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4.13Relatedparty transactions
The Company performs all its transactions with related parties on an arm's length basis. Also, the
transfer prices are adequately supported and, therefore, the Company's directors consider that
there are no material risks in this connection that might give rise to significant liabilities in the
future.
4.14Non-current assets anddisposal groups classified as held for sale
The Company classifies a non-current asset or disposal group as held for sale when the decision to
sell it has been taken and the sale is expected to occur within twelvemonths.
These assets or disposal groups aremeasured at the lower of their carrying amount and fair value
less costs to sell.
Non-current assets classified as held for sale are not depreciated, but rather at the end of each
reporting period the related valuation adjustments aremade to ensure that the carrying amount is
not higher than fair value less costs to sell.
Income and expenses arising from non-current assets and disposal groups classified as held for
sale which do not qualify for classification as discontinued operations are recognised under the
related heading in the income statement on the basis of their nature.
4.15Current andnon-current items
Current assets are assets associated with the normal operating cycle, which in general is
considered to be one year; other assets which are expected to mature, be disposed of or be
realised within twelve months from the end of the reporting period, financial assets held for
trading, except for financial derivatives that will be settled in a period exceeding one year; and
cash and cash equivalents. Assets that do not meet these requirements are classified as non-
current assets.
Similarly, current liabilities are liabilities associated with the normal operating cycle, financial
liabilities held for trading, except for financial derivatives that will be settled in a period exceeding
one year; and, in general, all obligations that will mature or be extinguished at short term. All
other liabilities are classified as non-current liabilities.
5.- Business combinations
5.1Descriptionof the transaction
On 14 December 2011, following a resolution by its Board of Directors, Atresmedia Corporación de
Medios de Comunicación, S.A. (Atresmedia) entered into an agreement with Gestora de
Inversiones Audiovisuales La Sexta S.A. (La Sexta) and its shareholders (GAMP Audiovisual S.A.,
Grupo Televisa S.A.B. and Gala Desarrollos Comerciales S.L., as well as Imagina Media Audiovisual
S.L.), to merge the two television companies through a merger by absorption of La Sexta into
Atresmedia.
La Sexta engaged mainly in the management of a licence to provide audiovisual communication
services, for a period of fifteen years, pursuant to a resolution adopted by the Spanish Cabinet on
11 June 2010.
