Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. 2017 FINANCIAL STATEMENTS 17 - the portion of the cumulative gain or loss on the hedging instrument recognised in equity (effective hedge) at the beginning of the term of the right; and - the accumulated exchange gains or losses on that date for payments made prior to the commencement of the term of the right. The amortisation of the rights is recognised under “Programme amortisation and other” in the 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% There are no assets specifically acquired to be amortised within a period of over 12 months. All the programme assets are subject to amortisation, i.e. included in the operating cycle, once they are recognised as assets. It is not possible to ascertain which assets will be amortised beyond the period of 12 months. The programming policy has differing degrees of specificity depending on when the programme schedules are prepared. The Company estimates the total amount which would be amortised beyond that year, based on past experience and the approximate estimate of amortisation. - 4.- Live broadcasting rights are measured at cost. The cost of these rights is recognised as an expense under “Programme amortisation and other” in the statement of profit or loss at the time of broadcast of the event on which the rights were acquired. Raw and other materials Dubbings, sound tracks, titles and signature tunes of external productions are stated at acquisition or production cost. The amortisation of rights is recorded under “Programme amortisation and other” in the statement of profit or loss at the time of the showing, using the same methods as those used for external productions. Other inventories are recorded at acquisition cost and are allocated to profit or loss by the effective or actual amortisation method over the production period. Impairment losses on programme rights The Company makes an impairment allowance to reduce the unamortised value of in-house productions and of the rights on external productions which it considers will not be shown. When these rights expire, the valuation adjustments are applied to cancel the costs. Classification of programmes In accordance with the Spanish National Chart of Accounts, programme inventories are classified as current assets on the basis of the normal operating cycle and standard practice in the industry in which the Company operates. However, programmes are amortised over several years (see Note 11).