Page 23 - 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)
In-house series production rights
These include productions that the Company, as the owner, may both broadcast and subsequently sell.
Their value includes both the costs incurred directly by the Company and recorded in the line “Work performed by the
entity and capitalized” of the Income Statement, and the amounts billed by third parties.
The residual value, estimated at 2% of total cost, is amortized on a straight-line basis over three years from the time the
productions are available, unless these rights are sold to third parties during the amortization period, in which case the
remaining value is expensed to the revenues generated by the sale.
Amortization is based on the screenings, as follows:
• Series of less than 60 minutes or more and/or broadcast daily.
First screening: 100% of the amortizable double value.
• Series of 60 minutes or more and/or broadcast weekly.
First screening: 90% of the amortizable value.
Second screening: 10% of the amortizable value, excepting promotional coupons.
In addition, the residual values of broadcasting rights over three years old, from the date of recording of the assets, are
written off.
When audience figures for first screenings or channel programming indicate that the net carrying amount is not in line
with the real estimated value, each specific product or right is amortized
Distribution rights
These include the rights acquired by the Company for use in all windows in Spanish territory.
The cost of the right is that stated in the contract. Amortization of distribution rights is recognized on the basis of the
revenue generated in each window in which the right is used and an estimate of future revenue from each window.
When the free-to-air broadcasting or right commences, it is reclassified under “Audiovisual Property Rights”.
In the free-to-air window, the amortization of the rights is recognized in the same way as in the case of audiovisual
property rights, as detailed in the corresponding note.
Coproduction rights
These include the coproduction rights acquired by the Company for use in all windows.
The cost of the right is that stated in the contract. Amortization of distribution rights is recognized on the basis of the
revenue generated in each window in which the right is used and estimated revenue from each window.
When the free-to-air broadcasting or right commences, it is reclassified under “Audiovisual Property Rights”.
In the free-to-air window, the amortization of the rights is recognized in the same way as in the case of audiovisual
property rights, as detailed in the corresponding note.