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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%
-
Live broadcasting rights are measured at cost. The cost of these rights is recognised as an
expense under “Programme Amortisation and Other” in the statement of profit or loss at the time
of broadcast of the event on which the rights were acquired.
Raw and other materials
Dubbings, sound tracks, titles and signature tunes of outside productions are recorded at
acquisition or production cost. The amortisation of rights is recorded under “Programme
Amortisation and Other” in the statement of profit or loss at the time of the showing, using the
same methods as those used for outside productions.
Other inventories are recorded at acquisition cost and are allocated to profit or loss by the
effective or actual amortisation method over the production period.
Provisions
The Company recognises write-downs to reduce the unamortised value of
in-house productions and of the rights on outside productions which it
considers will not be shown. When these rights expire, the valuation
adjustments are recognised in profit or loss when the cost of the rights is
derecognised.
Classification of programmes
In accordance with the Spanish National Chart of Accounts, programme inventories are classified
as current assets on the basis of the normal business cycle and standard practice in the industry in
which the Company operates. However, programmes are amortised over several years (see Note
11).
4.7 Foreign currency transactions
The Company's functional currency is the euro. Therefore, transactions in currencies other than
the euro are deemed to be “foreign currency transactions” and are recognised by applying the
exchange rates prevailing at the date of the transaction.
At the end of each reporting period, monetary assets and liabilities denominated in foreign
currencies are translated to euros at the rates then prevailing. Any resulting gains or losses are
recognised directly in the income statement in the year in which they arise.
Monetary assets and liabilities carried at fair value that are denominated in foreign currencies are
translated at the exchange rates prevailing at the date when the fair value was determined. The
resulting gains or losses are recognised in equity or in profit or loss by applying the same methods
as those used to recognise changes in fair value, as indicated in Note 4.5 on financial instruments.