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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
Revenue from the sale of goods or the rendering of services is measured at the fair value of the consideration received
or receivable stemming from those goods or services, less any discounts, rebates and similar items given by the company,
as well as indirect taxes on transactions reimbursed by third par ties. Interest included in trade receivables maturing
in not more than one year that have no contractual rate of interest is included as an increase in value of the revenue,
because the effect of not discounting cash flows is not significant.
Leases
Leases in which the lessor maintains a significant por tion of the risks and benefits of ownership of the leased asset are
treated as operating leases. Payments or collections carried out under contracts of this type are recognised in the income
statement throughout the period of the lease on an accrual basis.
Business combinations
Business combinations, understood as operations in which the Company acquires control of one or more businesses,
are recognised using the purchase method. Under the purchase method, assets acquired and liabilities assumed are
recognised, at the acquisition date, at fair value, provided that this value can reliably measured. In addition, the difference
between the cost of the business combination and the value of these assets and liabilities is recognised, in the income
statement, as goodwill, when the difference is positive, or as income, when the difference is negative.The criteria contained
in the section on intangible assets of these Notes apply to goodwill.
Provisional values are used to measure business combinations when the necessary valuation process has not been
completed prior to the financial year end. These values should be adjusted within a year from the date of acquisition.
Adjustments recognised to complete initial measurement are made retroactively, thus the resultant values are those
which would have been stated initially had the information been available, and therefore the comparative figures are
restated.
The cost of a business combination is determined by the sum of:
a) The fair values on the acquisition date of the assets received, the liabilities incurred or assumed and the equity
instruments issued by the acquirer. Nonetheless, when the fair value of the business acquired is more reliable, this
value is used to estimate the fair value of the compensation paid.
b) The fair value of any contingent compensation which depends on future events or the fulfilment of cer tain
conditions. Such compensation must be recognised as an asset, a liability or equity depending on its nature.
Under no circumstances is the cost of the business combination to include expenses related to the issuing of equity
instruments or financial liabilities exchanged for assets acquired; these must be recognised according to the standard on
financial instruments.
Other fees paid to legal advisors or other professionals involved in the transaction are recorded as an expense in the
income statement. Under no circumstances are internal expenses generated as a result of any of these concepts to be
included in the cost of the business combination. Likewise, those incurred by the acquiring entity related to the business
combination are not to be included.
Generally, unless there is a more reliable valuation, the fair value of equity instruments or financial liabilities which are
provided as compensation for a business combination is the quoted price if these instruments are quoted on an active
market. If this is not the case, in the specific case of a merger and spin-off, the fair value is the value given to the shares
or participation in the acquiring company when determining the corresponding exchange ratio.