26 / 214
26
MEDIASET ESPAÑA COMUNICACIÓN, S.A.
Master copies and dubbing
Master copies refer to the media supporting the audiovisual rights and dubbing to the cost of dubbing original versions.
These are measured at cost and amortized in the same proportion as the audiovisual rights with which they are
associated.
Retransmission rights
The costs for the rights to broadcast sport are recognized under “Procurements” on the income statement at the cost
stipulated in the agreement.The costs are recognized when each event is broadcast. Advance payments are recognized
in the balance sheet under “Current assets – Other current assets.”
Property, plant and equipment
Property, plant and equipment are initially measured at either acquisition or production cost.
Following initial measurement, they are stated at cost less accumulated depreciation and any impairment losses.
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.
When, based on an analysis of the nature and conditions of a lease agreement, all risks and rewards incidental to
ownership of the leased item are considered to be substantially transferred to the Company, the agreement is classified
as a financial lease.Therefore, the ownership acquired through these financial leases is measured, based on its nature in
the PPE, at an amount equivalent to the lower of its fair value and the present value of the minimum payments set forth
at the beginning of the lease agreement, minus the accumulated depreciation and any impairment loss.There were no
finance lease agreements at year end 2015 and 2014.
Expenses for repairs which do not prolong the useful life of the assets, as well as maintenance expenses, are recognized
in the income statement in the year incurred. Expenses incurred for expansion or improvements which increase the
productivity or prolong the useful life of the asset are capitalized as an increase in the value of the item.
Depreciation expenses are recognized in the income statement. The elements of this item are depreciated from the
time in which they are available to be brought into service. Property, plant and equipment are depreciated by the
straight-line method during the following years of estimated useful life:
Ratio
Buildings
3 %
TV equipment
20 %
Fixtures
10 %
Tools
20 %
Automobile-related material
14-15 %
Furniture
10 %
Data-processing equipment
25 %
Other items of property, plant, and equipment
20 %
The Company reviews the assets’ residual value, useful lives and the depreciation methods of property, plant and
equipment at year end and adjusts them prospectively where applicable.