Page 135 - 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
The financial assets held by the Group companies are classified as:
• Held-to-maturity investments: financial assets with fixed or determinable payments and fixed maturity that the Group
has the positive intention and ability to hold from the date of purchase to the date of maturity.They do not include
loans and accounts receivable originated by the company. After initial measurement held-to-maturity investments are
measured at amortized cost using the effective interest method.
• Originated loans and receivables: financial assets originated by the companies in exchange for supplying cash, goods
or services directly to a debtor. Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. Such financial assets are carried at amortized cost using the
effective interest rate method. Gains and losses are recognized in the consolidated income statement when the loans
and receivables are derecognized or impaired, as well as through the amortization process. Loans and receivables in
the consolidated statement of financial position maturing in 12 months or less from the consolidated statement of
financial position date are classified as current and those maturing in over 12 months as non-current.
• Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are
not classified in any of the three preceding categories. After initial measurement, available-for-sale financial assets are
measured at fair value with unrealized gains or losses recognized directly in equity until the investment is derecognized,
at which time the cumulative gain or loss recorded in equity is recognized in the separate income statement, or
determined to be impaired, at which time the cumulative loss recorded in equity is recognized in the separate income
statement.
• Financial assets at fair value through profit and loss: Financial assets classified as held for trading are included in the
category financial assets at fair value through profit and loss. Financial assets are classified as held for trading when
they are acquired for the purpose of selling in the near future. Derivatives are also classified as held for trading unless
they are effective hedging instruments and identified as such. Gains or losses on financial assets held for trading are
recognized in profit or loss.The Group has no held-for-trading financial assets.
The fair value of a financial instrument on a given date is taken to be the amount for which it could be bought or sold
on that date by two knowledgeable, willing parties in an arm’s length transaction acting prudently. The most objective
and common reference for the fair value of a financial instrument is the price that would be paid for it on an organized,
transparent and deep market (“quoted price” or “market price”). If this market price cannot be determined objectively
and reliably for a given financial instrument, its fair value is estimated on the basis of the price established in recent
transactions involving similar instruments or of the discounted present value of all the future cash flows (collections or
payments), applying a market interest rate for similar financial instruments (same term, currency, interest rate, and same
equivalent risk rating).
4.11. Impairment of non-current assets
4.11.1. Non-financial assets
The Group assesses periodically and at least at each reporting date whether there is any indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair
value less costs to sell and its value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determin-
ing fair value less costs to sell, an appropriate valuation model is used.