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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
a.3) Other financial liabilities at fair value through profit or loss
This category includes hybrid financial instruments, when it is not possible to separately measure the value of the
embedded derivative or to reliably determine its fair value, either at the time of acquisition or at a subsequent date,
or, when so elected, at the time of initial recognition, because the financial instrument has been measured at fair value.
This category also includes all financial liabilities 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 by applying
different criteria.
b) A group of financial liabilities or financial assets and liabilities is managed, and the return thereon is evaluated on
the basis of its 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.The Company maintained no investments of this type
at year end 2013 and 2012.
B) Derecognition of financial liabilities
The Company derecognizes a financial liability when the obligation under the liability is extinguished.And it also proceeds
to derecognize its own financial liabilities that it acquires, even with a view to reselling them in the future.
When debt instruments are exchanged, provided that their contractual terms are substantially different, the original
financial liability is derecognized and the new financial liability is recognized. Financial liabilities whose contractual terms
are substantially modified are treated in the same way.
The difference between the carrying amount of the derecognized financial asset (or part of it) and the compensation
paid, including any attributable transaction costs, which also includes any new asset transferred other than cash or liability
assumed, is recognized in the income statement in the year to which it relates.
When debt instruments are exchanged whose contractual terms are not substantially different, the original financial
liability is not derecognized, and the commissions paid are recognized as an adjustment to the carrying amount. The
amortized cost of a financial liability is determined by applying the effective interest rate, which is the rate the makes
the carrying amount of the financial liability on the modification date equal to the cash flows to be paid as per the
new terms.
Financial derivatives and hedges
Cash flow hedges are hedges to exposure to variability in cash flows attributable to a specific risk associated with
a recognized asset or liability or to a highly probable forecast transaction that may affect the income statement. The
effective portion of the gain or loss on the hedge instrument is recognized directly in equity, whereas the ineffective
portion is recognized in the income statement.
The amounts recognized in equity are transferred to the income statement when the hedged transaction affects profit
or loss, as well as when financial expense or revenue is recognized, or when a forecast sale or purchase takes place.
When the hedged item is the cost of a financial liability or asset, the amounts recognized in equity are transferred to the
initial carrying amount of the non-financial liability or asset.
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