149
MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
NOTES TOTHE CONSOLIDATED FINANCIAL STATEMENTS AT DECEMBER 31, 2013
(Expressed in thousand of euros)
4.16. Financial liabilities
Financial liabilities are initially measured at fair value less attributable transaction costs. Following initial recognition,
financial liabilities are measured at amortized cost, with any differences between cost and redemption value recognized
in the consolidated separate income statement over the period of the borrowings, using the effective interest rate
method.
Liabilities maturing in less than 12 months from the consolidated statement of financial position date are classified as
current, while those with longer maturity periods are classified as non-current.
4.17. Derivative financial instruments
The Group uses financial derivatives to manage some its interest rate risk exposure.
Cash flow hedges are a hedge of the exposure to variability in cash flows attributable to a particular risk associated
with a recognized asset or liability or a highly probable forecast transaction, and could affect profit or loss.The effective
portion of the gain or loss on the hedging instrument is recognized directly in equity, while the ineffective portion is
recognized in the separate income statement.
Amounts taken to equity are transferred to the separate income statement when the hedged transaction affects profit
or loss such as when hedged financial income or expense is recognized or when a forecast sale or purchase occurs.
Where the hedged item is the cost of a non-financial asset or liability, the amounts taken to equity are transferred to
the initial carrying amount of the non-financial asset or liability.
If the forecast transaction is no longer expected to occur, the amounts previously recognized in equity are transferred
to the separate income statement. If a hedging instrument expires or is sold, terminated or exercised without
replacement or rollover, or if its designation as a hedge is revoked, amounts previously recognized in equity remain
in equity until the forecast transaction occurs. If the related transaction is not expected to occur, the amount is taken
to income.
The Group’s financial derivatives at December 31, 2013 and 2012 were classified as held for trading, with gains or losses
recognized in the consolidated separate income statement.
4.18. Derecognition of financial assets and liabilities
4.18.1. Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of similar financial assets) is
derecognized when:
• The rights to receive cash flows from the assets have expired.
• The Group retains the right to receive the cash flows from the asset but has assumed the obligation to pay the
received cash flows in full without material delay to a third party under a pass-through arrangement.
• The Group has transferred its rights to receive cash flows from the asset and either (a) the Group has transferred
substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially
all the risks and rewards of the asset, but has transferred control of the asset.
1...,139,140,141,142,143,144,145,146,147,148 150,151,152,153,154,155,156,157,158,159,...216