to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESPROGRAMMES AND BROADCASTING ASTING RIGHTSIn compliance with IAS 2 – Inventories, programmes and broadcasting rights are recorded in inventory atthe date the rights are open.Rights which are not open and not yet billed are classified as off-balance sheet commitments.The billed portion of rights not open is recognised in advances and payments on account.Programmes and broadcasting rights are valued at their acquisition costs, reduced at each year end bythe amount consumed, as calculated according to the following models.Métropole Télévision programmes, which constitute the predominant part of the Group’s broadcastingrights inventories, are considered to be utilised when broadcast, in accordance with the following rules:- rights acquired for a single broadcast and various rights (documentaries, concerts, sportingevents, etc.): 100% expensed on first broadcast;- rights acquired for multi-broadcasts:• 1 st broadcast: 66%;• 2 nd broadcast: 34%.Different amortisation schedules may be considered in highly specific cases of rights acquired for 4 to 5broadcasts, the audience potential of which is deemed particularly high for each broadcast.On the other hand, a writedown provision is established for broadcasting rights relating to programmesthat are not likely to be broadcast or whose unit cost turns out to be higher than the revenue expected tobe generated within the broadcasting window, on the basis of a review, title by title, of the portfolio ofbroadcasting rights.OTHER INVENTORIESThese inventories comprise products and goods relating to the brand diversification activities of theGroup. These inventories are valued at the lower of their acquisition cost and their net realisable valuewhich corresponds to the estimated sales price, net of estimated costs necessary to realise their sale.A writedown provision is established whenever their net realisable value is less than their acquisition cost,measured on a case by case basis (slow rotation, inventories for reimbursement, returns, etc.).4.11. Operating receivablesIf the maturity date is less than one year and the effects of discounting are not significant, receivables aremeasured at cost (nominal amount of the receivable). Conversely, receivables are measured at amortisedcost, using the effective rate of interest, when their maturity date exceeds one year and the effects ofdiscounting are significant.A writedown provision is calculated for each receivable as soon as circumstances indicate the possibilitythat the customer may not pay the total of the receivable within the contracted terms. The amount of theprovision equates to the difference between the discounted value at the initial effective interest rate(should the case arise) of estimated future cash flows, and the book value.170 - M6 GROUP - 2012 REGISTRATION DOCUMENT