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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
Once the legal or the company bylaw requirements have been met, dividends may only be distributed against profit for
the year or against freely distributable reserves if the value of equity is not lower than share capital or would not be
caused to be less than share capital by the distribution of dividends. Accordingly, profit recognised directly in equity may
not be distributed either directly or indirectly.Where losses exist from previous years that reduce the Company’s equity
to below the amount of share capital, profit must be allocated to offset these losses.
Companies are required to set aside a restricted reserve equal to the amount of goodwill shown in assets. An amount
of profit representing at least 5% of goodwill must be earmarked for this purpose. If no profit or insufficient profit is
earned, unrestricted reserves must be used for this purpose.
4. RECOGNITIONAND MEASUREMENT ACCOUNTING POLICIES
The main recognition and measurement accounting policies applied in the preparation of these financial statements are
as follows:
Intangible assets
Intangible assets are measured at cost of acquisition or production, less accumulated depreciation and any impairment
losses. Intangible assets with indefinite useful lives are not amor tized but are subject to an impairment test at least
annually and whenever there are indications.An intangible asset is recognised as such only if it is likely to generate future
income for the Company and its cost can be reliably measured.
The financial expenses of specific or generic funding of assets with installation periods exceeding one year accrued
before the assets are put to use are included in the acquisition or production cost.
In each case, the Company assesses the intangible asset’s useful life to be either finite or indefinite.
Those that have finite useful lives are amor tised over their estimated useful lives, and their recoverability is analyzed
when events or changes arise that indicate that the net carrying amount might not be recoverable. Amor tisation
methods and periods are reviewed at year end and adjusted prospectively where applicable.
Goodwill
Upon acquisition, goodwill is initially measured at cost, being the excess of the cost of the business combination over the
Company’s share in the net fair value of the acquiree’s identifiable assets, less the liabilities assumed.
Goodwill is not amor tised. Instead, cash-generating units or groups of cash generating units to which goodwill has
been assigned at the acquisition date are tested for impairment at least annually and any impairment loss is recognised
accordingly.
Goodwill impairment losses cannot be reversed in future periods.
Computer software
This includes the amounts paid for title to or the right to use computer programs; those developed in-house are
included only when they are expected to be used over several years.
Computer software maintenance costs are expensed directly in the year in which they are incurred.
Computer software is amortised over three years from the date on which it starts to be used.