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n)
Revenue and expense recognition
Revenue and expenses are recognised on an accrual basis.
Revenue is measured at the fair value of the consideration received or receivable and
represents the value of the goods and services provided in the normal course of business,
net of discounts, VAT and other sales-related taxes.
The Group companies basically obtain revenue from the sale of advertising space; this
revenue is recognised in the consolidated income statement when the related advertising
spot is broadcast.
o)
Income taxes; deferred taxes
The current income tax expense is calculated by aggregating the current tax arising from
the application of the tax rate to the taxable profit (tax loss) for the year, after deducting
the tax credits allowable for tax purposes, plus the change in deferred tax assets and
liabilities.
In general, deferred tax liabilities are recognised for all taxable temporary differences,
whereas deferred tax assets (including those relating to temporary differences and tax loss
and tax credit carryforwards) are only recognised to the extent that it is considered
probable that the consolidated companies will have sufficient taxable profits in the future
against which the deferred tax assets can be utilised.
Deferred tax assets and liabilities are calculated by applying the tax rates that are
expected to apply in the period when the asset is realised or the liability is settled. The
current rate is 30% for 2013 and subsequent years.
In 2001 the Group began to file consolidated tax returns. Atresmedia Corporación de
Medios de Comunicación, S.A. is the Parent of this consolidated tax group (see Note 22).
p)
Foreign currency transactions
The functional currency of the Parent and its investees is the euro. Therefore, transactions
in currencies other than the euro are deemed to be “foreign currency transactions” and are
recognised by applying the exchange rates prevailing at the date of the transaction.
q)
Consolidated statements of cash flows
The following terms are used in the consolidated statements of cash flows with the
meanings specified:
Cash flows: inflows and outflows of cash and cash equivalents, which are short-term,
highly liquid investments that are subject to an insignificant risk of changes in value.
Operating activities: the principal revenue-producing activities of the Company and other
activities that are not investing or financing activities.
Investing activities: the acquisition and disposal of long-term assets and other
investments not included in cash and cash equivalents.
