Page 127 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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FINANCIAL STATEMENTS AND MANAGEMENT. ANNUAL CORPORATE GOVERNANCE REPORT. BALANCE SHEETS 2012
If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal
payment and amortization) and its current fair value, less any impairment loss previously recognized in the separate
income statement.
• Useful life of property, plant, and equipment, and intangible assets
The Group periodically reviews the useful lives of its property, plant, and equipment, and its intangible assets,
prospectively adjusting the provisions for depreciation when the estimates change.
• Recoverability of deferred tax assets
If the Group or any of the Group companies present tax credits relating to deferred tax assets, the corresponding
estimates of tax loss carryforwards expected in future years are reviewed at year end to assess their recoverability
depending on their maturity and, if applicable, recognize the related impairment loss where recoverability is
not assured.
• Provisions
The Company recognizes provisions for risks in accordance with the accounting policy set forth in Note 4.19. The
Group has made judgments and estimates regarding the probability of the occurrence of said risks, as well as the
amount thereof, and has recognized a provision when the risk has been considered likely, estimating the cost that such
an occurrence would represent for it.
• Share based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. Estimating fair value for share-based payments requires
determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the
terms and conditions of the grant.This also requires determining the most appropriate inputs to the valuation model
including the expected life of the option, volatility and dividend yield and making assumptions about them.
• Channel increase through access to a multiple digital license
As explained in Note 16, the Supreme Court ruled against the authorization of the fourth channel granted to the
Company on April 3, 2010 (as well as an additional channel acquired by Sogecuatro, S.L. in 2010).The Directors and
their advisors have evaluated this situation, which is discussed in Note 16.