement headings of consolidated foreign companies are translated to euros at the year-end exchange rate, which
means:
• All assets, rights and liabilities are translated to euros at the exchange rate ruling at the close of the foreign subsi-
diaries’ accounts.
• Separate Income statement headings are translated at the average exchange rate.
The difference between the equity of foreign companies, including the balance of the separate income statement,
translated at year–end exchange rates and the equity obtained translating the assets, rights and liabilities by applying
the criteria set for th above are shown under ”Translation differences”, under equity in the consolidated statement of
financial position.
4.3 Related parties
The corresponding heading in the consolidated statement of financial position includes the balances with significant
shareholders and associates. The other balances arising from related-party transactions with directors and key
management personnel are classified under the appropriate consolidated statement of financial position headings.
4.4. Current/Non-current classification
In the accompanying consolidated statement of financial position, assets and liabilities maturing within no more than 12
months are classified as current items and those maturing within more than 12 months are classified as non-current
items.
Audiovisual rights are classified in full as non-current assets. Note 8 details the rights that the Group expects to amor tise
within a period of less than 12 months.
4.5. Property, plant and equipment
Proper ty, plant and equipment are recognised using the cost model, which includes the cost of acquisition of the assets
and the additional expenses incurred until they have become operational. Proper ty, plant and equipment are measured
at the lower of cost and recoverable amount.
Repairs that do not lead to a lengthening of the useful life of the assets and maintenance expenses are charged directly
to the separate income statement.
The depreciation of proper ty, plant and equipment is calculated systematically, using the straight-line method, on the
basis of the useful life of the assets, based on the actual decline in value caused by their use and by wear and tear.