Page 139 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

139
FINANCIAL STATEMENTS AND MANAGEMENT. ANNUAL CORPORATE GOVERNANCE REPORT. BALANCE SHEETS 2012
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
where appropriate, the risks specific to the liability.When discounting is used, the increase in the provision due to the
passage of time is recognized as an interest expense.
4.20. Income tax
The parent, Mediaset España Comunicación, S.A., files consolidated income tax returns with the following subsidiaries:
• Grupo Editorial Tele 5, S.A.U.
• Telecinco Cinema, S.A.U.
• Publiespaña, S.A.U.
• Publimedia, S.A.U.
• Mediacinco Cartera, S.L.
• Conecta 5 Telecinco, S.A.U.
• Sogecable Editorial, S.A.U.
• Sogecable Media, S.A.U.
• Premiere Megaplex, S.A.U.
The income tax expense for the year is recognized in the separate income statement, except in cases in which it relates
to items that are recognized directly in the statement of other comprehensive income or equity, in which case the
related tax is also recognized in equity.
Deferred tax assets and liabilities are recognized on the basis of the temporary differences between the carrying
amounts of the assets or liabilities and their tax bases and are measured on the basis of the tax rates that are expected
to apply in the period when the asset is realized or the liability is settled. Deferred tax assets and liabilities arising from
changes in equity are charged or credited directly to equity. Deferred tax assets and tax loss and tax credit carryforwards
are only recognized when the probability of their future realization is reasonably assured and are adjusted subsequently
if it is not considered probable that taxable profits will be obtained in the future.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax
authorities taking the tax rates prevailing at the consolidated statement of financial position date and including any tax
adjustments from previous years.
The Group recognizes deferred tax liabilities for all taxable temporary differences, except:
• When the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.
• In respect of taxable temporary differences associated with investments in subsidiaries and associates, where the
timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the
temporary difference will not reverse in the foreseeable future.
The Group recognizes deferred income tax assets for all deductible temporary differences, carryforward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the
deductible temporary difference, and the carryforward of unused tax credits or losses can be utilized, except: