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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
Information on payment to suppliers in commercial transactions.
2010 was the first year in which the Resolution of 29 December 2010 passed by the Spanish Institute of Accounting and
Auditors of Accounts (ICAC) regarding disclosures in the notes to financial statements included information concerning
late payment to suppliers in commercial transactions. By vir tue of the stipulations in Transitional Provision Two, for first-
time application, the Company only provides information related to the past-due amounts payable to suppliers which at
year-end exceed the legal payment deadline.
The Company has disclosed the required information for the first time in 2011.
Preparation of the consolidated financial statements
The Company, as the Parent of a corporate group in accordance with mercantile law and given that it is a listed company,
is obliged to present consolidated financial statements in accordance with the International Accounting Standards as
approved by the European Union. Accordingly, the corresponding consolidated financial statements were prepared
together with these individual financial statements. Consolidated equity and net profit for the year ended 31 December
2011 totalled EUR 1,412,738 thousand and EUR 110,519 thousand, respectively.
Critical issues concerning the assessment of uncertainty
The preparation of the Company’s annual financial statements require the Directors to make judgments, estimates,
and assumptions which affect the application of accounting principles and the balances of assets, liabilities, income and
expenses and the disclosure of contingent assets and liabilities at the repor ting date.These estimates and assumptions
are based on historical experience and various other factors believed to be reasonable under the circumstances, the
results of which form the basis for making judgments about the carrying amount of the assets and liabilities that are not
readily apparent from other sources.Those estimates and assumptions are reviewed on an ongoing basis.The effects of
the reviews of the accounting estimates are recognised in the period during which they are carried out, if they relate
solely to that period, or in the period reviewed and future periods if the review affects both current and future periods.
Never theless, the uncer tainty inherent in the estimates and assumptions may lead to results that necessitate adjusting
the carrying values of the assets and liabilities affected in the future.
Aside from the general process of making systematic and periodically revising estimates, the directors made cer tain
value judgements on issues that have a special effect on the financial statements.
The main judgements as well as the estimates and assumptions regarding future events and other uncer tain sources of
estimates at the date of preparation of the financial statements that may cause corrections to assets and liabilities are
as follows:
Impairment of non-current assets
When measuring non-current assets other than financial assets, especially goodwill and intangible assets with an indefinite
useful life, estimates must be made to determine their fair value to assess if they are impaired.To determine fair value,
the directors estimate the expected cash flows from assets or the cash-generating units to which they belong and apply
an appropriate discount rate to calculate the present value of these cash flows.
Deferred tax assets
Deferred tax assets are recognised when the Income tax Group is likely to have future taxable profit against which these
assets may be utilized.
To determine the amount of deferred tax assets that can be recognised, the directors estimate the amounts and dates
on which future taxable profits will be obtained and the reversion period of taxable temporary differences.