Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. 2017 FINANCIAL STATEMENTS 31 (see Note 8.1) and EUR 3,918 thousand related to loans granted to Hola TV América, S.L., as well as the reversal of a loss allowance for non-current loans of EUR 1,024 thousand. Impairment losses amounting to EUR 2,377 thousand were recognised on investments in group companies and associates. Meanwhile, impairment losses on investments in group companies and associates amounting to EUR 2,009 thousand were reversed, of which EUR 1,709 thousand related to the reversal of a portion of the impairment recognised on Atresmedia Cine S.L. Unipersonal, and EUR 2,164 thousand to the reversal of impairments on current investments. 9.- Information on the nature and extent of risks arising from financial instruments The Company’s and the Group's risk management and control system is reviewed and updated regularly in response to how the Group's businesses perform and evolve, to risks that actually materialise, to changes in the law, and to how the organisation itself changes and evolves. This risk management and control system helps the management team to make the right decisions and address risk effectively. We identify and implement any controls and action plans necessary targeting known risks; this enhances our ability to create value and minimises any impact of losses that actually materialise. Risk analysis and control touches on all the Group's businesses and activities, and involves all our organisational units. This means that risk management and control is a corporate system in which the entire organisation is on alert. The system is headed and overseen by the Board, yet some of its functions are delegated to the Audit and Control Committee. Risk management also brings into play the coordinating role of the Compliance Committee, and input from the Legal Affairs, in risk management and compliance control, Finance, related to financial risks and the controls comprising the system for internal control over financial reporting (ICFR), and, lastly, Internal Audit and Process Control, the coordination and oversight of the overall operation of the risk management system. The Company and the Group have the necessary tools and organisation to ensure the effectiveness of the control procedures approved. The Company centralises financial risk management in the Finance Department, which has the necessary mechanisms in place to control exposure to fluctuations in interest and exchange rates, as well as to credit and liquidity risk. The main financial risks to which the Company is exposed are outlined below: a) Credit risk: The Company generally places cash and cash equivalents with financial institutions with high credit ratings. The advertising contracting terms require bank guarantees prior to the launch of advertising campaigns. There is also no significant concentration of credit risk to third parties and no significant incidents arose in the year. The percentage of past-due receivables at 31 December 2017 was 1.58% (2016: 1.77%). In any case, the Company estimates allowances for doubtful receivables based on the age of the debt. Allowances for doubtful receivables at 31 December 2017 stood at EUR 4,665 thousand (2016: EUR 4,896 thousand) (see Note 18.4). b) Liquidity risk: The Company's liquidity policy is to arrange credit facilities and short-term investments for sufficient amounts to cover funding requirements based on the outlook for the business. All are at floating rates.