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FINANCIAL STATEMENTS AND MANAGEMENT REPORT 2015
4. RECOGNITIONAND MEASUREMENT ACCOUNTING POLICIES
The main recognition and measurement accounting policies applied in the preparation of these financial statements are
as follows:
Intangible assets
Intangible assets are measured at cost of acquisition or production, less accumulated depreciation and any impairment
losses. Intangible assets with indefinite useful lives are not amortized but are subject to an impairment test at least
annually and whenever there are
indications.Anintangible asset is recognized as such only if it is likely to generate future
income for the Company and its cost can be reliably measured.
The financial expenses of specific or generic funding of assets with installation periods exceeding one year accrued
before the assets are put to use are included in the acquisition or production cost.
In each case, the Company assesses the intangible asset’s useful life to be either finite or indefinite.
Those that have finite useful lives are amortized over their estimated useful lives, and their recoverability is analyzed
when events or changes arise that indicate that the net carrying amount might not be recoverable. Amortization
methods and periods are reviewed at year end and adjusted prospectively where applicable.
Goodwill
Upon acquisition, goodwill is initially measured at cost, being the excess of the cost of the business combination over the
Company’s share in the net fair value of the acquiree’s identifiable assets, less the liabilities assumed.
Goodwill is not amortized. Instead, cash-generating units to which goodwill has been assigned at the acquisition date are
tested for impairment at least annually, and any impairment loss is recognized accordingly.
Goodwill impairment losses cannot be reversed in future periods.
Computer software
This includes the amounts paid for title to or the right to use computer programs; those developed in-house are
included only when they are expected to be used over several years.
Computer software maintenance costs are expensed directly in the year in which they are incurred.
Computer software is amortized over three years from the date on which it starts to be used.
Patents, licenses, and trademarks
These relate mainly to trademarks and concessions for television channels. The “Cuatro” trademark and the “Cuatro”
multiplex operators’ license were identified in the Sogecuatro Group purchase price allocation price. 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.