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income statement 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 income
statement.
Amortisation of these programmes is recognised under “Programme Amortisation and
Other Procurements” in the consolidated income statement, on the basis of the
number of showings, at the rates shown below:
Amortisation rate
1st showing
90%
2nd showing
10%
The maximum period for the amortisation of series is three years, after which the
unamortised amount is written off.
Given their special nature, the series which are broadcast daily are amortised in full
when the first showing of each episode is broadcast.
2.
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 income statement at the time of the first showing.
3.
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 income statement, 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:
