Page 56 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
b.3) Derivates
The Company carries out derivative transactions to hedge currency risk on the purchases of audiovisual property rights
in the year and when necessary to hedge currency risk on trade transactions in other currencies with customers, which
are recognized in the Company’s balance sheet. As required by the corresponding measurement and recognition policy,
these derivatives are classified as “held for trading”.
The breakdown of the notional amounts of Company’s derivatives at December 31, 2013 is as follow:
Notional amount/
Maturity up to one year
Amount in thousand $
Fair
value
LIABILITIES $
( €/$)
exchange rate
Purchase of unmatured currency:
Purchase of dollars in euros 23,481 31,212 1.3791 (777)
Sale of dollars in euros - - - -
Net 23,481 31,212 1.3791 (777)
The breakdown of the notional amounts of Company’s derivatives at December 31, 2012 is as follows:
Notional amount/
Maturity up to one year
Amount in thousand $
Fair
value
LIABILITIES $
(€/$)
exchange rate
Purchase of unmatured currency:
Purchase of dollars in euros 26,201 34,050 1.3194 (417)
Sale of dollars in euros - - - -
Net 26,201 34,050 1.3194 (417)
The foreign currency derivatives associated with the property rights are measured at the difference between the
present value of the quoted foreign currency hedge at the forward exchange rate in the contract and the value of the
quoted foreign currency hedge at year end.
8.3. Risk management policy
The Company’s operations are exposed to different basic categories of financial risk:
1. Credit risk
Credit risk exists when a potential loss may arise from the Company’s counterparty not meeting its contractual
obligations, i.e., the possibility that financial assets will not be recovered at their carrying amount within the established
timeframe.