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In assessing value in use, the estimated cash flows are discounted to their present value using
a pre-tax discount rate that reflects current market assessments of the time value of money
and the risks specific to the assets. In order to calculate the rate, the current value of money
and the risk premiums generally used by analysts for the business and geographical area are
taken into account, giving rise to future discount rates of 9%-10%.
The most sensitive variable is the growth of the radio advertising market, for which cumulative
annual growth of 2.6% was used for the projection period, which is in line a mild recovery in
the coming years. A change of 0.5% would change the amount by EUR 6 million. Also, a
variation of 0.5% in the discount rate would give rise to a change of EUR 9 million. Zero
perpetual growth was used. An increase of 0.5% would increase the amount by EUR 8 million.
In calculating such valuation adjustments as might be required for trade and other
receivables, the Company takes into account the date on which the receivables are due to be
settled and the equity position of related debtors.
The Company derecognises a financial asset when the rights to the cash flows from the
financial asset expire or have been transferred and substantially all the risks and rewards of
ownership of the financial asset have also been transferred, such as in the case of firm asset
sales.
However, the Company does not derecognise financial assets, and recognises a financial
liability for an amount equal to the consideration received, in transfers of financial assets in
which substantially all the risks and rewards of ownership are retained, such as in the case of
bill discounting.
4.4.2 Financial liabilities
Financial liabilities include accounts payable by the Company that have arisen from the
purchase of goods or services in the normal course of the Company's business and those
which, not having commercial substance, cannot be classed as derivative financial
instruments.
Accounts payable are initially recognised at the fair value of the consideration received,
adjusted by the directly attributable transaction costs. These liabilities are subsequently
measured at amortised cost.
The Company derecognises financial liabilities when the obligations giving rise to them cease
to exist.
4.4.3 Equity instruments
An equity instrument is a contract that evidences a residual interest in the assets of the
Company after deducting all of its liabilities.
Equity instruments issued by the Company are recognised in equity at the proceeds received,
net of issue costs.
Treasury shares acquired by the Company during the year are recognised at the value of the
consideration paid and are deducted directly from equity. Gains and losses on the acquisition,
sale, issue or retirement of treasury shares are recognised directly in equity and in no case are
they recognised in profit or loss.
4.4.4 Hedges
The Company uses derivative financial instruments to hedge the risks to which its business
activities, operations and future cash flows are exposed. Basically, these risks relate to
changes in exchange rates. The Company arranges hedging financial instruments in this
connection.