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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)
4.2.  Translation of financial statements of foreign subsidiaries
The consolidated annual financial statements are presented in euros, which is the Group’s functional and presentation
currency. Each entity in the Group determines its own functional currency and items included in the financial statements
of each entity are measured using that functional currency. The statement of financial position and separate income
statement headings of consolidated foreign companies are translated to euros at the year-end exchange rate,
which means:
• All assets, rights and liabilities are translated to euros at the exchange rate ruling at the close of the foreign subsidiaries’
accounts.
• Separate Income statement headings are translated at the average exchange rate.
The difference between the equity of foreign companies, including the balance of the separate income statement,
translated at year–end exchange rates and the equity obtained translating the assets, rights and liabilities by applying the
criteria set forth above are shown under ”Translation differences”, under equity in the consolidated statement of financial
position.
4.3. Related parties
The corresponding heading in the consolidated statement of financial position includes the balances with significant
shareholders and associates.The other balances arising from related-party transactions with directors and key management
personnel are classified under the appropriate consolidated statement of financial position headings.
4.4. Current/Non-current classification
In the accompanying consolidated statement of financial position, assets and liabilities maturing within no more
than 12 months are classified as current items and those maturing within more than 12 months are classified as
non-current items.
Audiovisual rights are classified in full as non-current assets. Note 8 details the rights that the Group expects to amortize
within a period of less than 12 months.
4.5. Property, plant, and equipment
Property, plant, and equipment are recognized using the cost model, which includes the cost of acquisition of the assets
and the additional expenses incurred until they have become operational. Property, plant, and equipment are measured
at the lower of cost and recoverable amount.
Repairs that do not lead to a lengthening of the useful life of the assets and maintenance expenses are charged directly
to the separate income statement.
The depreciation of property, plant, and equipment is calculated systematically, using the straight-line method, on the
basis of the useful life of the assets, based on the actual decline in value caused by their use and by wear and tear.
The depreciation rates used to calculate the decline in value of the various items of property, plant, and equipment are
as follows:
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