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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
When a right to a production to which it is associated commences, the right is reclassified to the related rights account
and amortised accordingly.
Master copies and dubbing
Master copies refer to the media suppor ting the audiovisual rights and dubbing to the cost of dubbing original versions.
These are measured at cost and amor tised in the same propor tion as the audiovisual rights with which they are
associated.
Retransmission rights
The costs for the rights to broadcast spor t are recognised under “Procurements” on the separate income statement
at the cost stipulated in the agreement.The costs are recognised when each event is broadcast. Advance payments are
recognised in the balance sheet under “Current assets – Other current assets”.
Property, plant and equipment
Proper ty, plant and equipment are initially measured at either acquisition or production cost.
Following initial measurement, they are stated at cost less accumulated depreciation and any impairment losses.
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.
When, based on an analysis of the nature and conditions of a lease agreement, all risks and rewards incidental to
ownership of the leased item are considered to be substantially transferred to the Company, the agreement is classified
as a financial lease.Therefore, the ownership acquired through these financial leases is measured, based on its nature in
the PPE, at an amount equivalent to the lower of its fair value and the present value of the minimum payments set for th
at the beginning of the lease agreement, minus the accumulated depreciation and any impairment loss.There were no
finance lease agreements at year-end 2011 and 2010.
Expenses for repairs which do not prolong the useful life of the assets, as well as maintenance expenses, are recognised
in the income statement in the year incurred. Expenses incurred for expansion or improvements which increase the
productivity or prolong the useful life of the asset are capitalised as an increase in the value of the item.
Depreciation expenses are recognised in the income statement. The elements of this item are depreciated from the
time in which they are available to be brought into service. Proper ty, plant and equipment are depreciated by the
straight-line method during the following years of estimated useful life:
Ratio
Buildings
4 %
TV equipment
20 %
Plant
10-35 %
Tools
20 %
Automobile-related material
14 %
Furniture
10 %
Data-processing equipment
25 %
Sundry inventoriable materials
20 %