inventoriable in house productions programmes produced to be re run such as series a 612383

Antena 3 de Televisión, S.A. (2010)

Notes to the consolidated financial statements for the year ended 31 December 2010 [extract]

4 Accounting policies [extract]

4.5 Inventories [extract]

Programme rights [extract]

Rights and programme inventories are valued, based on their nature, as follows:

1. Inventoriable in-house productions (programmes produced to be re-run, such as series) are measured at acquisition and/or production cost, which includes both external costs billed by third parties for programme production and for the acquisition of resources, and internal production costs, which are calculated by applying pre-established internal rates on the basis of the time during which operating resources are used in production. The costs incurred in producing the programmes are recognised, based on their nature, under the appropriate headings in the income statement and are included under “Programme Rights” in the balance sheet with a credit to “Procurements – Inventories” in the income statement.
Amortisation of these programmes is recorded under “Amortisation of Programmes and Other Rights” in the income statement, on the basis of the number of showings, in accordance with the rates shown below:

The maximum period for amortisation of series is three years, after which the unamortised amount is written off.
Given their special nature, the series which are broadcast daily are amortised in full when the first showing of each episode is broadcast.

2. Non-inventoriable in-house productions (programmes produced to be shown only once) are measured using the same methods and procedures as those used to measure inventoriable in-house productions. Programmes produced and not shown are recognised at year-end under “Programme Rights – In-House Productions and Productions in Process” in the balance sheet. The cost of these programmes is recognised as an expense under “Programme Amortisation and Other” in the income statement at the time of the first showing.