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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
Investments in equity instruments whose fair value cannot be reliably determined are measured at cost, less any
cumulative impairment.When a value must be assigned to these assets because they are derecognized or for another
other 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 exercising being exercised, the cost of these rights decreases the carrying amount of the respective assets.
This amount is the fair value or the cost of the rights consistent with the measurement of the associated financial assets.
B) Interest and dividends received from financial assets
Interest and dividends from financial assets accrued subsequent to acquisition are recognized as income. Interest must
be recognized using the effective interest rate method; dividends are recognized when the right to receive them is
established.
For these purposes, financial assets are recognized separately on initial measurement, based on maturity, accrued explicit
interest receivable at that date and the proposed dividends at the time the assets are acquired. For these purposes,
explicit interest refers to the contract interest rate applied to the financial instrument.
In addition, when distributed dividends are derived unmistakably from profit generated prior to the date of acquisition
given that the amounts of distributed dividends exceeded the profit generated by the associate since acquisition, the
dividends are not recognized as income and decrease the cost of the investment
C) Impairment of financial assets
At year end, the Company evaluates if its financial assets or group of financial assets are impaired.
Financial assets recognized at amortized cost (receivables and investments held to maturity)
Valuation adjustments are made, provided that there is objective evidence that the value of a financial asset, or group
of financial assets, recognized at amortized cost has suffered an impairment loss as a result of one or more events that
have occurred after their initial recognition causing a reduction or delay in estimated future cash flows.
The impairment loss on these financial assets is the difference between their carrying value and the present value of
the future cash flows expected to be generated, minus the effective interest rate calculated at the time of their initial
recognition. For financial assets with floating interest rates, the effective interest rate corresponding to the balance sheet
date is used, in accordance with the contractual conditions. To calculate the impairment losses of a group of financial
assets, models based on statistical methods or formulas are used. For investments held to maturity as a substitute for
the present value of future cash flows, the market value of the instrument may be used, provided that it is sufficiently
reliable to be considered representative of the value that the Company might recover.
Impairment losses, as well as the reversion thereof when the amount of the loss diminishes for reasons related to a
subsequent event, are recognized as revenue or expense, respectively, in the income statement. The reversal of an
impairment is limited to the carrying value of the credit that would have been recognized on the reversal dates had no
impairment loss been recognized.
Investments in Group companies, joint ventures and associates
When there is objective evidence that the carrying amount of an investment will not be recoverable, the required
valuation adjustments must be made.
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