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FINANCIAL STATEMENTS AND MANAGEMENT REPORT 2015
The residual value, estimated at 2% of total cost, is amortized on a straight-line basis over three years from the time the
productions are available, unless these rights are sold to third parties during the amortization period, in which case the
remaining value is expensed to the revenues generated by the sale.
Amortization is based on the screenings, as follows:
•
Series of less than 60 minutes or more and/or broadcast daily.
First screening: 100% of the amortizable double value
•
Series of 60 minutes or more and/or broadcast weekly
First screening: 90% of the amortizable value
Second screening: 10% of the amortizable value, excepting promotional coupons.
In addition, the residual values of broadcasting rights over three years old, from the date of recording of the assets, are
written off.
When audience figures for first screenings or channel programming indicate that the net carrying amount is not in line
with the real estimated value, each specific product or right is amortized.
Distribution rights
These include the rights acquired by the Company for use in all windows in Spanish territory.
The cost of the right is that stated in the contract. Amortization of distribution rights is recognized on the basis of the
expected pattern of consumption in each window in which the right is used, as well as the estimated audiences for each
window.
When the free-to-air broadcasting or right commences, it is reclassified under “Audiovisual Property Rights.”
In the free-to-air window, the amortization of the rights is recognized in the same way as in the case of audiovisual
property rights, as detailed in the corresponding note.
Coproduction rights
These include the coproduction rights acquired by the Company for use in all windows.
The cost of the right is that stated in the contract. Amortization of distribution rights is recognized on the basis of the
expected pattern of consumption in each window in which the right is used, as well as the estimated audiences for each
window.
When the free-to-air broadcasting or right commences, it is reclassified under “Audiovisual Property Rights.”
In the free-to-air window, the amortization of the rights is recognized in the same way as in the case of audiovisual
property rights, as detailed in the corresponding note.
Rights: options, scripts, development
Necessary expenses to analyze and develop new projects are recognized under this heading. Scripts acquired are
measured at cost.
When a right to a production to which it is associated commences, the right is reclassified to the related rights account
and amortized accordingly.