Page 126 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
• IFRS 9 Financial Instruments: effective for annual periods beginning on or after January 1, 2015 for the IASB.
• IFRS improvements: Effective from years beginning January 1, 2013 for the IASB.
• Amendments to IFRS 9 and IFRS 7 Mandatory Effective Date and Transition Disclosures: effective for annual periods
beginning on or after January 1, 2015 for the IASB.
• Amendment to IFRS 10 and 11, and IAS 27 “Transition guide:” Effective from years beginning January 1, 2013 for the
IASB.
• Amendment to IFRS 10 and 11, and IAS 27 “Credit institutions”: Effective from years beginning January 01, 2014 for
the IASB.
Although it is not possible to determine whether their initial application will or will not have a significant impact on these
consolidated financial statements, the Group is currently analyzing their potential impact.
2.3. Responsibility for the information and use of estimates.
The information in these financial statements is the responsibility of the Company’s directors.
In preparing the Group’s consolidated financial statements for 2012, certain estimates and assumptions were made on
the basis of the best information available at December 31, 2012 on the events analyzed. However, events that take place
in the future might make it necessary to change these estimates (upwards or downwards) in coming years. Changes
in accounting estimates would be applied prospectively, in accordance with the requirements of IAS 8, recognizing the
effects of the change in estimates in the related consolidated income statements.
Estimates and assumptions are reviewed on an ongoing basis.The impact of changes in accounting estimates is recognized
in the period in which the estimates are changed if they affect only that period or in the period of the changes and future
periods if they affect both current and future periods.The main hypothesis and assumptions regarding future events and
other uncertain sources of estimates at the date of preparation of the financial statements that may cause corrections
to assets and liabilities are as follows.
• Impairment of non-current assets
The Group assesses whether there are any indications of impairment for all non-financial assets at each reporting
date. Goodwill and other indefinite life intangible assets are tested for impairment annually and at any time when such
indications exists. Other non-financial assets are tested for impairment when there are indications that the carrying
amounts may not be recoverable.
If there is objective evidence that an impairment loss occur, the amount of the impairment loss is measured as the
difference between the carrying amount of the assets and the estimated future cash-flow discounting using a proper
discount rate.
• Impairment of financial assets
The Group assesses at each statement of financial position date whether a financial asset or group of financial assets
is impaired (Notes 9 and 10).
If there is objective evidence that an impairment loss on assets carried at amortized cost has been incurred, the
amount of the loss is measured as the difference between the assets’ carrying amount and the present value of
estimated future cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest
rate computed at initial recognition).The carrying amount of the asset is reduced through use of an allowance account.