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Taking the correlation between the advertising market and the evolution of domestic
demand and private consumption as a reference, a retrospective analysis was conducted
using the historical data of these two variables, based on market consensus.
These future projections cover the next five years. The discount rate used to measure
this intangible asset was between 9% and 10%. Zero perpetual growth was used.
The sensitivity analysis shows that a 1.0% increase in the perpetual growth rate gives
rise to an increase in value of EUR 40 million, while a decrease of 1.0% gives rise to a
decrease of EUR 32 million. Also, a 1.0% increase in the discount rate gives rise to a
decrease of EUR 64 million, and a 1.0% decrease in the discount rate gives rise to an
increase of EUR 81 million. The changes in value used in all these sensitivity analyses
would not reduce the recoverable amount to below the carrying amount.
Computer software
The acquisition and development costs incurred vis-à-vis third parties in relation to the
basic computer systems used in the Group's management are recognised with a charge
to “Other Intangible Assets” in the consolidated balance sheet.
Computer system maintenance costs are recognised with a charge to the consolidated
statement of profit or loss for the year in which they are incurred.
Computer software is amortised on a straight-line basis over a period of between three
and five years from the entry into service of each application, on the basis of its
estimated useful life.
Audiovisual productions
“Audiovisual Productions” relates to the costs incurred by the Group in relation to film
productions. The carrying amount includes the production costs incurred in relation to
the remuneration paid to co-producers and the launch and initial marketing costs. The
Group begins to amortise the films from the date of commercial release or from the date
on which the rating certificate is obtained. Each film production is amortised on an
annual basis over the first commercial cycle of the film, which the Group considers to be
four years. Accordingly, at each year-end the amortised percentage until that date is
approximately the same as the percentage of the income generated until then with
respect to the present value of the estimated total income for that period. The Group
recognises the appropriate impairment losses to write down the carrying amounts of
these film productions when it is considered necessary based on future marketing
expectations.
Since the activities relating to the acquisition, production and marketing of audiovisual
productions are part of the Group's normal operations, the amortisation charges to
consolidated profit or loss are included under “Programme Amortisation and Other
Procurements”. Acquisitions of productions are classified as investment activities in the
statement of cash flows since the related amounts are recovered over various years.
d)
Property, plant and equipment
Land and buildings acquired for the performance of the Group's business activity or for
administrative purposes are stated in the consolidated balance sheet at acquisition or
production cost, less any accumulated depreciation and any recognised impairment
losses.
Replacements or renewals of complete items that lead to a lengthening of the useful life
of the assets or to an increase in their economic capacity are recognised as additions to
property, plant and equipment, and the items replaced or renewed are derecognised.
Periodic maintenance, upkeep and repair expenses are recognised in the statement of
profit or loss on an accrual basis as incurred.