Page 22 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

22
MEDIASET ESPAÑA COMUNICACIÓN, S.A.
Amortization is based on the screenings, as follows:
• Series of less than 60 minutes and/or broadcast daily.
First screening: 100% of the amortizable double value
• Series of less than 60 minutes and/or broadcast weekly
First screening: 90% of the amortizable value
Second screening: 10% of the amortizable value
In addition, the residual values of broadcasting rights over three years old, from the date of recording of the assets, are
written off.
When audience figures for first screenings or channel programming indicate that the net carrying amount is not in line
with the real estimated value, each specific product or right is amortized.
Distribution rights
These include the rights acquired by the Company for use in all windows in Spanish territory.
The cost of the right is that stated in the contract. Amortization of distribution rights is recognized on the basis of the
revenue generated in each window in which the right is used and an estimate of future revenue from each window.
When the free-to-air broadcasting or right commences, it is reclassified under “Audiovisual Property Rights.”
In the free-to-air window, the amortization of the rights is recognized in the same way as in the case of audiovisual
property rights, as detailed in the corresponding note.
Coproduction rights
These include the coproduction rights acquired by the Company for use in all windows.
The cost of the right is that stated in the contract. Amortization of distribution rights is recognized on the basis of the
revenue generated in each window in which the right is used and estimated revenue from each window.
When the free-to-air broadcasting or right commences, it is reclassified under “Audiovisual Property Rights.”
In the free-to-air window, the amortization of the rights is recognized in the same way as in the case of audiovisual
property rights, as detailed in the corresponding note.
Rights: options, scripts, development
Necessary expenses to analyze and develop new projects are recognized under this heading. Scripts acquired are
measured at cost.
When a right to a production to which it is associated commences, the right is reclassified to the related rights account
and amortized accordingly.
Master copies and dubbing
Master copies refer to the media supporting the audiovisual rights and dubbing to the cost of dubbing original versions.
These are measured at cost and amortized in the same proportion as the audiovisual rights with which they are
associated.