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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
Leases
Leases in which the lessor maintains a significant portion of the risks and benefits of ownership of the leased asset
are treated as operating leases. Payments or collections carried out under contracts of this type are recognized in the
income statement throughout the period of the lease on an accrual basis.
Business combinations
Business combinations, understood as operations in which the Company acquires control of one or more businesses,
are recognized using the purchase method. Under the purchase method, assets acquired and liabilities assumed are
recognized, at the acquisition date, at fair value, provided that this value can reliably measured. In addition, the difference
between the cost of the business combination and the value of these assets and liabilities is recognized, in the income
statement, as goodwill, when the difference is positive, or as income, when the difference is negative. The criteria
contained in the section on intangible assets of these Notes apply to goodwill.
Provisional values are used to measure business combinations when the necessary valuation process has not been
completed prior to the financial year end. These values should be adjusted within a year from the date of acquisition.
Adjustments recognized to complete initial measurement are made retroactively, thus the resultant values are those
which would have been stated initially had the information been available, and therefore the comparative figures
are restated.
The cost of a business combination is determined by the sum of:
a) The fair values on the acquisition date of the assets received, the liabilities incurred or assumed, and the equity
instruments issued by the acquirer. Nonetheless, when the fair value of the business acquired is more reliable, this
value is used to estimate the fair value of the compensation paid.
b) The fair value of any contingent compensation which depends on future events or the fulfillment of certain
conditions. Such compensation must be recognized as an asset, a liability or equity depending on its nature.
Under no circumstances is the cost of the business combination to include expenses related to the issuing of equity
instruments or financial liabilities exchanged for assets acquired; these must be recognized according to the standard on
financial instruments.
Other fees paid to legal advisors or other professionals involved in the transaction are recorded as an expense in the
income statement. Under no circumstances are internal expenses generated as a result of any of these concepts to be
included in the cost of the business combination. Likewise, those incurred by the acquiring entity related to the business
combination are not to be included.
Generally, unless there is a more reliable valuation, the fair value of equity instruments or financial liabilities which are
provided as compensation for a business combination is the quoted price if these instruments are quoted on an active
market. If this is not the case, in the specific case of a merger and spin-off, the fair value is the value given to the shares
or participation in the acquiring company when determining the corresponding exchange ratio.
When the carrying amount of the assets provided by the acquirer as compensation is not the same as their fair value, if
applicable, the related difference is recognized in the income statement.
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