Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. 2017 FINANCIAL STATEMENTS 12 2 December, which modified the measurement criteria for intangible assets and states that asset are amortised over a period of 10 years when the useful lives of the assets cannot be estimated reliably. Computer software The Company recognises costs incurred to acquire or develop software computer programs, including website development costs, under this item. Computer software maintenance costs and payments made to develop websites for promotional or product or service advertising reasons are recognised with a charge to the statement of profit or loss for the year in which they are incurred. Computer software is amortised on a straight-line basis over three to five years. 4.2 Property, plant and equipment Property, plant and equipment are measured initially at cost of acquisition or production, and subsequently reduced by the related accumulated depreciation and any impairment losses, as indicated in this note. Expenses for repairs and maintenance of items of property, plant and equipment are taken to the statement of profit or loss in the year incurred. However, costs incurred to improve items which increase capacity or efficiency, or extend the useful life of the asset are capitalised as an increase in the cost of the related asset. The Company depreciates property, plant and equipment using the straight-line method at annual rates based on the following years of estimated useful life of the related assets: Years of estimated useful life Buildings 33 Plant 5 to 8 Computer hardware 3 to 5 Other fixtures 6 to 10 Other items of property, plant and equipment 6 to 10 4.3 Impairment of intangible assets and property, plant and equipment The Company assesses the existence of indications of potential impairment of the non- financial assets subject to amortisation and depreciation, in order to check whether carrying amount exceeds recoverable amount, understood to be the higher of fair value less costs of disposal and value in use. For property, plant and equipment, impairment is calculated item by item, on an individual basis.