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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
The Company reviews the assets’ residual value, useful lives and the depreciation methods of proper ty, plant and
equipment at year-end and adjusts them prospectively where applicable.
Impairment of non-current non-financial assets
The Company assesses at least at each year-end whether there is an indication that a non-current asset or, where
applicable, a cash-generating unit may be impaired. If any such indication exists, and in all events when goodwill or
intangible assets have indefinite useful lives, the Company estimates the asset’s recoverable amount.
The recoverable amount is the higher of the cash-generating unit’s (CGU) fair value less cost to sell and value in use.
When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired. To
assess value in use, expected future cash flows are discounted to their present value using risk-free market rates, adjusted
by the risks specific to the asset. For those assets that do not generate cash inflows largely independent of those from
other assets or groups of assets, the recoverable amount is determined for the CGU to which the asset belongs.
Impairment loss and its reversion are recognised in the income statement. Impairment loss is reversed only if the
circumstances giving rise to it have ceased to exist, except those related to goodwill. The reversal is limited to the
carrying amount that would have been determined had no impairment loss been recognised for the asset.
Goodwill and intangibles with indefinite lives are tested for impairment by determining the recoverable amount of the
cash-generating unit (or groups of cash-generating units) to which the goodwill relates. If the recoverable amount of
the cash-generating unit is less than the carrying amount, an impairment loss is recognised. At 31 December 2011, the
recoverable amount of the cash-generating units exceeded carrying amount.
Financial instruments
Financial assets
A) Recognition and measurement
Financial instruments are classified into one of the following categories for measurement purposes:
1. Loans and receivables
2. Held-to-maturity investments
3. Financial assets held for trading
4. Other financial assets at fair value through profit or loss
5. Investments in group companies, joint ventures and associates
6. Available-for-sale financial assets
Financial assets are initially recognised at fair value. Unless there is evidence to the contrary, fair value is the transaction
price.The transaction price is equivalent to the fair value of the consideration paid plus directly attributable transaction
costs, except, for financial assets held for trading and other financial assets at fair value through profit or loss, directly
attributable transaction costs are recognised directly in the income statement of the year in which the financial asset is
acquired. In addition, for financial assets held for trading and available-for-sale financial assets, preferential subscription and
any similar rights acquired will be part of the initial measurement.
a.1) Loans and receivables
Loans and receivables comprise financial assets arising from the sale of goods or the rendering of services in the ordinary
course of the Company’s business.The category also includes trade receivables, which are defined as financial assets that,
in addition to not being equity instruments or derivatives, have no commercial substance, have fixed or determinable
payments and are not traded on an active market.This category does not include financial assets for which the Company
might not substantially recover all of its initial investment due to circumstances other than credit impairment.