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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the tax
authorities taking the tax rates prevailing at the consolidated statement of financial position date and including any tax
adjustments from previous years.
The Group recognizes deferred tax liabilities for all taxable temporary differences, except:
• When the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a tran-
saction that is not a business combination and, at the time of the transaction, affects neither the accounting profit
nor taxable profit or loss.
• In respect of taxable temporary differences associated with investments in subsidiaries and associates, where the
timing of the reversal of the temporary differences can be controlled by the parent and it is probable that the
temporary difference will not reverse in the foreseeable future.
The Group recognizes deferred tax assets for all deductible temporary differences, carryforward of unused tax credits
and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary difference, and the carryforward of unused tax credits or losses can be utilized, except:
• Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition
of an asset or liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss.
• In respect of deductible temporary differences associated with investments in subsidiaries and associates, defe-
rred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse
in the foreseeable future and taxable profit will be available against which the temporary difference can be
utilized.
The carrying amount of deferred tax assets is reviewed at each statement of financial position date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax
asset to be utilized. The Group also reviews unrecognized deferred tax assets at each statement of financial position
date and recognizes them to the extent that it has become probable that future taxable profit will allow the deferred
tax asset to be recovered.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income
tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the
same taxation authority.
4.22. Revenue and expense recognition
Revenue and expenses are recognized net of the related taxes, except in the case of non-deductible expenses.
Income and expenses are recognized when the goods or services represented by them take place, regardless of when
actual payment or collection occurs.
Revenue associated with the rendering of services is recognized by reference to the stage of completion of the services,
provided that the revenue can be measured reliably.
The Group’s main source of revenue is from advertising.This revenue is recognized in the period in which it is earned;
i.e. when the related advertisement is broadcast.
Expenses, including discounts and volume rebates, are recognized in the separate income statement in the period in
which they are incurred.