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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
the amounts due under the original terms of the invoice.The carrying amount of the receivable is reduced through use
of an allowance account. Impaired debts are derecognised when they are assessed as uncollectible.
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Available-for-sale financial investments
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 profit or loss, is
transferred from equity to profit or loss. Reversals in respect of equity instruments classified as available-for-sale are not
recognised in profit or loss. Reversals of impairment losses on debt instruments are reversed through profit or loss; if
the increase in fair value of the instrument can be objectively related to an event occurring after the impairment loss
was recognised in the separate income statement.
4.12. Inventories
The cost of producing in-house productions is determined taking into account all the costs allocable to the product
incurred by the Group. Advances paid for programmes are also included.
The production costs are expensed when the related programmes are broadcast.
4.13. Cash equivalents
The cash equivalents comprise mainly shor t-term deposits, shor t-termmarketable bills and notes, shor t-term government
bonds and other money market assets maturing at three months or less.
4.14. Grants
The amounts received are recognised where there is reasonable assurance that the grant will be received and all
attaching conditions will be complied with.
Difference between the nominal value and the fair value of the loan is deducted from the carrying amount of the related
asset and its allocated to the separate income statement according to a basis.
4.15. Treasury shares
Own equity instruments which are reacquired (treasury shares) are recognised at cost and deducted from equity. No
gain or loss is recognised in the separate income statement on the purchase, sale, issue or cancellation of the Parent’s
own equity instruments. Voting rights related to treasury shares are nullified for the Group and no dividends are
allocated to them.
4.16. Financial liabilities
Financial liabilities are initially measured at fair value less attributable transaction costs. Following initial recognition,
financial liabilities are measured at amor tised cost, with any differences between cost and redemption value recognised
in the consolidated income statement over the period of the borrowings using the effective interest rate method.
Liabilities maturing in less than 12 months from the consolidated statement of financial position date are classified as
current, while those with longer maturity periods are classified as non-current.