126 / 140
44
16.5 Deferred tax assets recognised
The difference between the tax charge allocated to 2015 and to prior years and the tax charge
already paid or payable for such years, which is recognised under “Deferred Tax Assets”, arose as
a result of temporary differences derived from the following:
CHANGES IN DEFERRED
TAX ASSETS
Thousands of euros
2014 Additions Reductions
Other tax
receivables
Effect of
change in
tax rate
2015
Contingencies and charges
10,095
2,001
(1,953)
(658)
(929)
8,556
Accounts payable
613
-
(352)
(212)
73
122
Other items
2,311
-
(222)
(887)
687
1,889
Tax effect of assets at fair value
530
-
(544)
(201)
607
392
Financial hedging instruments
(777)
-
(198)
-
21
(954)
Total
12,772
2,001
(3,269)
(1,958)
459 10,005
The detail for 2014 is as follows:
CHANGES IN DEFERRED
TAX ASSETS
Thousands of euros
2013 Additions Reductions
Other tax
receivables
Effect of
change in
tax rate
2014
Contingencies and charges
10,747
2,175
(2,086)
38
(779) 10,095
Accounts payable
653
300
(795)
576
(123)
611
Other items
2,321
1,232
(16)
(143)
(1,081)
2,313
Tax effect of assets at fair value
2,541
-
(1,287)
-
(724)
530
Financial hedging instruments
(361)
-
(571)
-
155
(777)
Total
15,901
3,707
(4,755)
471 (2,552) 12,772
At 31 December 2015, the tax effect of the valuation adjustments relating to the hedging
instruments amounting to EUR (198) thousand was recognised under “Non-Current Assets”.
The deferred tax assets indicated above were recognised because the Company’s directors
considered that, based on their best estimate of the Company’s future earnings, including certain
tax planning measures, it is probable that these assets will be recovered.
On the basis of the estimate made by the Company’s directors of the timing of future profits for
the offset and use of these deferred tax assets, EUR 9,407 thousand were considered to be
recoverable in the long term while EUR 598 thousand were considered to be recoverable in the
short term. Both amounts are recognised under “Deferred Tax Assets”.
Also, on the basis of the aforementioned timing estimate of future profits, the directors consider
that there are no reasonable doubts as to the recovery of the amounts recognised in the
accompanying balance sheet within the statutory time periods and limits on the basis of the
prepared projections.
The key assumptions on which the cash flow projections are based relate mainly to advertising
markets, audience, advertising efficiency ratios and the evolution of expenses. Except for
advertising data, which is measured on the basis of external sources of information, the
assumptions are based on past experience and reasonable projections approved by Company
management and updated in accordance with the performance of the advertising markets. These
future projections cover the next ten years.
The Company performs sensitivity analyses in the event of reasonable changes in the key
assumptions used to determine the recoverability of these assets. Therefore, the sensitivity
analyses are prepared under various scenarios based on the variables that are considered to be
most relevant, i.e. advertising income, which mainly depends on the performance of the
advertising market, the investment share reached and the operating margin achieved. The
aforementioned analyses do not disclose any evidence of non-recoverability of the tax assets and
tax credits recognised.