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l)
Termination benefits
Under current employment legislation, the Group companies are required to pay
termination benefits to employees terminated under certain conditions. The Parent’s
directors do not expect any liabilities to arise other than those already recognised in this
connection.
m)
Provisions
The present obligations arising from past events which could give rise to a loss for the
Group which is uncertain as to its amount and timing are recognised as provisions in the
consolidated balance sheet at the present value of the most probable amount that it is
considered the Group will have to disburse to settle the obligation.
Provisions are quantified taking into consideration the best information available at the
date of preparation of the consolidated financial statements on the consequences of the
event giving rise to them and are reestimated at the end of each year.
n)
Revenue and expense recognition
Revenue and expenses are recognised on an accrual basis.
Revenue is measured at the fair value of the consideration received or receivable and
represents the value of the goods and services provided in the normal course of business,
net of discounts, VAT and other sales-related taxes.
The Group companies basically obtain revenue from the sale of advertising space; this
revenue is recognised in the consolidated income statement when the related advertising
spot is broadcast.
o)
Income taxes; deferred taxes
The current income tax expense is calculated by aggregating the current tax arising from
the application of the tax rate to the taxable profit (tax loss) for the year, after deducting
the tax credits allowable for tax purposes, plus the change in deferred tax assets and
liabilities.
In general, deferred tax liabilities are recognised for all taxable temporary differences,
whereas deferred tax assets (including those relating to temporary differences and tax loss
and tax credit carryforwards) are only recognised to the extent that it is considered
probable that the consolidated companies will have sufficient taxable profits in the future
against which the deferred tax assets can be utilised.
Deferred tax assets and liabilities are calculated by applying the tax rates that are
expected to apply in the period when the asset is realised or the liability is settled and will
be 28% by 2015 and 25% for 2016 and subsequents.
In 2001 the Group began to file consolidated tax returns. Atresmedia Corporación de
Medios de Comunicación, S.A. is the Parent of this consolidated tax group (see Note 22).