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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
5. Investments in group companies, joint ventures and associates.
6. Available-for-sale financial assets.
Financial assets are initially recognized at fair value. Unless there is evidence to the contrary, fair value is the transaction
price.The transaction price is equivalent to the fair value of the consideration paid plus directly attributable transaction
costs, except, for financial assets held for trading and other financial assets at fair value through profit or loss, directly
attributable transaction costs are recognized directly in the income statement of the year in which the financial asset is
acquired. In addition, for financial assets held for trading and available-for-sale financial assets, preferential subscription
and any similar rights acquired will be part of the initial measurement.
a.1) Loans and receivables
Loans and receivables comprise financial assets arising from the sale of goods or the rendering of services in the ordinary
course of the Company’s business.The category also includes trade receivables, which are defined as financial assets that,
in addition to not being equity instruments or derivatives, have no commercial substance, have fixed or determinable
payments and are not traded on an active market.This category does not include financial assets for which the Company
might not substantially recover all of its initial investment due to circumstances other than credit impairment.
Following initial recognition, financial assets included in this category are measured at amortized cost. Interest is
recognized in the income statement using the effective interest rate method.
Nevertheless, trade receivables that mature within less than one year with no contractual interest rate, as well as
advances and loans to personnel, dividends receivable and called-up payments on equity instruments, the amount of
which is expected in the short term, are carried at nominal value both at initial and subsequent remeasurement, when
the effect of not discounting cash flows is not significant.
Loans and receivables maturing in less than twelve months as of the balance sheet date are classified as current, and
those maturing at over 12 months as non-current.
a.2) Held-to-maturity investments
Held-to-maturity investments include debt instruments with fixed maturities and fixed or determinable payments
traded on active markets, and which the Company has the positive intention and the financial capacity to hold to
maturity.
Following initial recognition, financial assets included in this category are measured at amortized cost. Interest is
recognized in the income statement using the effective interest rate method.
a.3) Financial assets held for trading
A financial asset is considered to be held for trading when:
a) It is originated or acquired to be sold in the short term.
b) It is part of a portfolio of identified financial instruments that are managed together and for which there is evidence
of a recent pattern of short-term profit taking.
c) It is a derivative financial instrument, providing that is not a financial guarantee contract and has not been designated
as a hedging instrument.
After initial recognition, these assets are stated at fair value including any transaction costs relating to their sale. Changes
to fair value are recognized in the income statement for the year.The Company maintained no investments of this type
at year end 2013 and 2012.
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