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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT.
2011
In 2011, Sogecable Media, S.L.U and Sogecable Editorial, S.L.U. were included. As a result of the merger described in
Note 20, they no longer form par t of Agencia deTelevisión Latinoamericana de Servicios y Noticias España, S.A.U.’s tax
group.
Income tax expense for the year is calculated as the sum of current tax resulting from applying the corresponding tax
rate to taxable profit for the year, less any applicable rebates and tax credits, taking into account changes during the year
in recognised deferred tax assets and liabilities.The corresponding tax expense is recognised in the income statement,
except when it relates to transactions recognised directly in equity, in which case the corresponding tax expense is
recognised in equity, and in business combinations in which is recorded as other assets and liabilities of the acquired
business.
Deferred income tax is recognised on all temporary differences at the balance sheet date between the tax bases of
assets and liabilities and their carrying amounts.The tax base of an asset or liability is the amount attributed to it for tax
purposes.
The tax effect of temporary differences is included in “Deferred tax assets” or “Deferred tax liabilities” on the balance
sheet, as applicable.
Deferred tax liabilities are recognised for all temporary differences, except where disallowed by prevailing tax legislation.
The Company recognises deferred tax assets for all deductible temporary differences, carryforward of unused tax
credits and unused tax losses, to the extent that it is probable that future taxable profit will be available against which
these assets may be utilized, except where disallowed by prevailing tax legislation.
For business combinations in which deferred tax assets have not been accounted for separately at initial recognition
because they do not meet the criteria, the deferred tax assets which are recognised during the measurement period
and which arise from new information regarding matters and circumstances existing at the acquisition date will require
an adjustment of the related goodwill.After the abovementioned measurement period, or as a result of new information
regarding matters and circumstances existing at the acquisition date, they are written off or recognised directly in equity,
depending on the applicable accounting policy.
At each financial year end, the Company assesses the deferred tax assets recognised and those that have not yet been
recognised. Based on this analysis, the Company derecognises the asset recognised previously if it is no longer probable
that it will be recovered, or it recognises any deferred tax asset that had not been recognised previously, provided that
it is probable that future taxable profit will be available against which these assets may be utilized.
Deferred tax assets and liabilities are measured at the tax rate expected to apply to the period in which they reverse,
as required by enacted tax laws and in the manner in which it reasonably expects to recover the asset’s carrying value
or settle the liability.
Deferred tax assets and liabilities are not discounted and are classified as non-current assets or non-current liabilities,
respectively.
Income and expenses
Revenue and expenses are recognised when the actual flow of the related goods and services occurs, regardless of
when the resulting monetary or financial flow arises.
Income from sales and services
Revenue is recognised according to the economic substance of the transaction.
Income is recognised when it is probable that the profit or economic benefits from the transaction will flow to the
Company and the amount of income and costs incurred or to be incurred can be reliably measured.