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projections approved by Parent management and updated in accordance with the
performance of the advertising markets.
Taking the correlation between the advertising market and the evolution of domestic
demand and private consumption as a reference, a retrospective analysis was conducted
using the historical data of these two variables, based on market consensus.
These future projections cover the next five years. The discount rate used to measure this
intangible asset was between 9% and 10%.
A variation of 0.5% in cumulative annual growth would give rise to a change in value of
EUR 18 million, while a 0.5% increase in the discount rate would give rise to a change of
EUR 22 million, and a 0.5% decrease in the discount rate would result in a change of EUR
25 million.
Computer software
The acquisition and development costs incurred vis-à-vis third parties in relation to the
basic computer systems used in the Group's management are recognised with a charge to
“Other Intangible Assets” in the consolidated balance sheet.
Computer system maintenance costs are recognised with a charge to the consolidated
income statement for the year in which they are incurred.
Computer software is amortised on a straight-line basis over a period of between three
and five years from the entry into service of each application, on the basis of its estimated
useful life.
Audiovisual productions
“Audiovisual Productions” relates to the costs incurred by the Group in relation to film
productions. The carrying amount includes the production costs incurred in relation to the
remuneration paid to co-producers and the launch and initial marketing costs. The Group
begins to amortise the films from the date of commercial release or from the date on
which the rating certificate is obtained. Each film production is amortised on an annual
basis over the first commercial cycle of the film, which the Group considers to be four
years. Accordingly, at each year-end the amortised percentage until that date is
approximately the same as the percentage of the income generated until then with
respect to the present value of the estimated total income for that period. The Group
recognises the appropriate impairment losses to write down the carrying amounts of
these film productions when it is considered necessary based on future marketing
expectations.
Since the activities relating to the acquisition, production and marketing of audiovisual
productions are part of the Group's normal operations, the amortisation charges to
consolidated profit or loss are included under “Programme Amortisation and Other
Procurements”. Acquisitions of productions are classified as investment activities in the
statement of cash flows since the related amounts are recovered over various years.
d)
Property, plant and equipment