25 / 140
After initial recognition at cost, goodwill acquired in a business combination is measured
at cost less accumulated impairment losses. The impairment tests are performed
annually, or more frequently if events or changes in circumstances indicate that the
asset may have become impaired.
In accordance with IAS 36, goodwill acquired in a business combination is allocated, from
the acquisition date, to the cash-generating units of the Group that are expected to
benefit from the synergies of the business combination, irrespective of whether other
assets and liabilities of the acquiree are assigned to those cash-generating units.
The impairment of goodwill is measured as the excess of its carrying amount over the
recoverable amount of the cash-generating unit or units with which that goodwill is
associated.
An impairment loss recognised for goodwill must not be reversed in a subsequent period.
c)
Other intangible assets
Administrative concessions
“Administrative Concessions” includes mainly the cost assigned to administrative
concessions for radio broadcasting acquired by Uniprex, S.A. (Sole-Shareholder
Company). The amount recognised in the accompanying consolidated balance sheet
relates to the expenses incurred to directly obtain the concession from the State or from
the related public body. This amount is amortised on a straight-line basis over the initial
term of the radio licence.
Licences and trademarks
These accounts include the amounts relating to the licence and the trademark identified
in the purchase price allocation process arising from the merger with Gestora de
Inversiones Audiovisuales La Sexta, S.A. performed in 2012 (see Note 5).
The trademark is being amortised on a straight-line basis over its useful life, which is
estimated to be 20 years.
With regard to the licence, based on an analysis of all the relevant factors, the Group
considers that there is no foreseeable limit to the period over which it is expected to
generate net cash inflows for the Group. As a result, the licence was classified as an
intangible asset with an indefinite useful life and, therefore, it is not amortised. This
indefinite useful life assessment is reviewed at each reporting date and is consistent with
the related business plans.
In 2013 the Parent reviewed the licence and trademark valuations identified in the
purchase price allocation process performed within the framework of the aforementioned
merger. For this review, in which an independent expert participated, the standard
procedures for analyses of this kind were used, and it was concluded that the assigned
values were within reasonable valuation ranges. Consequently, it was not necessary to
modify the initial estimates or make any adjustments at 2013 year-end.
Since the asset has an indefinite useful life, a recoverability assessment was performed
at year-end. The key assumptions on which the cash flow projections are based relate
mainly to advertising markets, audience figures, advertising efficiency ratios and the
evolution of expenses. Except for advertising, the data of which are measured on the
basis of external sources of information, the assumptions are based on past experience
and reasonable projections approved by Parent management and updated in accordance
with the performance of the advertising markets. The measurement of this licence is
included in the "Television" cash-generating unit.