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c)
Available-for-sale financial assets: these include debt securities and equity
instruments of other companies that are not classified in any of the aforementioned
categories.
Initial recognition
Financial assets are initially recognised at the fair value of the consideration given, plus
any directly attributable transaction costs.
Subsequent measurement
Loans and receivables and held-to-maturity investments are measured at amortised cost.
Held-for-trading financial assets are measured at fair value, based on the expected
results, the estimated dividend payable, the price per share and the volatility thereof,
and the risk-free rate at year-end. The result of these fair value changes is recognised in
profit or loss.
Lastly, available-for-sale financial assets are measured at fair value and the gains and
losses arising from changes in fair value are recognised in equity until the asset is
disposed of or it is determined that it has become (permanently) impaired, at which time
the cumulative gains or losses previously recognised in equity are recognised in the net
profit or loss for the year. In this regard, (permanent) impairment is presumed to exist if
the market value of the asset has fallen by more than 40% or if there has been a
prolonged fall in market value over a period of 18 months without the value having
recovered.
At least at each reporting date the Group tests financial assets not measured at fair
value through profit or loss (accounts receivable) for impairment. Objective evidence of
impairment is considered to exist when the recoverable amount of the financial asset is
lower than its carrying amount. When this occurs, the impairment loss is recognised in
the consolidated statement of profit or loss. In calculating such valuation adjustments as
might be required for trade and other receivables, the Group takes into account the date
on which the receivables are due to be settled and the equity position of related debtors.
f)
Programme rights
Programme rights are measured, based on their nature, as follows:
1.
Inventoriable in-house productions (programmes produced to be re-run, such as
fiction series) are measured at acquisition and/or production cost, which includes
both external costs billed by third parties for programme production and for the
acquisition of resources, and internal production costs, which are calculated by
applying pre-established internal rates on the basis of the time during which
operating resources are used in production. The costs incurred in producing the
programmes are recognised, based on their nature, under the appropriate headings
in the consolidated statement of profit or loss and are included under “Programme
Rights” in the consolidated balance sheet with a credit to “Additions to Programme
Rights” under “Programme Amortisation and Other Procurements” in the
accompanying consolidated statement of profit or loss.
Amortisation of these programmes is recognised under “Programme Amortisation
and Other Procurements” in the consolidated statement of profit or loss, on the
basis of the number of showings. Following the analysis performed by the Parent
with respect to the actual showings of this type of programme, in 2014 a decision
was made to change the estimates used in relation to the amortisation of this type
of programme; series which are broadcast weekly are amortised at 99% of the