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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
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Impairment of financial assets
The Group assesses at each statement of financial position date whether a financial asset or group of financial assets is
impaired including companies accounted for using the equity method (Note 10).
If there is objective evidence that an impairment loss on assets carried at amortized cost has been incurred, the amount
of the loss is measured as the difference between the assets’ carrying amount and the present value of estimated future
cash flows discounted at the financial asset’s original effective interest rate.
If an available-for-sale asset is impaired, an amount comprising the difference between its cost (net of any principal
payment and amortization) and its current fair value, less any impairment loss previously recognized in the separate
income statement.
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Useful life of property, plant, and equipment, and intangible assets
The Group periodically reviews the useful lives of its property, plant, and equipment, and its intangible assets, prospectively
adjusting the provisions for depreciation when the estimates change.
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Recoverability of deferred tax assets
If the Group or any of the Group companies present tax credits relating to deferred tax assets, the corresponding
estimates of tax loss carryforwards expected in future years are reviewed at year end to assess their recoverability
depending on their maturity and, if applicable, recognize the related impairment loss where recoverability is not assured.
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Provisions
The Company recognizes provisions for risks in accordance with the accounting policy set forth in Note 4.20. The
Group has made judgments and estimates regarding the probability of the occurrence of said risks, as well as the
amount thereof, and has recognized a provision when the risk has been considered likely, estimating the cost that such
an occurrence would represent for it.
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Share based payments
The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity
instruments at the date at which they are granted. Estimating fair value for share-based payments requires determining
the most appropriate valuation model for a grant of equity instruments, which is dependent on the terms and conditions
of the grant.This also requires determining the most appropriate inputs to the valuation model including the expected
life of the option, volatility and dividend yield, the risk-free interest rate for the life of the option and making assumptions
about them.