Page 22 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
The license is considered to be an intangible asset with an indefinite useful life. Intangible assets with indefinite
useful lives are not amor tized, but are assessed for impairment at least annually or when there are indications of
impairment.
Audiovisual proper ty rights
The following intangible assets are recognized under this heading:
Proper ty rights on external audiovisual production
These rights are initially recognized at their acquisition price. If they are acquired in closed packages and the breakdown
of the individual value of each product is not provided, individual values are calculated based on a weighting factor
equivalent to the acquisition cost of products of a similar type and category, as if the acquisition were made on an
individual basis. If the contract stipulates the individual value of each product/title, this is taken directly as the asset
value.
The right is recognized at the time the material becomes available for broadcasting pursuant to the contract, and
is recognized under “Customer Advances” until it becomes available for broadcasting. In the case of several rights
associated with a single contract that become available during the same year but on different dates, the Company
recognizes the inclusion of the rights under the contract on the date on which the first right is available for
broadcasting.
These rights are amortized based on the number of screenings, as follows:
1. Films andTV movies (non-series).
• Contractual rights for two screenings:
First screening: 50% of acquisition cost.
Second screening: 50% of acquisition cost.
• Contractual rights for three or more screenings:
First screening: 50% of acquisition cost.
Second screening: 30% of acquisition cost.
Third screening: 20% of acquisition cost.
2. Other products (series).
• Contractual rights for two or more screenings:
First screening: 50% of acquisition cost.
Second screening: 50% of acquisition cost.
When a screening is sold to a third party, the value of the screening, calculated on the basis of the above percentages,
is amortized on the basis of the buyer’s territorial capacity to distribute the television signal. A cost of goods sold is
recognized based on the revenues generated in the territory where the screening has been sold and adjustments are
made to the unsold value of the screening
When audience figures for first screenings or channel programming indicate that the net carrying amount is not in line
with the estimated real value, specific impairment provisions are recognized for each product or right.