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production cost when the first showing of each episode is broadcast and at 1% when
the broadcast is repeated and series which are broadcast daily are amortised in full
when first broadcast. In any event, the maximum period for the amortisation of
programmes is three years, after which the unamortised amount is written off. Had
the criteria for the consumption of these programmes not been changed, the effect
on the consolidated statement of profit or loss for 2015 would have been EUR 1
million.
Non-inventoriable in-house productions (programmes produced to be shown only
once) are measured using the same methods and procedures as those used to
measure inventoriable in-house productions. Programmes produced and not shown
are recognised at year-end under “Programme Rights - In-House Productions and
Productions in Process” in the consolidated balance sheet. The cost of these
programmes is recognised as an expense under “Programme Amortisation and
Other Procurements” in the consolidated statement of profit or loss at the time of
the first showing.
2.
Rights on external productions (films, series and other similar productions) are
measured at acquisition cost. These rights are deemed to have been acquired when
the term of the right commences for the Group.
When payments to external production distributors are made in foreign currency,
these rights are recognised in the consolidated balance sheet by applying to the
foreign currency amount the spot exchange rate prevailing when the term of the
right commences.
Also, the initial value of all the external productions acquired by the Group for which
derivative instruments designated as cash flow hedges pursuant to IAS 39 were
arranged in order to hedge foreign currency risk includes:
the portion of the cumulative gain or loss recognised in equity (effective hedge)
on the hedging instrument at the beginning of the term of the right.
for payments made prior to the commencement of the term of the right, the
accumulated exchange gains or losses on that date.
The amortisation of the rights is recognised under “Programme Amortisation and
Other Procurements” in the consolidated statement of profit or loss, on the basis of
the number of showings, at the rates shown below, which are established on the
basis of the number of showings contracted:
FILMS
Number of showings contracted
1
2
3 or more
1st showing
100%
50%
50%
2nd showing
-
50%
30%
3rd showing
-
-
20%
SERIES
Number of showings contracted
1
2 or more
1st showing
100%
50%
2nd showing
-
50%
3.
Live broadcasting rights are measured at cost. The cost of these rights is recognised
as an expense under “Programme Amortisation and Other Procurements” in the