to download the 2012 registration document. - Groupe M6

2012 FINANCIAL STATEMENTS AND RELATED NOTESOnce contracts have been signed, co-productions are disclosed as off-balance sheet commitments withregard to outstanding net payments.The payments made for co-productions awaiting technical approval or whose broadcasting licence ispending are recorded as advances and payments on account upon receipt of corresponding invoices.Co-productions are recognised as intangible assets upon receipt and technical acceptance.Co-production costs are amortised on a straight-line basis over 3 years and may be written-off, based onfuture revenue forecasts.2.2. Property, facilities and equipmentProperty, facilities and equipment are recorded at their acquisition cost. This cost includes expensesdirectly attributable to the transfer of the assets to their operational location and the commissioning costsincurred to enable assets to be operated in the manner intended by Management.They are depreciated on a straight-line or reducing balance basis. The key periods of depreciation are asfollows:Mobile technical equipmentOther mobile equipmentTechnical equipmentComputer hardware - PCsOffice equipmentVideo equipmentGeneral facilitiesOffice furniture3 years4 years3 or 4 years3 or 4 years5 years6 years10 years10 years2.3. InvestmentsAssets defined as investments are:- equity securities,- deposits and guarantees,- loans granted to Group companies.Investments are recorded at their acquisition cost and written down when their value in use is lower thantheir book value.In the case that the equity of the company whose securities are being written down is negative, aprovision for writedown of the current accounts potentially owed by this subsidiary is recognised, for anamount not exceeding the negative equity. In the case that the negative equity of this subsidiary exceedsthe value of the current accounts, an additional provision for liabilities and charges is recognised.The acquisition cost of investments acquired with effect from 2007 comprises the purchase cost and theacquisition costs (transfer taxes, fees, commissions and legal costs). These acquisition costs are subjectto an accelerated amortisation over 5 years.2.4. Broadcasting rights inventoryBroadcasting rights are classified as inventory with effect from their opening, which is when the channel iscontractually authorised to broadcast the corresponding programmes.Broadcasting rights not open are disclosed in off-balance sheet commitments at their contract butuninvoiced value. Rights invoiced but not open are recorded as payments on account to suppliers.Purchases are recorded at their purchase cost, net of any discounts and rebates earned but excludingthe effect of any possible settlement discounts.Broadcasting rights are charged to cost of sales according to the number of broadcasts, in the followingmanner:Rights acquired for a single broadcast: 100% of the contract value.M6 GROUP - 2012 REGISTRATION DOCUMENT - 217