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In accordance with IAS 36, goodwill acquired in a business combination is allocated, from
the acquisition date, to the cash-generating units of the Group that are expected to benefit
from the synergies of the business combination, irrespective of whether other assets and
liabilities of the acquiree are assigned to those cash-generating units.
The impairment of goodwill is measured as the excess of its carrying amount over the
recoverable amount of the cash-generating unit or units with which that goodwill is
associated.
An impairment loss recognised for goodwill must not be reversed in a subsequent period.
c)
Other intangible assets
Administrative concessions
“Administrative Concessions” includes mainly the cost assigned to administrative
concessions for radio broadcasting acquired by Uniprex, S.A. (Sole-Shareholder
Company). The amount recognised in the accompanying consolidated balance sheet
relates to the expenses incurred to directly obtain the concession from the State or from
the related public body. This amount is amortised on a straight-line basis over the initial
term of the radio licence.
Licences and trademarks
These accounts include the amounts relating to the licence and the trademark identified in
the purchase price allocation process arising from the merger with Gestora de Inversiones
Audiovisuales La Sexta, S.A. (see Note 4).
The trademark is being amortised on a straight-line basis over its useful life, which is
estimated to be 20 years.
With regard to the licence, based on an analysis of all the relevant factors, the Group
considers that there is no foreseeable limit to the period over which it is expected to
generate net cash inflows for the Group. As a result, the licence was classified as an
intangible asset with an indefinite useful life and, therefore, it is not amortised. This
indefinite useful life assessment is reviewed at each reporting date and is consistent with
the related business plans.
The Parent has reviewed the licence and trademark valuations identified in the purchase
price allocation process performed within the framework of the aforementioned merger.
For this review, which included the participation of an independent expert, the standard
procedures for analyses of this kind were used, and it was concluded that the assigned
values are within reasonable valuation ranges. Consequently, it was not necessary to
modify the initial estimates or make any adjustments at 2013 year-end.
Since the asset has an indefinite useful life, a recoverability assessment was performed at
year-end. The key assumptions on which the cash flow projections are based relate mainly
to advertising markets, audience figures, advertising efficiency ratios and the evolution of
expenses. Except for advertising, the data of which are measured on the basis of external
sources of information, the assumptions are based on past experience and reasonable