Page 185 - 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)
2013
Thousands of euros
2012
Thousands of euros
Non-current receivables 4,580 4,479
Trade and other receivables 216,722 201,762
Current receivables from Group companies and associates 3,041 809
Current investments 752 2,065
Cash and cash equivalents 112,774 90,692
337,869 299,806
For the purposes of credit risk Group management differentiates between financial assets arising from operations and
those arising from investments.
22.4.2. Operating activities
Most of the operating activities of the Group consist of advertising revenues.
Group management has developed a policy whereby credit limit by customer type and authorization levels in order to
approve transactions are established.
The financial assets considered as part of the operating activities are mainly trade receivables for sales and services.
From a business standpoint, the Group considers the advertisers to be the end customer; none of these represents
significant business revenue in terms of the Group’s total turnover. It is standard sector practice to use media agencies
as intermediaries between advertisers and the television channel offering the advertising space.
The Group constantly monitors the age of its debt, and there were no risk situations at year end.
22.4.3. Investing activities
The financial assets considered as investment activity are non-current loans (Note 11), non-current financial investments
(Note 11) and current financial investments (Note 13).Those notes provide information on the concentration of this
risk and the related maturities.
A Financial Risk Management Procedures Manual sets forth the general criteria governing investments of the Group’s
treasury surpluses, which, in broad terms, are as follows:
• The investments are made with institutions (whether domestic or foreign) of recognized financial solvency measured
based on their current ratings.
• The investments are placed in conservative products (bank deposits, debt repos, etc.,) on which, in general, the
repayment of the invested capital is guaranteed.
• Authorizations for the corresponding investments are limited by the powers granted to the group’s senior executives
and, in any event, are highly restricted (according to the amount, the Board Members, General Management and
Operations Director, and Financial Director).
• Under ordinary circumstances, the longest term is three months and the investments usually offer automatically
available funds.