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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
4.21. Revenue and expense recognition
Revenue and expenses are recognised net of the related taxes, except in the case of non-deductible expenses.
In accordance with the accrual principle, income and expenses are recognised when the goods or services represented
by them take place, regardless of when actual payment or collection occurs.
Revenue associated with the rendering of services is recognised by reference to the stage of completion of the services,
provided that the revenue can be measured reliably.
The Group’s main source of revenue is from adver tising.This revenue is recognised in the period in which it is earned;
i.e. when the related adver tisement is broadcast.
Expenses, including discounts and volume rebates, are recognised in the separate income statement in the period in
which they are incurred.
4.22. Equity-settled transactions
The Company maintains share option plans related to the compensation system for executive directors and board
members that are settled by delivering Company shares. The employee benefits expense is determined based on the
fair value of the share options to be awarded on the date the option is granted. This expense is recognised over the
stipulated three-year period during which the services are rendered.The fair value of share options established at the
date the award was granted is not modified.
The options’ fair value is measured based on an internal valuation using valuation option models – specifically, the
binomial method – and taking into account the price of the option in the year, the life of the option, the price of the
underlying shares, the expected volatility of the share price, estimated dividend payments and the risk-free interest rate
for the life of the option.The option valuation models and the assumptions used are described in Note 21.
4.23. Transactions in foreign currency
Transactions in foreign currency are initially recognised at the exchange rate prevailing at the date of the transaction. All
exchange gains or losses arising from translation as well as those arise when statement of financial position items settled
are recognised in the separate income statement.
4.24. Earnings per share
The Group calculates basic earnings per share on the basis of the weighted average number of shares outstanding at
year-end. The calculation of diluted earnings per share also includes the dilutive effect, if any, of stock options granted
during the year.
4.25. Environmental issues
In view of the business activities carried out by the Group, it does not have any environmental liability, expenses, assets,
provisions or contingencies that might be material with respect to its equity, financial position or results.Therefore, no
specific environmental disclosures have been included in these notes to the financial statements.