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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
IAS 24 Related party disclosures
This amendment is applied retroactively when key management personnel are not entity employees, but rather work
for a different entity devoted to managing the different Group entities, in which case it is necessary to detail transactions
with managing entities rather than with key management personnel. Management fees incurred must also be detailed.
This amendment is not relevant for the Group, as it does not receive management services from other entities.
IFRS 9 Financial instruments
In July of 2014, the IASB published the final version of IFRS 9, “Financial Instruments;” and replaced IAS 39 “Financial
Instruments: recognition and measurement,” as well as all the prior versions of IFRS 9. This standard covers the three
phases of financial instruments: classification, valuation, impairment, and hedge accounting. IFRS 9 indicates what is
applicable for the years commencing January 1, 2018, and permits early application, but has not yet been adopted by the
European Union. Apart from hedge accounting, it requires retroactive application, but no modification to comparative
information. Hedge accounting criteria are generally applied prospectively, excepting for limited exceptions.
The Group plans to adopt the new standards at the required date of application. In 2015, the Group carefully analyzed
the impacts of the three aspects of IFRS 9. This preliminary evaluation is based on currently available information, and
may be subject to changes resulting from further analyses or information becoming available in the future. In general, the
Group does not expect notable changes in its balance sheet or equity.
a) Classification and measurement
The Group does not foresee any important changes in its balance sheet or equity arising from the application of IFRS
9. It expects to continue measuring its financial assets at fair value as is its current practice.
The shares of unlisted entities are expected to be held in the foreseeable future.The Group expects to apply the option
for presenting changes in fair value under “Other comprehensive income” and therefore considers that the application
of IFRS 9 will not have a significant impact. If the Group does not apply this option, shares would be measured at fair
value with changes in the consolidated separate income statement, which would increase the volatility of the results.
Loans and trade receivables are held for contractual cash flow, and it is expected that these are solely cash flows which
only represent the payment of principal and interest.Therefore, the Group expects to continue to recognize amortized
cost in accordance with IFRS 9. However, the Group will perform a more in-depth analysis of the characteristics of
the contractual cash flows of these instruments prior to concluding on whether they meet the criteria for valuation at
amortized cost, in accordance with IFRS 9.
b) Impairment
IFRS 9 requires the Group to recognize expected credit losses on all its debt instruments, loans, and trade receivables,
either on a 12-month period or indefinitely.The Group expects to apply the simplified model, and recognize expected
losses over the lives of all its trade receivables.
IFRS 15 - Revenue from Contracts with Customers
It was published in May of 2014, and establishes a new five-step model which is applied to the accounting treatment of
income from contracts with customers. In accordance with IFRS 15, income is recognized at an amount which reflects
the consideration which an entity expects to have the right to receive in exchange for the transfer of goods or services
to a customer.
This new standard will amend all the previous standards regarding revenue recognition. Total or partial retroactive
application is necessary for the periods commencing January 1, 2018 or subsequently, allowing for early application,