29
At 2012 year-end, Unipublic, S.A. and its subsidiary Organizaciones Deportivas y
Culturales Unipublic, S.A.U. were classified as held for sale. In 2013 the aforementioned
investments were sold, although this did not have any impact on the consolidated income
statement.
h)
Classificationof financial assets and liabilities as current or non-current
In the accompanying consolidated balance sheet, financial assets and liabilities are
classified on the basis of the time in which it is estimated that they will be realised or
settled, i.e. financial assets and liabilities that are expected to be realised or settled over
the course of the company's normal business cycle or within no more than 12months are
classified as current items, and those which do not meet these requirements are classified
as non-current items.
Deferred tax assets and liabilities are classified as non-current regardless of when they are
expected to be realised or settled.
i)
Hedgingderivatives
All the derivatives held by the Group at 31 December 2013 were OTC derivatives, whose
prices are not quoted on organised futures and options markets and, therefore, it is
necessary to apply generally accepted valuation techniques, based on objective market
data, used in themeasurement of financial instruments of this nature.
Foreign currency hedging contracts are valued using the spot exchange rate and the
forward interest rate curves of the related currencies. The “market” foreign currency
hedge is calculated at year-end and is compared with the price of the foreign currency
hedge arranged.
Foreign exchange hedges
The derivative financial instruments held by the Group companies are basically cash flow
hedges arranged to mitigate the exposure of the cash flows associated with external
production rights to fluctuations in the US dollar/euro exchange rate.
Hedging instruments are recognised in the consolidated balance sheet at fair value and the
changes therein are recognised directly in equity, for the effective portion, as provided for
in IAS 39. When the term of the broadcasting rights designated as a hedged item
commences, the associated gains or losses on the derivative that had previously been
recognised in equity are included in the initial measurement of the asset and from then on
any change in the fair value of the hedging instrument is recognised directly in profit or
loss for the year.
The corporate Group periodically tests the effectiveness of the outstanding hedges and the
ineffective portion is recognised immediately under financial profit or loss in the
consolidated income statement.
If a hedged transaction is no longer expected to occur, or no longer qualifies for hedge
accounting, the net cumulative gain or loss recognised in equity is transferred to net profit
or loss for the year.
