Download Complete PDF - Informe Anual 2012
Download Complete PDF - Informe Anual 2012 Download Complete PDF - Informe Anual 2012
The Group depreciates its intangible fixed assets following the straight line method, distributing the cost of the assets over their estimated useful lives, in accordance with the following table: Estimated years of useful life Buildings 33-50 Plant and machinery 10-30 Other fixtures, tools and furniture 5-10 Other fixed assets 4-5 4.2 Real-estate investments These reflect the value of land, buildings and structures held either for rental or to obtain a capital gain on their sale. Real estate investments are valued at their original cost. Buildings are valued according to the cost of the corresponding certifications of the works executed plus any expenses associated with the project (works management, fees, architect’s fees, etc.) and depreciated on a straight-line basis depending on their useful life, which is the same as that used in tangible fixed assets for similar elements. Interest costs attributable to these investments are activated during the construction period up to the moment they are ready for sale and are considered as an increased investment cost. Should financial income be obtained from temporary investment of surpluses, said income reduces the cost of the investment. Revenue and profits or losses arising from the sale of the assets to buyers and the execution of deeds of sale, being the time when the inherent rights and obligations are transferred, are recognised. Rental income is attributed to the results on an accrual basis. An accrual basis is used to recognise rental costs, charging all maintenance, management and depreciation costs of the rented assets to profit and loss. The Group periodically determines the fair value of real estate investment elements, using appraisals performed by independent experts as a reference. 4.3 Consolidation goodwill Consolidation goodwill reflects excess acquisition cost when compared to the Group’s interest in the market value of the identifiable assets and liabilities of a subsidiary or jointly controlled entity on the date of acquisition. Any positive difference between the cost of interests in the capital of consolidated and associated entities and the corresponding theoretical book values acquired, adjusted on the date of the first consolidation, are recognised as follows: 1. If they are assignable to specific equity elements of the companies acquired, by increasing the value of any assets whose market value is above their net book value appearing in the balance statements. 2. If they are assignable to specific intangible assets, by explicitly recognising them in the consolidated balance sheet, provided their market value on the date of acquisition can be reliably determined. 3. Any remaining differences are entered into the books as goodwill, which is assigned to one or more specific cash-generating units (in general hotels) which are expected to make a profit. Goodwill will only be booked when it has been acquired for valuable consideration. Any goodwill generated through the acquisition of associated companies is booked as an increased value of the interest. Any goodwill generated through acquisitions prior to the IFRS transitional date, 1 January 2004, is kept at its net value booked at 31 December 2003 in accordance with Spanish accounting standards. Goodwill is not depreciated. In this regard, the Group estimates, using the so-called “Impairment Test”, the possible existence of permanent losses of value that would reduce the recoverable value of goodwill to an amount less that the net cost booked at the end of each year and provided evidence of a loss of value exists. Should this be the case, they are written down in the consolidated comprehensive profit and loss statement. Any write-downs entered into the books cannot be subject to subsequent review. All goodwill is assigned to one or more cash-generating units in order to conduct the impairment test. The recoverable value of each cashgenerating unit is determined either as the value in use or the net sale price that would be obtained for the assets assigned to the cash-generating unit, whichever is higher. The value in use is calculated on the basis of estimated future cash flows discounted at an after tax rate that reflects the current market valuation with respect to the cost of money and the specific risks associated with the asset. The discount rates used by the Group for these purposes range from 7.42% to 12%, depending on the different risks associated with each specific asset. 4.4 Intangible assets Intangible assets are considered to be any specifically identifiable non-monetary assets which have been acquired from third parties or developed by the Group. Only those whose cost can be estimated in an objective way and from which future economic profits are expected are recognised. Any assets deemed to contribute indefinitely to the generation of profits are considered to have an indefinite useful life. The remaining intangible assets are considered have a “specific useful life”. 72 REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
Intangible assets with an indefinite useful life are not depreciated and are hence subjected to the “impairment test” at least once a year (see Note 4.3). Intangible assets with a definite useful life are depreciated according to the straight-line method on the basis of the estimated years of useful life of the asset in question. The following are the main items recorded under the “Intangible assets” heading: i) Rights of use: This item reflects the right to operate Hotel NH Plaza de Armas in Seville, acquired in 1994, whose depreciation is attributed to the consolidated comprehensive profit/loss over the 30-year term of the agreement at a growing rate of 4% per year. ii) “Rental agreement premiums” reflect the amounts paid as a condition to obtain certain hotel lease agreements. They are depreciated on a straight-line basis depending on the term of the lease. iii) “Concessions, patents and trademarks” basically reflect the disbursements made by Gran Círculo de Madrid, S.A. for the refurbishment and remodelling works of the building where the Casino de Madrid is located. The depreciation of such works is calculated on a straight-line basis by taking into account the term of the concession for operating and managing the services provided in the building where the Casino de Madrid is located, which finalises on 1 January 2037. iv) “Software applications” include various computer programs acquired by different consolidated companies. These programs are valued at their original cost price and depreciated at 25% per year on a straight-line basis. 4.5 Impairment in the value of tangible and intangible assets excluding goodwill The Group evaluates the possible existence of a loss of value each year that would oblige it to reduce the book values of its tangible and intangible assets. A loss is deemed to exist when the recoverable value is less than the book value. The recoverable amount is either the net sale value or the value in use, whichever is higher. The value in use is calculated on the basis of estimated future cash flows discounted at an after tax discount rate that reflects the current market valuation with respect to the cost of money and the specific risks associated with the asset. Future estimates have been drawn up over a period of five financial years, except in cases in which the remaining term of a lease agreement is less, plus a residual value. The discount rates used by the Group for these purposes range from 7.42% to 12%, depending on the different risks associated with each specific asset. If the recoverable amount of an asset is estimated to be lower than its book value, the latter is reduced to the recoverable amount by recognising the corresponding reduction using the consolidated comprehensive profit and loss statement. If an impairment loss is subsequently reversed, the book value of the asset is increased to the limit of the original value at which such asset was booked before the loss of value was recognised. Information on impairment losses detected in the financial year appears in Notes 7 and 8 of this Consolidated Annual Report. 4.6 Leases The Group generally classifies all leases as operating leases. Only those leases which substantially transfer to the lessee the liabilities and advantages arising from the property and under the terms of which the lessee holds an acquisition option on the asset at the end of the agreement under conditions that could be clearly deemed as more advantageous than market conditions are classified as financial leases. 4.6.1 Operating leases In operating lease transactions, ownership of the leased asset and substantially all the risks and advantages arising from the ownership of the asset remain with the lessor. When the Group acts as the lessor, it recognises the income from operating leases using the straight-line method according to the terms of the agreements signed. These assets are depreciated in accordance with the policies adopted for similar own use tangible assets. When the Group acts as the lessee, lease expenses are charged to the consolidated comprehensive profit and loss statement on a straight-line basis. 4.6.2 Financial leases The Group recognises financial leases as assets and liabilities in the consolidated balance sheet at the start of lease term at the market value of the leased asset or at the present value of the minimum lease instalments, should the latter be lower. The interest rate established in the agreement is used to calculate the present value of the lease instalments. The cost of assets acquired through financial leasing agreements is booked in the consolidated balance sheet according to the nature of the asset described in the agreement. The financial expenses are distributed over the period of the lease in accordance with a financial criterion. 4.7 Financial instruments 4.7.1 Financial assets Financial assets are recognised in the consolidated balance sheet when they are acquired and initially booked at their fair value. The financial assets held by Group companies are classified as follows: - Negotiable financial assets: these include any assets acquired by the companies with the aim of taking short-term advantage of any changes their prices may undergo or any existing differences between their purchase and sale price. This item also includes any financial derivatives that are not considered accounting hedges. REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS 73
- Page 21 and 22: Total number of executive directors
- Page 23 and 24: Name or trade name of director Trad
- Page 25 and 26: B.1.13 Indicate, on an aggregate ba
- Page 27 and 28: The proposals to appoint directors
- Page 29 and 30: ) When they are removed from the ex
- Page 31 and 32: B.1.30 State the number of meetings
- Page 33 and 34: MR JOSÉ ANTONIO CASTRO SOUSA HOTEL
- Page 35 and 36: EXECUTIVE OR DELEGATE COMMITTEE Nam
- Page 37 and 38: ) Competencies The primary function
- Page 39 and 40: C - RELATED-PARTY TRANSACTIONS C.1
- Page 41 and 42: Mechanisms for resolving possible c
- Page 43 and 44: Description of functions The Audit
- Page 45 and 46: The documents in which such delegat
- Page 47 and 48: II.4. Ratification and renewal of t
- Page 49 and 50: a) The transformation of listed com
- Page 51 and 52: See sections: B.1.2, B.1.27 and B.2
- Page 53 and 54: When the Board adopts significant o
- Page 55 and 56: 45. Supervision of compliance with
- Page 57 and 58: G - OTHER USEFUL INFORMATION If you
- Page 59 and 60: 1.2 Existence of the following elem
- Page 61 and 62: In order to ensure the reliability
- Page 63 and 64: CONSOLIDATED BALANCE SHEETS AT 31 D
- Page 65 and 66: CONSOLIDATED STATEMENTS OF CHANGES
- Page 67 and 68: REPORT ON THE CONSOLIDATED FINANCIA
- Page 69 and 70: The Directors have assessed the pot
- Page 71: The fair value of Resco Sotogrande,
- Page 75 and 76: 4.7.4 Equity instruments An equity
- Page 77 and 78: year-end are likewise charged to th
- Page 79 and 80: The basic hypotheses used to estima
- Page 81 and 82: In Italy, the most significant addi
- Page 83 and 84: 11. NON-CURRENT FINANCIAL INVESTMEN
- Page 85 and 86: As a general rule, these receivable
- Page 87 and 88: iii) Other non-available reserves
- Page 89 and 90: Mortgage guarantee loans, whether s
- Page 91 and 92: On 26 October 2012, the Court of Ar
- Page 93 and 94: 20. SHARE-BASED REMUNERATION SCHEME
- Page 95 and 96: Provisions for pensions and similar
- Page 97 and 98: Total Corporate Tax Income or Expen
- Page 99 and 100: Year of origin Amount Offsetting De
- Page 101 and 102: Contingent assets and liabilities T
- Page 103 and 104: 27.3 Personnel expenses This item i
- Page 105 and 106: 27.6 Financial expenses and changes
- Page 107 and 108: FUNDING AGREEMENTS € Thousand 201
- Page 109 and 110: 29.1 Information on main segments
- Page 111 and 112: Holder Investee company Activity Nu
- Page 113 and 114: After the capital increase, the sha
- Page 115 and 116: Similarly, the owners’ associatio
- Page 117 and 118: ANNEX I: SUBSIDIARIES Data on the C
- Page 119 and 120: Investee company Registered address
- Page 121 and 122: ANNUAL REPORT OF THE AUDIT COMMITTE
The Group depreciates its intangible fixed assets following the straight line method, distributing the cost of the assets over their estimated useful<br />
lives, in accordance with the following table:<br />
Estimated years of useful life<br />
Buildings 33-50<br />
Plant and machinery 10-30<br />
Other fixtures, tools and furniture 5-10<br />
Other fixed assets 4-5<br />
4.2 Real-estate investments<br />
These reflect the value of land, buildings and structures held either for rental or to obtain a capital gain on their sale.<br />
Real estate investments are valued at their original cost. Buildings are valued according to the cost of the corresponding certifications of the works<br />
executed plus any expenses associated with the project (works management, fees, architect’s fees, etc.) and depreciated on a straight-line basis<br />
depending on their useful life, which is the same as that used in tangible fixed assets for similar elements.<br />
Interest costs attributable to these investments are activated during the construction period up to the moment they are ready for sale and are<br />
considered as an increased investment cost. Should financial income be obtained from temporary investment of surpluses, said income reduces<br />
the cost of the investment.<br />
Revenue and profits or losses arising from the sale of the assets to buyers and the execution of deeds of sale, being the time when the inherent<br />
rights and obligations are transferred, are recognised. Rental income is attributed to the results on an accrual basis.<br />
An accrual basis is used to recognise rental costs, charging all maintenance, management and depreciation costs of the rented assets to profit<br />
and loss.<br />
The Group periodically determines the fair value of real estate investment elements, using appraisals performed by independent experts as a<br />
reference.<br />
4.3 Consolidation goodwill<br />
Consolidation goodwill reflects excess acquisition cost when compared to the Group’s interest in the market value of the identifiable assets and<br />
liabilities of a subsidiary or jointly controlled entity on the date of acquisition.<br />
Any positive difference between the cost of interests in the capital of consolidated and associated entities and the corresponding theoretical book<br />
values acquired, adjusted on the date of the first consolidation, are recognised as follows:<br />
1. If they are assignable to specific equity elements of the companies acquired, by increasing the value of any assets whose market value is<br />
above their net book value appearing in the balance statements.<br />
2. If they are assignable to specific intangible assets, by explicitly recognising them in the consolidated balance sheet, provided their market<br />
value on the date of acquisition can be reliably determined.<br />
3. Any remaining differences are entered into the books as goodwill, which is assigned to one or more specific cash-generating units (in general<br />
hotels) which are expected to make a profit.<br />
Goodwill will only be booked when it has been acquired for valuable consideration.<br />
Any goodwill generated through the acquisition of associated companies is booked as an increased value of the interest.<br />
Any goodwill generated through acquisitions prior to the IFRS transitional date, 1 January 2004, is kept at its net value booked at 31 December<br />
2003 in accordance with Spanish accounting standards.<br />
Goodwill is not depreciated. In this regard, the Group estimates, using the so-called “Impairment Test”, the possible existence of permanent<br />
losses of value that would reduce the recoverable value of goodwill to an amount less that the net cost booked at the end of each year and<br />
provided evidence of a loss of value exists. Should this be the case, they are written down in the consolidated comprehensive profit and loss<br />
statement. Any write-downs entered into the books cannot be subject to subsequent review.<br />
All goodwill is assigned to one or more cash-generating units in order to conduct the impairment test. The recoverable value of each cashgenerating<br />
unit is determined either as the value in use or the net sale price that would be obtained for the assets assigned to the cash-generating<br />
unit, whichever is higher. The value in use is calculated on the basis of estimated future cash flows discounted at an after tax rate that reflects the<br />
current market valuation with respect to the cost of money and the specific risks associated with the asset.<br />
The discount rates used by the Group for these purposes range from 7.42% to 12%, depending on the different risks associated with each specific<br />
asset.<br />
4.4 Intangible assets<br />
Intangible assets are considered to be any specifically identifiable non-monetary assets which have been acquired from third parties or developed<br />
by the Group. Only those whose cost can be estimated in an objective way and from which future economic profits are expected are recognised.<br />
Any assets deemed to contribute indefinitely to the generation of profits are considered to have an indefinite useful life. The remaining intangible<br />
assets are considered have a “specific useful life”.<br />
72 REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS