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consolidated income statement. In calculating such valuation adjustments as might be
required for trade and other receivables, the Group takes into account the date on which
the receivables are due to be settled and the equity position of related debtors.
f)
Programme rights
Programme rights are measured, based on their nature, as follows:
1.
Inventoriable in-house productions (programmes produced to be re-run, such as
fiction series) are measured at acquisition and/or production cost, which includes both
external costs billed by third parties for programme production and for the acquisition
of resources, and internal production costs, which are calculated by applying pre-
established internal rates on the basis of the time during which operating resources
are used in production. The costs incurred in producing the programmes are
recognised, based on their nature, under the appropriate headings in the consolidated
income statement and are included under “Programme Rights” in the consolidated
balance sheet with a credit to “Additions to Programme Rights” under “Programme
Amortisation and Other Procurements” in the accompanying consolidated income
statement.
Amortisation of these programmes is recognised under “Programme Amortisation and
Other Procurements” in the consolidated statement of profit or loss, on the basis of
the number of showings. Following the analysis performed by the Parent with respect
to the actual showings of this type of programme, a decision was made to change the
estimates used in relation to the amortisation of this type of programme; series
which are broadcast weekly are amortised at 99% of the production cost when the
first showing of each episode is broadcast and at 1% when the broadcast is repeated
and series which are broadcast daily are amortised in full when first broadcast. In
any event, the maximum period for the amortisation of programmes is three years,
after which the unamortised amount is written off. The impact of this change in 2014
was EUR 7.7 million.
2.
Non-inventoriable in-house productions (programmes produced to be shown only
once) are measured using the same methods and procedures as those used to
measure inventoriable in-house productions. Programmes produced and not shown
are recognised at year-end under “Programme Rights - In-House Productions and
Productions in Process” in the consolidated balance sheet. The cost of these
programmes is recognised as an expense under “Programme Amortisation and Other
Procurements” in the consolidated income statement at the time of the first showing.
3.
Rights on external productions (films, series and other similar productions) are
measured at acquisition cost. These rights are deemed to have been acquired when
the term of the right commences for the Group.
When payments to external production distributors are made in foreign currency,
these rights are recognised in the consolidated balance sheet by applying to the
foreign currency amount the spot exchange rate prevailing when the term of the right
commences.