138
MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2013
(Expressed in thousand of euros)
•
Impairment of non-current assets
The Group assesses whether there are any indications of impairment for all non-financial assets at each reporting
date. Goodwill and other indefinite life intangible assets are tested for impairment annually and at any time when such
indications exists. Other non-financial assets are tested for impairment when there are indications that the carrying
amounts may not be recoverable.
If there is objective evidence that an impairment loss occur, the amount of the impairment loss is measured as the
difference between the carrying amount of the assets and the estimated future cash-flow discounting using a proper
discount rate.
•
Impairment of financial assets
The Group assesses at each statement of financial position date whether a financial asset or group of financial assets
is impaired including companies accounted for using the equity method (Notes 9 and 10).
If there is objective evidence that an impairment loss on assets carried at amortized cost has been incurred, the
amount of the loss is measured as the difference between the assets’ carrying amount and the present value of
estimated future cash flows discounted at the financial asset’s original effective interest rate (i.e. the effective interest
rate computed at initial recognition).The carrying amount of the asset is reduced through use of an allowance account.
If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal
payment and amortization) and its current fair value, less any impairment loss previously recognized in the separate
income statement.
•
Useful life of property, plant, and equipment, and intangible assets
The Group periodically reviews the useful lives of its property, plant, and equipment, and its intangible assets,
prospectively adjusting the provisions for depreciation when the estimates change
•
Recoverability of deferred tax assets
If the Group or any of the Group companies present tax credits relating to deferred tax assets, the corresponding
estimates of tax loss carryforwards expected in future years are reviewed at year end to assess their recoverability
depending on their maturity and, if applicable, recognize the related impairment loss where recoverability is not
assured.
•
Provisions
The Company recognizes provisions for risks in accordance with the accounting policy set forth in Note 4.19. The
Group has made judgments and estimates regarding the probability of the occurrence of said risks, as well as the
amount thereof, and has recognized a provision when the risk has been considered likely, estimating the cost that such
an occurrence would represent for it.
•
Share based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the
equity instruments at the date at which they are granted. Estimating fair value for share-based payments requires
determining the most appropriate valuation model for a grant of equity instruments, which is dependent on the
terms and conditions of the grant.This also requires determining the most appropriate inputs to the valuation model
including the expected life of the option, volatility and dividend yield and making assumptions about them.
1...,128,129,130,131,132,133,134,135,136,137 139,140,141,142,143,144,145,146,147,148,...216