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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
7.3. Impairment testing
Telecinco Cinema, S.A.U.
This subsidiary is engaged in cinematographic co-productions in compliance with the legal precepts that apply to
television concessionaires. Therefore, it is not possible to obtain reliably evaluate the amount recoverable either by
calculating the present value of the future cash flows from the investment or by estimating dividends to be received,
which depend on the number of productions made in the future, on the type of production, and on their commercial
success. For this reason, the Company has adjusted the valuation in accordance with the equity of the subsidiary as at
year-and 2011 and 2010. Given that the value of the capital and reserves of Telecinco Cinema, S.A.U. was negative at
31 December 2011 and at 31 December 2010, the par ticipative loan granted to Telecinco Cinema, S.A.U. has been
impaired for the amount of the Company’s negative capital and reserves (note 7.2).
Mediacinco Cartera, S.L.
As indicated above, Mediacinco Car tera, S.L. owns a 33% equity interest in the share capital of EdamAcquisition Holding
I Cooperative U.A., the parent company of Grupo Endemol, and has no other operating activities.
Once the impairment of Mediacinco Car tera, S.L. stemming from its interest in Grupo Endemol was recognised in its
financial statements, the Company’s interest in Mediacinco Car tera, S.L. was adjusted in accordance with its underlying
carrying amount.
Given that Mediacinco Car tera, S.L. has negative equity at 31 December 2011 and 2010, a provision for the same
amount as its negative equity has been set aside for the participative loan granted to Mediacinco Cartera, S.L.
Consider Mediacinco’s capital increase, subscribed to by the Company through compensation of the par ticipating loans
to restore its equity, a provision was recognised for the shareholding in Mediacinco Car tera for the amount of the share
in the investee’s equity.
PegasoTelevisión Inc.
At year end 2011 and 2010, this investment’s recoverable amount was determined from the market value of the merger
with a local operator.
Sogecable Media, S.L.U.
Given that Sogecable Media, S.L.U. had negative equity at 31 December 2011, a provision for the same amount as its
negative equity was recognised for the participating loan granted to Sogecable Media, S.L.U.
Conecta 5 Telecinco, S.A.U.
Given that Conecta 5 Telecinco, S.A.U. had negative equity at 31 December 2011, a provision for the same amount as
its negative equity was recognised for the participating loan granted to it.