Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. 2017 FINANCIAL STATEMENTS 13 Where an impairment loss subsequently reverses (not permitted in the specific case of goodwill), the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised as income. 4.4 Operating leases Income and expenses from operating leases are taken to profit or loss for the reporting period in which they are accrued. Any payment received or made on entering into an operating lease is considered as revenue received in advance or a prepayment and taken to profit or loss over the lease term in accordance with the pattern of economic benefits transferred or received. The leases in which the Company is a lessor consist basically of facilities which the Company has leased to companies in its group. 4.5 Financial instruments Financial instruments are classified on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the economic substance of the contractual arrangement and the definitions of a financial asset, a financial liability and an equity instrument. 4.5.1 Financial assets Classification- The financial assets held by the Company are classified into the following categories: a) Loans and receivables: financial assets arising on the sale of goods and the rendering of services in the course of the Company’s trade operations; and financial assets that are neither equity instruments nor derivatives, not arising on trade transactions, with fixed or determinable payments, and which are not traded in an active market. b) Equity investments in group companies and associates: group companies are companies related to the Company through relationships of control, and associates are those over which the Company exercises significant influence. c) Held-to-maturity investments: debt securities with fixed or determinable payments traded in an active market which the Company has the positive intention and ability to hold to maturity. d) Financial assets held for trading: assets acquired with the purpose of selling them in the near term or part of a portfolio of identified financial instruments for which there is evidence of a recent actual pattern of short-term profit-taking. This category includes financial derivatives except for those that are financial guarantee contracts (such as pledges) or have been designated as hedging instruments. e) Available-for-sale financial assets: debt securities and equity instruments acquired that do not qualify for inclusion in any of the other categories.