Page 33 - MEDIASET ESPAÑA / 2012. Financial Statements, Management and Corporate Governance Report

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FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT. 2012
In 2009, Canal Factoria de Ficción, S.A.U. was included.
In 2010,Advanced Media, S.A.U. was excluded as on March 25, 2010 it was agreed to dissolve and liquidate the company.
In 2011, Sogecable Media, S.L.U and Sogecable Editorial, S.L.U. were included. As a result of the merger of Agencia de
Televisión Latinoamericana de Servicios and Noticias España, S.A.U., they no longer form part of the tax group.
Premiere Megaplex, S.A.U. was included in 2012; due to their dissolution and liquidation, Atlas Media, S.A.U., Mi Cartera
Media, S.A.U., and Canal Factoría de Ficción, S.A.U. were excluded.
Income tax expense for the year is calculated as the sum of current tax resulting from applying the corresponding tax
rate to taxable profit for the year, less any applicable rebates and tax credits, taking into account changes during the year
in recognized deferred tax assets and liabilities.The corresponding tax expense is recognized in the income statement,
except when it relates to transactions recognized directly in equity, in which case the corresponding tax expense is
recognized in equity, and in business combinations in which is recorded as other assets and liabilities of the acquired
business.
Deferred income tax is recognized on all temporary differences at the balance sheet date between the tax bases of
assets and liabilities and their carrying amounts.The tax base of an asset or liability is the amount attributed to it for tax
purposes.
The tax effect of temporary differences is included in “Deferred tax assets” or “Deferred tax liabilities” on the balance
sheet, as applicable.
Deferred tax liabilities are recognized for all temporary differences, except where disallowed by prevailing tax legisla-
tion.
The Company recognizes deferred tax assets for all deductible temporary differences, carryforward of unused tax
credits and unused tax losses, to the extent that it is probable that future taxable profit will be available against which
these assets may be utilized, except where disallowed by prevailing tax legislation.
For business combinations in which deferred tax assets have not been accounted for separately at initial recognition
because they do not meet the criteria, the deferred tax assets which are recognized during the measurement period
and which arise from new information regarding matters and circumstances existing at the acquisition date will require
an adjustment of the related goodwill.After the abovementioned measurement period, or as a result of new information
regarding matters and circumstances existing at the acquisition date, they are written off or recognized directly in equity,
depending on the applicable accounting policy.
At each financial year end, the Company assesses the deferred tax assets recognized and those that have not yet been
recognized. Based on this analysis, the Company derecognizes the asset recognized previously if it is no longer probable
that it will be recovered, or it recognizes any deferred tax asset that had not been recognized previously, provided that
it is probable that future taxable profit will be available against which these assets may be utilized.
Deferred tax assets and liabilities are measured at the tax rate expected to apply to the period in which they reverse,
as required by enacted tax laws and in the manner in which it reasonably expects to recover the asset’s carrying value
or settle the liability.
Deferred tax assets and liabilities are not discounted and are classified as non-current assets or non-current liabilities,
respectively.