to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESFAIR VALUEThe fair value is determined by reference to a quoted price in an active market where such a market priceexists. Failing that, it is calculated using a recognised valuation technique such as the fair value of asimilar and recent transaction or the discounting of future cash flows, based on market data. However,the fair value of short-term financial assets and liabilities can be deemed to be similar to their balancesheet value due to the short maturity of these instruments.4.9. Income taxIncome tax includes current tax and deferred tax charges. Tax is recognised against profit and lossexcept where it relates to items directly recognised as other items of comprehensive income or underequity, in which case it is recognised under equity as other items of comprehensive income or underequity.Current tax is the estimated amount of income tax payable in respect of the taxable income of a period,measured using taxation rates adopted or virtually adopted at the balance sheet date, before anyadjustment of current tax payable in respect of previous periods.Deferred tax is measured and recognised according to the liability method balance sheet approach for alltemporary differences between the book value of assets and liabilities and their tax base.However, the following items do not give rise to the recognition of deferred tax:- the initial recognition of an asset or liability as part of a transaction that is not a businesscombination and that affects neither book profit nor taxable profit;- temporary differences, to the extent that they may not be reversed in the foreseeable future.Deferred tax assets are recognised to the extent that it is probable that the Group will generate sufficienttaxable profit in the future against which corresponding temporary differences may be offset. Deferred taxassets are examined at each balance sheet date and are adjusted, if necessary, in the light of estimatedfuture taxable profits.Recognised deferred tax assets reflect the best estimate of the schedule of taxable temporary differencereversal and realisation of future taxable profits in the tax jurisdictions concerned. These future taxableprofit forecasts are consistent with business and profitability assumptions used in budgets and plans andother forecast data used to value other balance sheet items.Furthermore, deferred tax is not recognised in case of a taxable temporary difference generated by theinitial recognition of goodwill.Deferred tax assets and liabilities are valued at the income tax rate expected to apply to the period inwhich the asset will be realised or the liability settled, based on tax regulations that have been adopted orvirtually adopted at the balance sheet date.In accordance with IAS 12 – Income tax, deferred tax assets and liabilities are not discounted and areoffset if a legally enforceable right to offset current tax assets and liabilities exists and if it concernsincome tax collected by the same tax authority, either from the same taxable entity or from differenttaxable entities, which intend to settle current tax assets and liabilities based on their net value or torealise the assets and pay the tax liabilities at the same time.4.10. InventoriesInventories consist of programmes, broadcasting rights and merchandise inventories.M6 GROUP - 2012 REGISTRATION DOCUMENT - 169