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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
4.7.5. Master copies and dubbing
These items relate to the material suppor ting the audiovisual proper ty rights and the cost of dubbing original versions,
respectively.
They are measured at cost and the related amor tisation is recognised at the same rate as the amor tisation of the
audiovisual property rights with which they are associated.
4.7.6. Retransmission rights
The costs for the rights to broadcast spor t are recognised under Procurements on the separate income statement at
the cost stipulated in the agreement. The costs are recognised when each event is broadcast. Advance payments are
recognised in the statement of financial position under other current assets.
4.8. Goodwill
Business combinations arising after 1 January 2010
Business combinations are accounted for using the acquisition method. The cost of the business combination is
determined by measuring the identifiable assets acquired and liabilities assumed at their acquisition-date fair values. For
each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value or at
the propor tionate share of the acquiree’s identifiable net assets.The acquirer shall account for acquisition-related costs
as expenses in the income statement as incurred.
When the Group acquires a business, it assesses the identifiable assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, its operating or accounting
policies and other pertinent conditions as at the acquisition date.
If the business combination is achieved in stages, the Group remeasures its previously held equity interest in the acquiree
at its acquisition-date fair value and recognises the resulting gain or loss, if any, in profit or loss.
Any contingent consideration the Group transfers is recognised at fair value at the acquisition date. Subsequent changes
in the fair value of contingent consideration classified as an asset or liability will be recognised in accordance with IAS
39, with any resulting gain or loss recognised either in profit or loss or in other comprehensive income. If the contingent
consideration is classified as equity, it should not be remeasured and its subsequent settlement is accounted for within
equity.
Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount
recognised for non-controlling interests over the fair value of the identifiable assets and liabilities measured as such in the
acquiree. If this consideration is lower, the difference is recognised in the separate income statement.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is reviewed for
impairment annually or more frequently if events or changes in circumstances indicate that the carrying amount may
be impaired.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Group’s cash-generating units or groups of cash-generating units expected to benefit from the
combination’s synergies, irrespective of whether other Group assets or liabilities are assigned to those units or groups
of units.