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With these interest rate swaps the parties agree to swap, on predetermined dates, the
cash flows resulting from applying an interest rate to a nominal amount. The rate applied
to the payments of a portion is fixed, whereas the other portion is a floating rate (based
on market rates).
Hedging instruments are recognised in the consolidated balance sheet at fair value and the
changes therein are recognised directly in equity, for the effective portion, as provided for
in IAS 39.
With respect to foreign currency hedges, when the term of the broadcasting rights
designated as a hedged item commences, the associated gains or losses on the derivative
that had previously been recognised in equity are included in the initial recognition of the
asset and from then on any change in the fair value of the hedging instrument is
recognised directly in profit or loss for the year.
The corporate Group periodically tests the effectiveness of the outstanding hedges and the
ineffective portion is recognised immediately under financial profit or loss in the
consolidated statement of profit or loss.
If a hedged transaction is no longer expected to occur, or no longer qualifies for hedge
accounting, the net cumulative gain or loss recognised in equity is transferred to net profit
or loss for the year.
The Group has established the policy of categorising its assets and liabilities at fair value in
the different measurement hierarchy levels, on the basis of the availability of observable
market data, and only transfers items between levels when such inputs are not available.
In 2014 no transfers were made between the fair value hierarchy levels corresponding to
the Group's financial instruments.
j)
Treasury shares
All the treasury shares of the Parent at 31 December 2014 represented 0.508% of the
issued share capital at that date (the treasury share transactions performed in 2013 and
2012 are summarised in Note 11-e). The amount relating to these treasury shares is
recognised as a reduction of equity.
Acquisitions or sales of treasury shares (see Note 11-e) are charged or credited to equity
at the amount paid or received, respectively, and, therefore, the gains or losses arising
from these transactions are not reflected in the income statement but are recognised as
an addition to or a reduction of equity, respectively.
k)
Bank borrowings
Interest-bearing bank loans, credit facilities and overdrafts are recorded at the amount
received. Borrowing costs are recognised in the consolidated income statement on an
accrual basis using the effective interest method and are added to the carrying amount of
the liability to the extent that they are not settled in the period in which they arise.