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CONSOLIDATED FINANCIAL STATEMENTS AND CONSOLIDATED MANAGEMENT REPORT 2015
4.2. Translation of financial statements of foreign subsidiaries
The consolidated financial statements are presented in euros, which is the Group’s functional and presentation currency.
Each entity in the Group determines its own functional currency and items included in the financial statements of each
entity are measured using that functional currency.The statement of financial position and income statement headings
of consolidated foreign companies are translated to euros at the year-end exchange rate, which means:
• All assets, rights and liabilities are translated to euros at the exchange rate ruling at the close of the foreign
subsidiaries’ accounts.
• Separate income statement headings are translated at the average exchange rate.
The difference between the equity of foreign companies translated at historical exchange rate, including the balance of
the income statement, translated at average exchange rates and the equity obtained translating the assets, rights and
liabilities by applying the criteria set forth above are shown with the corresponding plus or minus sign under equity in
the consolidated statement of financial position.
4.3. Related parties
The corresponding heading in the consolidated statement of financial position includes the balances with significant
shareholders and associates. The other balances arising from related-party transactions with directors and key
management personnel are classified under the appropriate consolidated statement of financial position headings.
4.4. Current/Non-current classification
In the accompanying consolidated statement of financial position, assets and liabilities maturing within no more than 12
months are classified as current items and those maturing within more than 12 months are classified as non-current
items.
Audiovisual rights are classified in full as non-current assets. Note 8 details the rights that the Group expects to amortize
within a period of less than 12 months.
4.5. Property, plant, and equipment
Property, plant, and equipment are recognized using the cost model, which includes the cost of acquisition of the assets
and the additional expenses incurred until they have become operational. Property, plant, and equipment are measured
at the lower of cost and recoverable amount.
Repairs that do not lead to a lengthening of the useful life of the assets and maintenance expenses are charged directly
to the separate income statement.
The depreciation of property, plant, and equipment is calculated systematically, using the straight-line method, on the
basis of the useful life of the assets, based on the actual decline in value caused by their use and by wear and tear.