133 / 148
CHANGES IN DEFERRED TAX
ASSETS
Thousands of euros
2012
Additions Disposals
Other
2013
Contingencies and charges
9,609
3,217 (2,630)
551
10,747
Accounts payable
2,148
-
(955)
(540)
653
Other items
1,320
1,327
(611)
285
2,321
Tax effect of assets at fair value
9,483
- (6,845)
(97)
2,541
Financial hedging instruments
(209)
(152)
-
(361)
Total
22,351
4,544 (11,193)
199
15,901
At 31 December 2014, the tax effect of the valuation adjustments relating to the hedging
instruments amounting to EUR (571) thousand was recognised under “Non-Current Assets”.
The deferred tax assets indicated above were recognised because the Company's directors
considered that, based on their best estimate of the Company's future earnings, including
certain tax planning measures, it is probable that these assets will be recovered.
On the basis of the estimate made by the Company’s directors of the timing of future profits
for the offset and use of these deferred tax assets, EUR 14,429 thousand were considered to
be recoverable in the long term while EUR 1,472 thousand were considered to be recoverable
in the short term. Both amounts are recognised under “Deferred Tax Assets”. Also, on the
basis of the aforementioned estimate of the timing of future profits, the directors consider that
there are no reasonable doubts as to the recovery of the amounts recognised in the
accompanying balance sheet within the statutory time periods and limits.
Also, on the basis of the aforementioned timing estimate of future profits, the directors
consider that there are no reasonable doubts as to the recovery of the amounts recognised in
the accompanying balance sheet within the statutory time periods and limits on the basis of
the prepared projections.
The key assumptions on which the cash flow projections are based relate mainly to advertising
markets, audience, advertising efficiency ratios and the evolution of expenses. Except for
advertising data, which is measured on the basis of external sources of information, the
assumptions are based on past experience and reasonable projections approved by Company
management and updated in accordance with the performance of the advertising markets.
These future projections cover the next ten years.
The Company performs sensitivity analyses in the event of reasonable changes in the key
assumptions used to determine the recoverability of these assets. Therefore, the sensitivity
analyses are prepared under various scenarios based on the variables that are considered to
be most relevant, i.e. advertising income, which mainly depends on the performance of the
advertising market, the investment share reached and the operating margin achieved.
The changes in deferred tax assets recognised under "Other” include the difference between
the estimated tax for 2013 and the amount actually reported in the tax return, giving rise to
an adjustment of EUR 471 thousand to deferred tax assets. Also, the effect of this difference,
amounting to EUR (1,241) thousand, on the income tax expense is recognised under
“Negative Adjustments to Income Tax”.
At 31 December 2014, the Company had recognised unused tax credits amounting to EUR
75,577 thousand (of which EUR 4,801 thousand arise from the merger with La Sexta) and tax
loss carryforwards (arising from the merger with La Sexta in their entirety) amounting to EUR
177,064 thousand.
Under Transitional Provision 37 of Spanish Corporation Tax Law 27/2014, companies subject
to the limit on the depreciation and amortisation charge established in Article 7 of Law
16/2012, of 27 December, adopting various tax measures aimed at shoring up public finances
and boosting economic activity, will be entitled to a tax credit, to be deducted from the gross
tax payable, of 5% of the taxable profit, arising from the depreciation and amortisation not
deducted in the tax periods commencing in 2013 and 2014.