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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
If the forecast transaction is no longer expected to take place, the amounts previously recognized in equity are transferred
to the income statement. If a hedge instrument expires, is sold, terminates or is exercised without being replaced or
renegotiated, or its designation as a hedge is revoked, the amounts previously recognized in equity continue to be
recognized under that heading until the transaction occurs. If the related transaction is not expected to take place, the
amount is recognized in the income statement.
The Company’s financial derivatives at December 31, 2013 and 2012 were classified as held for trading, with gains or
losses recognized in profit or loss.
Treasury shares
Treasury shares are recognized in equity as a decrease in “Capital and reserves” when acquired. No loss or gain is shown
in the income statement on sale or cancelation. Expenses incurred in connection with transactions with treasury shares
are recognized directly in equity as a decrease in reserves.
Inventories
In-house production programs are recognized as inventories.These programs are recognized at production cost, which
is determined by considering all costs attributable to the product which are incurred by the Company.
Advances paid for programs are also included.
They are expensed when the related programs are broadcast.
When the net realizable value of inventories is less than acquisition or production cost, the corresponding provision is
recognized in the income statement.
Cash and cash equivalents
This heading includes cash, current accounts, short-term deposits and purchases of assets under resale agreements that
meet the following criteria:
• They are readily convertible to cash.
• They mature within less than three months from the acquisition date.
• The risk of change in value is insignificant.
• They are part of the Company’s standard cash management strategy.
In terms of the cash flow statement, occasional bank overdrafts used as part of the Company’s cash management
strategy are recognized as a decrease in cash and cash equivalents.
Provisions
Provisions are recognized in the balance sheet when the Company has a present obligation (derived from a contract
or a legal provision or from an explicit or implicit obligation) as a result of past events, and a quantifiable outflow of
resources is likely to be required to settle the obligation.
Provisions are measured at the present value of the best estimate of the amount that an entity would have to pay to
settle the obligation at the balance sheet date or to transfer it to a third party at that time, with provision discount
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