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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)
4.11. Impairment of non-current assets
4.11.1. Non-financial assets
The Group assesses periodically and at least at each reporting date whether there is any indication that an asset may be
impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates
the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair
value less costs to sell and its value in use.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining
fair value less costs to sell, an appropriate valuation model is used.
For assets that do not generate cash inflows that are largely independent of those from other assets or groups of assets,
the recoverable amount is determined for the cash-generating units to which the asset belongs.
Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount. Impairment losses are recognized in the separate income statement.
At each reporting date the group assesses if there are indications that a previously recognized impairment loss is
reversed or reduced. If this is the case, the Group estimates the asset’s recoverable amount. Except for goodwill, an
impairment loss previously recognized can be reverted if there has been a change in the circumstances that caused it.
Such reversal is recognized in the consolidated separate income statement.The increased amount cannot exceed the
carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for
the asset.
Goodwill and intangible assets
Goodwill and intangibles with indefinite lives are tested for impairment by determining 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 is less than the carrying amount, an impairment loss is recognized. At December 31, 2013, the
recoverable amount of the cash-generating units exceeded the carrying amount.
4.11.2. Financial assets
The Group assesses at each statement of financial position date whether a financial asset or group of financial assets is
impaired.
•
Assets carried at amortized cost
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.The amount of the loss shall be recognized in profit or loss.
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