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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
Financial liabilities
A) Recognition and measurement
The Company classifies its financial liabilities into the following categories:
1. Trade and other payables
2. Financial liabilities held for trading
3. Other financial liabilities at fair value through profit or loss
Financial liabilities are initially measured at fair value, which, unless there is evidence to the contrary, is equivalent to the
fair value of the consideration received. For financial liabilities included in trade and other payables, directly attributable
transaction costs are part of the initial recognition; for other financial liabilities, these costs are recognized in the income
statement. Liabilities maturing in less than twelve months as of the balance sheet date are classified as current, and those
maturing at over twelve months as non-current
a.1) Trade and other payables
Trade and other payables comprises financial liabilities arising from the purchase of goods and services in the ordinary
course of the Company’s business.The category also includes non-trade payables, which are defined as financial liabilities
that, in addition to not being derivative instruments, have not commercial substance.
Upon initial recognition in the balance sheet, they 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 received, adjusted by directly
attributable transaction costs.
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 payables maturing within less than one year with no contractual interest rate, as well as called-up
payments on shares the amount of which is expected in the short term are carried at nominal value, both in the initial
recognition and in the subsequent recognition, when the effect of not discounting cash flows is not significant.
a.2) Financial liabilities held for trading:
A financial liability is considered to be held for trading when:
a) It is issued primarily for the purpose of being repurchased in the short term.
b) It forms 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.
Financial liabilities are initially measured at fair value, which, unless there is evidence to the contrary, is equivalent
to the fair value of the consideration received. Directly attributable transaction costs are directly recognized in the
income statement.
After initial recognition, these assets are measured 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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