41
FINANCIAL STATEMENTS, MANAGEMENT AND CORPORATE GOVERNANCE REPORT. 2012
The Company’s estimates on the future trend of the advertising market are based on market forecasts and historic
performance, as well as its correlation to economic conditions, using reasonable projections in accordance with exter-
nal information sources.
Projected income estimated for future years is calculated based on the abovementioned advertising market trend
calculation, while taking into account reasonable hypotheses regarding audience numbers.
Programming cost assumptions took into account forecasted internal and external audiovisual production costs, as
well as the amount of investment necessary to maintain audience levels.
These estimates cover a period of five years and for cash flows not considered, income to perpetuity is estimated
using a growth rate of around 2% (the percentage applied during the prior year). Estimated cash flows are discounted
at a rate that represents the current market assessment of the risk-free rate and the specific situation of the industry.
The discount rate used was slightly below 10% (2011: 9.3%).
Based on the assumptions used and the estimated cash flows calculated, no impairment was identified for either
goodwill or intangibles with indefinite lives.
Sensitivity to changes in assumptions
Management believes that no reasonably possible change in any of the above key assumptions would cause the carry-
ing value of the unit to materially exceed its recoverable amount.
7. INVESTMENT IN GROUP COMPANIES AND ASSOCIATES
The breakdown and movements in non-current investments in Group companies and associates in 2012 and 2011
are as follows:
2012
01/01/12
Additions
Disposals
Transfers 12/31/12
Cost
Equity instruments
918,101
1,483
-
-
919,584
Impairment losses
(328,261)
(1,980)
736
-
(329,505)
Total equity instruments
589,840
(497)
736
-
590,079
Receivables from group companies (Note 8)
40,772
952
-
-
41,724
Impairment losses
(33,627)
(1,018)
6,885
-
(27,760)
Total group companies
7,145
(66)
6,885
-
13,964
596,985
(563)
7,621
-
604,043
1...,31,32,33,34,35,36,37,38,39,40 42,43,44,45,46,47,48,49,50,51,...201