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 22 Depreciation is calculated, using the straight-line method, on the basis of the acquisition cost of the assets less their residual value. The land on which the buildings and other structures stand is considered to have an indefinite useful life and, therefore, is not depreciated. The period property, plant and equipment depreciation charge is recognised in the consolidated statement of profit or loss using the straight-line method at rates based on the following average years of estimated useful life of the various assets: Years of useful life Buildings 33 Plant 5 to 8 Machinery and tools 6 to 10 Furniture 10 Computer hardware 3 to 7 Transport equipment and other items of property, plant and equipment 5 to 10 Property, plant and equipment held under finance leases are recognised in the corresponding asset category of the leased item and depreciated over the shorter of the expected useful life of the asset, on the same basis as owned assets, or the lease term. Impairment of other intangible assets and property, plant and equipment The Group assesses the existence of indications of potential impairment of the non- financial assets subject to amortisation and depreciation, in order to check whether carrying amount exceeds recoverable amount, understood to be the higher of fair value less costs of disposal and value in use. For property, plant and equipment and audiovisual productions, impairment is calculated item by item, on an individual basis. Where an impairment loss subsequently reverses, 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. e) Financial assets and financial liabilities Financial assets The financial assets held by the Group 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) Financial assets held for trading: assets acquired for 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.