Page 151 - 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)
The income tax expense for the year is recognized in the separate income statement, except in cases in which it relates
to items that are recognized directly in the statement of other comprehensive income or equity, in which case the
related tax is also recognized in equity.
Deferred tax assets and liabilities are recognized on the basis of the temporary differences between the carrying
amounts of the assets or liabilities and their tax bases and are measured on the basis of the tax rates that are expected
to apply in the period when the asset is realized or the liability is settled. Deferred tax assets and liabilities arising from
changes in equity are charged or credited directly to equity. Deferred tax assets and tax loss and tax credit carryforwards
are only recognized when the probability of their future realization is reasonably assured and are adjusted subsequently
if it is not considered probable that taxable profits will be obtained in the future.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax
authorities taking the tax rates prevailing at the consolidated statement of financial position date and including any tax
adjustments from previous years.
The Group recognizes deferred tax liabilities for all taxable temporary differences, except:
• When the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction
that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
profit or loss.
• In respect of taxable temporary differences associated with investments in subsidiaries and associates, where the
timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the
temporary difference will not reverse in the foreseeable future.
The Group recognizes deferred income tax assets for all deductible temporary differences, carryforward of unused
tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which
the deductible temporary difference, and the carryforward of unused tax credits or losses can be utilized, except:
• Where the deferred income tax relating to the deductible temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss.
• In respect of deductible temporary differences associated with investments in subsidiaries and associates,
deferred tax assets are recognized only to the extent that it is probable that the temporary differences will
reverse in the foreseeable future and taxable profit will be available against which the temporary difference can
be utilized.
The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced
to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
income tax asset to be utilized. The Group also reviews unrecognized deferred income tax assets at each statement
of financial position date and recognizes them to the extent that it has become probable that future taxable profit will
allow the deferred tax asset to be recovered.
Deferred income tax assets and deferred income tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity
and the same taxation authority.