Consolidated Annual Accounts 2017

Atresmedia Corporación de Medios de Comunicación, S.A. and Subsidiaries Translation of consolidated financial statements originally issued in Spanish and prepared in accordance with the regulatory financial reporting framework applicable to the Group in Spain (see Notes 2 and 29). In the event of discrepancy, the Spanish-language version prevails. 2017 CONSOLIDATED FINANCIAL STATEMENTS 9 The 2016 consolidated financial statements, which were approved by the shareholders at the General Meeting held on 19 April 2017 and are included for comparison purposes, were also prepared in accordance with EU-IFRSs applied on a uniform basis with those of 2017. Standards and interpretations effective in the current year: Standards, amendments and interpretations that became effective in 2017 and were taken into account in preparing the accompanying consolidated financial statements: New standards, amendments and interpretations: Mandatory application for annual periods beginning on or after: Approved for use in the European Union Amendments to IAS 7 The amendments require additional disclosures on financing activities 1 January 2017 Amendments to IAS 12 Recognition of deferred tax assets for unrealised losses Amendments to IAS 7 Statement of Cash Flows: Disclosure Initiative The amendments require entities to provide disclosures that enable users of consolidated financial statements to evaluate changes in liabilities arising from financial activities. The Group has considered these amendments in the preparation of the information included in the consolidated financial statements (see Note 14). Amendments to IAS 12 Income Taxes: Recognition of Deferred Tax Assets for Unrealised Losses The amendments clarify when a deferred tax asset should be recognised for unrealised losses, mainly regarding the following three aspects: - Unrealised losses on a debt instrument measured at fair value for which the tax base remains at cost can give rise to a deductible temporary differences, irrespective of whether the debt instrument’s holder expects to recover the carrying amount of the debt instrument by holding it to maturity or by selling it. - When estimating taxable profit of future periods, an entity can assume that an asset will be recovered for more than its carrying amount if that recovery is probable and the asset is not impaired. - When evaluating the recoverability of these deductible temporary differences and comparing them with future taxable profits, the future taxable profits do not need to include tax deductions resulting from the reversal of those deductible temporary differences. The entry into force of these amendments did not have any impact on the consolidated financial statements.