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18
Other changes not affecting the scope of consolidation in 2013:
-
On 4 July 2013, the Parent subscribed to the capital increase at Hola Televisión
América, S.L., amounting to EUR 679 thousand, although this did not give rise to an
increase in the ownership interest in this company.
c)
Comparative information
The information relating to 2013 contained in these consolidated financial statements is
presented solely for comparison purposes with the information relating to the year ended
31 December 2014.
3.
Accounting policies
The principal accounting policies used in preparing the Group's consolidated financial
statements, in accordance with EU-IFRSs, were as follows:
a)
Goodwill on consolidation
Goodwill arising on consolidation represents the excess of the cost of acquisition, plus the
non-controlling interests and fair value of any previous investment in the acquiree, over
the Group's interest in the fair value of the identifiable assets and liabilities of a subsidiary
at the date of acquisition.
The assets and liabilities acquired are measured provisionally at the date on which control
of the company is obtained, and the resulting value is reviewed within a maximum period
of one year from the acquisition date until the fair value of the assets and liabilities has
been calculated definitively. Any difference between the acquisition cost and the fair value
of the assets and liabilities acquired will be temporarily recognised as goodwill.
Goodwill acquired on or after 1 January 2004 is measured at acquisition cost and that
acquired earlier is recognised at the carrying amount at 31 December 2003. In both cases,
at the end of each reporting period goodwill is reviewed for impairment (i.e. a reduction in
its recoverable amount to below its carrying amount) and, if there is any impairment, the
goodwill is written down with a charge to “Impairment and Gains or Losses on Disposals of
Non-Current Assets” in the accompanying consolidated income statement.
An impairment loss recognised for goodwill must not be reversed in a subsequent period.
b)
Business combinations
Business combinations are accounted for using the acquisition method.
The application of the acquisition method requires, as indicated in IFRS 3, Business
Combinations, at the acquisition date, the recognition and fair value measurement of the
identifiable assets acquired, the liabilities assumed and any non-controlling interest in the
acquiree, and the recognition and measurement of a gain from a bargain purchase made
on very favourable terms.