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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
Impairment is determined by assessing the recoverable amount of the cash-generating unit or groups of cash-generating
units to which the goodwill relates. If the recoverable amount of the cash-generating unit or group of cash-generating
units is less than the carrying amount, the Group recognises an impairment loss.
Goodwill impairment losses cannot be reversed in future periods.
When an entity sells or otherwise disposes of an operation within a cash-generating unit to which goodwill has been
allocated, the goodwill associated with the operation should be included in the carrying amount of the operation when
determining the gain or loss on disposal and measured on the basis of the relative values of the operation disposed of
or sold and the portion of the cash-generating unit retained.
4.9. Non-current investments in companies accounted for using the
equity method
The companies over which the Group exercises significant influence, directly or indirectly, through an ownership interest
of 20% or more in the voting power of the investee are accounted for using the equity method.
Investments in an investee are initially recognised at cost, which will be increased or reduced on the basis of the Group’s
share of the investee’s equity, subsequent to the date of acquisition.
The value of these investments in the consolidated statement of financial position includes, where applicable, the goodwill
arising on the acquisition thereof.
The results of the investee are recognised in profit or loss in propor tion to the Group’s percentage of ownership.
Where there has been a change recognised directly in the equity of the associate, the Group recognises its share of any
change and discloses this, when applicable, in the statements of changes in equity.
The dividends received from investees reduce the carrying amount of the investment.
Following the application of the equity method and recognition of the value of the associate, if there is any indication
that the investment might have become impaired, pursuant to IAS 39 the relevant analysis and impairment tests are
carried out in order to recognise the impact of the impairment loss on the investment in the year in which it is detected.
If the Group’s share of losses of the associate equals or exceeds its investment, it discontinues recognising its share of
fur ther losses. The interest in an associate is the carrying amount of the investment in the associate under the equity
method together with any non-current interest that, in substance, form par t of the investor’s net investment in the
associate. Losses recognised under the equity method in excess of the Group’s investment in ordinary shares are applied
to the other components of the interest in the associate in the reverse order of their seniority (i.e. priority in liquidation).
Upon loss of significant influence in the associate, the Group measures and recognises any retaining investment at its fair
value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value
of the retained investment is recognised in profit or loss.
In addition, amounts recognised in“Recyclable reserves in associates” are reclassified to the consolidated separate income
statement, with the investment in that company recognised under “Non-current financial assets” in the consolidated
statement of financial position.