Page 128 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
3. PROPOSED DISTRIBUTION OF THE PROFIT OF THE PARENT
The distribution of the parent’s net profit for 2012 that its Board of Directors will propose for approval by the
shareholders at the annual general meeting and the distribution of the parent’s net profit in 2011 approved by the
annual general meeting are as follows:
Base for distribution 2012 2011
Profit for the year 63,254 137,264
Distribution
Legal reserve - -
Other reserves 50,093 67,605
Goodwill reserve 14,399 14,399
Dividends - 55,260
Total 64,492 137,264
At its meeting of February 22, 2012, the parent’s Board of Directors resolved to submit for approval by shareholders in
ordinary general meeting a proposal to pay out 55,260 thousand euros of dividends with a charge to 2011 profit.The
total dividend was 0.14 euros per share. This distribution was ratified at the General Shareholders’ Meeting on March
28, 2012.
4. ACCOUNTING POLICIES
The principal accounting policies used in preparing the Group’s consolidated financial statements were as follows:
4.1. Basis of consolidation
The Group’s consolidated financial statements include the financial statements of all the companies over which the Group
has control. Control is the power to govern a company’s financial and operating policies in order to obtain benefits from
its activities. All intra-Group balances and transactions were eliminated on consolidation. Associates, companies over
which the Group exercises significant influence but not control, were accounted for using the equity method.
However, given that the accounting principles and measurement bases applied when preparing the Group’s consolidated
financial statements for 2012 and 2011 (EU-IFRS) vary from those used by the companies composing the Group (local
standards), the necessary adjustments and reclassifications have been made on consolidation to standardise the most
significant measurement and recognition principles between the companies and to adapt these to EU-adopted IFRS.
All items of property, plant, and equipment, and intangible assets are linked to production and the generation of revenue
from business activities.