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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
The cost of audiovisual rights acquired in a business combination is fair value at the date of acquisition.
The residual value, estimated at 2% of the total cost, is amor tised on a straight-line basis over three years from the time
the productions become available; unless these rights are sold to third par ties during the amor tisation period, in which
case the residual value is allocated to the revenue generated by the sale.
These rights are recognised in the separate income statement under “Rights consumption” based on the number of
shows broadcast in accordance with the following:
•
Series of less than 60 minutes and/or broadcast daily.
First screening:
100% of the amor tisable value.
•
Series of more than 60 minutes and/or broadcasted weekly.
First screening:
90% of the amor tisable value.
Second screening:
10% of the amor tisable value.
These rights are subject to valuation adjustments, where necessary, as detailed in Note 4.11.
4.7.3. Distribution rights
These include the rights acquired by the Group for their exploitation in all windows in Spain.
The cost of the right is that stipulated in the contract. Amor tisation of distribution rights is recognised on the basis of
the revenue generated in each window in which the right is exploited and of an estimate of future revenue from each
window.
When the free-to-air broadcasting or right commences, it is reclassified to “Audiovisual Property Rights”.
In the free-to-air window, the amor tisation of the rights is recognised in the separate income statement under
“Amor tisation of Audiovisual Proper ty Rights” in the same way as in the case of audiovisual proper ty rights, as detailed
in the related note to these consolidated financial statements.
4.7.4. Co-production rights
These include the co-production rights acquired by the Group for exploitation in all windows.
The cost of the right is that stipulated in the contract. Amor tisation of co-production rights is recognised on the basis of
the revenue generated in each window in which the right is exploited and of an estimate of future revenue from each
window.
When the free-to-air broadcasting or right commences, it is reclassified to “Audiovisual Property Rights”.
In the free-to-air window, the amor tisation of the rights is recognised in the separate income statement under
“Amor tisation of Audiovisual Proper ty Rights” in the same way as in the case of audiovisual proper ty rights, as detailed
in the related note to these consolidated financial statements.