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 26 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 Parent 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 procurements” in the consolidated statement of profit or loss at the time of broadcast of the event on which the rights were acquired. Advances on purchases of rights Payments made to external production distributors prior to the commencement of the term of the rights are recognised under “Programme rights - Advances on purchases of rights” in the consolidated balance sheet and if such payments are in foreign currency they are translated to euros at the year-end exchange rate. Write-downs The Group makes write-downs 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 amounts set aside are applied to cancel the costs. Classification of programme rights In accordance with standard industry practice, programme rights are classified as current assets, since they are consumed in the operating cycle. There are no programme assets specifically acquired to be consumed within a period of over 12 months. g) Classification of financial assets and liabilities as current or non-current In the accompanying consolidated balance sheet, financial assets and liabilities are classified on when they are expected to be realised or settled, i.e. financial assets and liabilities that are expected to be realised or settled over the course of the company's normal operating cycle or within 12 months are classified as current, and those that do not meet these requirements as non-current. Deferred tax assets and liabilities are classified as non-current regardless of when they are expected to be realised or settled.