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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
The depreciation rates used to calculate the decline in value of the various items of property, plant, and equipment are
as follows:
Rate
Buildings
3 %
TV equipment
20 %
Fixtures
10 %
Tools
20 %
Furniture
10 %
Computer hardware
25 %
Transportation equipment
14-15 %
Other items of property, plant, and equipment
20 %
4.6. Intangible assets
Intangible assets acquired separately are measured on initial recognition at cost.The cost of intangible assets in a business
combination is fair value at the date of the acquisition. Following initial recognition, intangible assets are carried at cost
less any accumulated amortization and any accumulated impairment losses. Intangible assets are recognized as such only
when the Group can demonstrate how the asset will generate future economic benefits and the ability to measure
reliably the expenditure during development.
•
Development expenditure
Expenditure on development activities is recognized as an expense as incurred, except in the case of computer software
projects that have reached the development stage.These expenses are measured at cost and are allocated to specific
projects until the projects have been completed, provided there is a reasonable assurance that they can be financed
through completion and there are sound reasons to foresee their technical success.
•
Concessions, trademarks and trade names
These relate mainly to licenses to use industrial property rights and television channel concessions.
The“Cuatro” trademark and the“Cuatro”multiplex operators’ license were identified in the Sogecuatro Group purchase
price allocation.The “Cuatro” trademark has an estimated useful life of 20 years.
The license is considered to be an intangible asset with an indefinite useful life. Intangible assets with indefinite useful
lives are not amortized, but are assessed for impairment at least annually or when there are indications of impairment.
•
Computer software
This includes the amounts paid for title to or the right to use computer programs. Computer software maintenance
costs are recognized with a charge to the income statement for the year in which they are incurred.
Computer software is amortized over three years from the date on which it starts to be used.