Page 139 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2013
(Expressed in thousand of euros)
3. PROPOSED DISTRIBUTION OF THE PROFIT
OF THE PARENT
The distribution of the parent’s net profit for 2013 that its Board of Directors will propose for approval by the
shareholders at the annual general meeting on April 9, 2014 is as follows:
Base for distribution 2013
Profit for the year (8,594)
Total (8,594)
Distribution
Prior year losses (8,594)
Total (8,594)
Companies are required to set aside a restricted reserve equal to the amount of goodwill shown in assets.An amount of
profit representing at least 5% of goodwill must be earmarked for this purpose. If no profit or insufficient profit is earned,
unrestricted reserves must be used for this purpose. As this year the parent reported losses, the related allocation for
goodwill will be made against voluntary reserves (14,399 thousand euros).
4. ACCOUNTING POLICIES
The principal accounting policies used in preparing the Group’s consolidated financial statements were as follows:
4.1. Basis of consolidation
The Group’s consolidated financial statements include the financial statements of all the companies over which the Group
has control. Control is the power to govern a company’s financial and operating policies in order to obtain benefits from
its activities. All intra-Group balances and transactions were eliminated on consolidation. Associates, companies over
which the Group exercises significant influence but not control, were accounted for using the equity method.
However, given that the accounting principles and measurement bases applied when preparing the Group’s
consolidated financial statements for 2013 and 2012 (EU-IFRS) vary from those used by the companies composing
the Group (local standards), the necessary adjustments and reclassifications have been made on consolidation to
standardize the most significant measurement and recognition principles between the companies and to adapt these
to EU-adopted IFRS.
All items of property, plant, and equipment, and intangible assets are linked to production and the generation of revenue
from business activities.