34
MEDIASET ESPAÑA COMUNICACIÓN, S.A.
Income and expenses
Revenue and expenses are recognized when the actual flow of the related goods and services occurs, regardless of
when the resulting monetary or financial flow arises.
Income from sales and services
Revenue is recognized according to the economic substance of the transaction.
Income is recognized when it is probable that the profit or economic benefits from the transaction will flow to the
Company and the amount of income and costs incurred or to be incurred can be reliably measured.
Revenue from the sale of goods or the rendering of services is measured at the fair value of the consideration received
or receivable stemming from those goods or services, less any discounts, rebates and similar items given by the company,
as well as indirect taxes on transactions reimbursed by third parties. Interest included in trade receivables maturing
in not more than one year that have no contractual rate of interest is included as an increase in value of the revenue,
because the effect of not discounting cash flows is not significant.
Leases
Leases in which the lessor maintains a significant portion of the risks and benefits of ownership of the leased asset
are treated as operating leases. Payments or collections carried out under contracts of this type are recognized in the
income statement throughout the period of the lease on an accrual basis.
Business combinations
Business combinations, understood as operations in which the Company acquires control of one or more businesses,
are recognized using the purchase method. Under the purchase method, assets acquired and liabilities assumed are
recognized, at the acquisition date, at fair value, provided that this value can reliably measured. In addition, the difference
between the cost of the business combination and the value of these assets and liabilities is recognized, in the income
statement, as goodwill, when the difference is positive, or as income, when the difference is negative. The criteria
contained in the section on intangible assets of these Notes apply to goodwill.
Provisional values are used to measure business combinations when the necessary valuation process has not been
completed prior to the financial year end. These values should be adjusted within a year from the date of acquisition.
Adjustments recognized to complete initial measurement are made retroactively, thus the resultant values are those
which would have been stated initially had the information been available, and therefore the comparative figures are
restated.
The cost of a business combination is determined by the sum of:
a)
The fair values on the acquisition date of the assets received, the liabilities incurred or assumed, and the equity
instruments issued by the acquirer. Nonetheless, when the fair value of the business acquired is more reliable,
this value is used to estimate the fair value of the compensation paid.
b)
The fair value of any contingent compensation which depends on future events or the fulfillment of certain
conditions. Such compensation must be recognized as an asset, a liability or equity depending on its nature.
Under no circumstances is the cost of the business combination to include expenses related to the issuing of equity
instruments or financial liabilities exchanged for assets acquired; these must be recognized according to the standard on
financial instruments.
1...,24,25,26,27,28,29,30,31,32,33 35,36,37,38,39,40,41,42,43,44,...201