Consolidated Annual Accounts 2017

3 Revenue (Euros 799,712 thousand) See notes 18.1 and 19.1 to the annual accounts Key Audit Matter How the Matter was Addressed in Our Audit The Company sells advertising to Group companies. Accounting legislation generally requires that these transactions be recognised at the fair value of the consideration received. Any difference between this value and the agreed amount is recognised in accordance with the underlying economic substance. The determination of the prices applied to advertising sales transactions between Group companies and of their fair value requires a high level of judgement due to the intrinsic difficulty in estimating this value. In view of the significance of the volume of advertising sales to Group companies and the high level of judgement required to estimate the fair value of these transactions, this has been considered a key audit matter. Our audit procedures included the following: – We assessed the design and implementation of the key controls relating to the process of identifying, measuring and documenting transactions with related parties. – We assessed, with the involvement of our specialists, the reasonableness of the methodology used by the Company to determine the prices at which the advertising sales transactions with Group companies are performed, as well as the documentation confirming that these transactions have been carried out on an arm's length basis. – We obtained confirmation of advertising sales transactions between Group companies performed during the year. – We assessed whether the information disclosed in the notes to the annual accounts in this regard is appropriate, in accordance with the criteria set out in the financial reporting framework applicable to the Company. Other Information: Directors’ Report_______________________________________ Other information solely comprises the 2017 directors' report, the preparation of which is the responsibility of the Company's Directors and which does not form an integral part of the annual accounts. Our audit opinion on the annual accounts does not encompass the directors' report. Our responsibility regarding the content of the directors' report is defined in the legislation regulating the audit of accounts, which establishes two different levels: a) A specific level applicable to certain information included in the Annual Corporate Governance Report, as defined in article 35.2. b) of Audit Law 22/2015, which consists solely of verifying that the aforementioned information has been provided in the directors' report and, if not, to report on this matter.