145
MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2013
(Expressed in thousand of euros)
Impairment is determined by assessing the recoverable amount of the cash-generating unit or groups of cash-generating
units to which the goodwill relates. If the recoverable amount of the cash-generating unit or group of cash-generating
units is less than the carrying amount, the Group recognizes an impairment loss.
Goodwill impairment losses cannot be reversed in future periods.
When an entity sells or otherwise disposes of an operation within a cash-generating unit to which goodwill has been
allocated, the goodwill associated with the operation should be included in the carrying amount of the operation when
determining the gain or loss on disposal and measured on the basis of the relative values of the operation disposed of
or sold and the portion of the cash-generating unit retained.
4.9. Non-current investments in companies accounted for using the equity
method
The companies over which the Group exercises significant influence, directly or indirectly, through an ownership interest
of 20% or more in the voting power of the investee are accounted for using the equity method.
Investments in an investee are initially recognized at cost, which will be increased or reduced on the basis of the Group’s
share of the investee’s equity, subsequent to the date of acquisition.
The value of these investments in the consolidated statement of financial position includes, where applicable, the
goodwill arising on the acquisition thereof.
The results of the investee are recognized in profit or loss in proportion to the Group’s percentage of ownership.
Where there has been a change recognized directly in the equity of the associate, the Group recognizes its share of any
change and discloses this, when applicable, in the statements of changes in equity.
The dividends received from investees reduce the carrying amount of the investment.
Following the application of the equity method and recognition of the value of the associate, if there is any indication
that the investment might have become impaired, pursuant to IAS 39 the relevant analysis and impairment tests
are carried out in order to recognize the impact of the impairment loss on the investment in the year in which it is
detected.
If the Group’s share of losses of the associate equals or exceeds its investment, it discontinues recognizing its share of
further losses. The interest in an associate is the carrying amount of the investment in the associate under the equity
method together with any non-current interest that, in substance, form part of the investor’s net investment in the
associate. Losses recognized under the equity method in excess of the Group’s investment in ordinary shares are
applied to the other components of the interest in the associate in the reverse order of their seniority (i.e. priority in
liquidation).
Upon loss of significant influence in the associate, the Group measures and recognizes any retaining investment at its fair
value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value
of the retained investment is recognized in the separate income statement.
In addition, amounts recognized in “Recyclable reserves in associates” are reclassified to the separate income statement,
with the investment in that company recognized under “Non-current financial assets” in the consolidated statement of
financial position.
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