Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. 2017 FINANCIAL STATEMENTS 46 16.6 Deferred tax liabilities recognised Breakdown of deferred tax liabilities recognised in the year: DEFERRED TAX LIABILITIES 2015 Additions Reduction s 2016 Additions Reductions 2017 Tax effect of identification of intangible assets 18,479 - (1,714) 16,764 - (1,714) 15,050 Total 18,479 - (1,714) 16,764 - (1,714) 15,050 In accordance with income tax recognition and measurement standard number 13, the Company will recognise the deferred tax liabilities relating to goodwill provided that these do not arise on the initial recognition thereof. The deferred tax liabilities relate to the identification of the "La Sexta" trademark and the signal transmission licence. The trademark was being amortised for accounting purposes at an annual rate of 5%, with the amortisation taken in 2015 amounting to EUR 791 thousand. In 2016, the trademark began to be amortised at an annual rate of 10%, in accordance with Spanish Audit Law 22/2015, of 20 July (see Note 4.1). The amortisation is not deductible for tax purposes and, therefore, gives rise to a positive adjustment to the taxable profit (tax loss) which is recognised as a deferred tax liability. 16.7 Years open to inspection and tax audits The Company is currently being inspected by the taxation authorities for VAT, withholdings and prepayments of investment income, personal income tax withholdings and prepayments, withholdings and prepayments for property rentals and gaming tax for 2014; for income tax for 2013 and 2014; and for withholdings of non-resident taxes for 2014 to 2017, inclusive. The Company's directors consider that the tax returns for the aforementioned taxes have been filed correctly and, therefore, even in the event of discrepancies in the interpretation of current tax legislation in relation to the tax treatment afforded to certain transactions, any liabilities that may arise would not have a material effect on the accompanying financial statements. 17.- Foreign currency balances and transactions Significant balances and transactions in foreign currency, translated at the year-end exchange rate and the average exchange rates for the year, respectively (in thousands of euros): 2017 2016 Receivables 1,021 1,381 Payables 140,070 161,543 Sales 8,643 9,243 Purchases 78,666 129,260