Page 136 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
For assets that do not generate cash inflows that are largely independent of those from other assets or groups of assets,
the recoverable amount is determined for the cash-generating units to which the asset belongs.
Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount. Impairment losses are recognized in the separate income statement.
At each reporting date the group assesses if there are indications that a previously recognized impairment loss is
reversed or reduced. If this is the case, the Group estimates the asset’s recoverable amount. Except for goodwill, an
impairment loss previously recognized can be reverted if there has been a change in the circumstances that caused it.
Such reversal is recognized in the consolidated separate income statement. The increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for
the asset.
Goodwill and intangible assets
Goodwill and intangibles with indefinite lives are tested for impairment by determining the recoverable amount of the
cash-generating unit (or groups of cash-generating units) to which the goodwill relates. If the recoverable amount of
the cash-generating unit is less than the carrying amount, an impairment loss is recognized. At December 31, 2012, the
recoverable amount of the cash-generating units exceeded the carrying amount.
4.11.2. Financial assets
The Group assesses at each statement of financial position date whether a financial asset or group of financial assets is
impaired.
• Assets carried at amortized cost
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.The amount of the
loss shall be recognized in profit or loss.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to
an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed, to the
extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent
reversal of an impairment loss is recognized in profit or loss.
In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the
probability of insolvency or significant financial difficulties of the debtor) that the Group will not be able to collect all of
the amounts due under the original terms of the invoice.The carrying amount of the receivable is reduced through use
of an allowance account. Impaired debts are derecognized when they are assessed as uncollectible.
• Available-for-sale financial investments
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 profit or loss, is
transferred from equity to profit or loss. Reversals of impairment losses on debt instruments are reversed through profit
or loss; if the increase in fair value of the instrument can be objectively related to an event occurring after the impairment
loss was recognized in the separate income statement.