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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
a.4) Other financial assets at fair value through profit or loss
This category also includes all financial assets that the Company has designated, at the time of initial recognition, for
inclusion.This designation is only made when it results in more relevant information, because:
a) It eliminates or significantly reduces inconsistencies in recognition or valuation that otherwise would exist due to
the measurement of assets or liabilities or due to the recognition of losses or gains thereon through the application
of different criteria.
b) A group of financial assets or financial assets and liabilities is managed, and the return thereon is evaluated on the
basis of the assets’ fair value, according to a documented investment or risk-management strategy, and, in addition,
information regarding the Group is provided on a fair-value basis to the key management personnel.
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
a.5) Investments in Group companies, joint ventures, and associates
his category includes equity investments in companies in which the entity exercises control (group companies), joint
control via by-law resolutions or contractual arrangements with one or more partners (jointly controlled entities) or
has significant influence (associates).
Upon initial recognition in the balance sheet, the investments are recognized at fair value, which, unless there is evidence
to the contrary, is the transaction price, which is equivalent to the fair value of the consideration paid.
Investments in Group companies are recognized, where applicable, based on accounting principles for transactions with
group companies and those used for determining the cost of business combinations in accordance with the accounting
policy governing business combinations.
When an investment is newly classified as a group company, joint venture or associate, the carrying amount of that
investment immediately prior to its new classification is taken as the cost of that investment. If applicable, any unrealized
value adjustments to the investment which have been previously recognized directly in equity are left in equity until the
investment is either sold or impaired.
Following initial measurement, these financial assets are measured at cost, less any accumulated impairment loss.
When a value must be assigned to these assets because they are derecognized or for another reason, the homogenous-
groups weighted average cost method is applied, with homogenous groups understood to be those that have the same
rights.Where preferential subscription or similar rights are sold or separated for the purpose of being exercised, the cost
of these rights decreases the carrying amount of the respective assets.
a.6) Available-for-sale financial assets
This category includes debt securities and equity instruments of other companies not classified in any of the preceding
categories.
After initial recognition, these assets are stated at fair value including any transaction costs relating to their sale. Changes
in fair value are recognized directly in equity until the investment is derecognized or determined to be impaired, at
which time the cumulative gain or loss is recognized in the income statement. However, impairment losses and foreign
exchange gains, and losses on monetary assets denominated in foreign currency are recognized in the income statement.
Interest, calculated according to the effective interest rate method and dividend income are also recognized in the
income statement.
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