apportionment
of
this
income
in
the
given
period.
For
more
information
about
the
amortization
method
and
amortization
charge for the period by programming assets’ category see notes 6l and 22.
•
Indefinite useful life of Polsat, TV4, TV6, IPLA and Polo TV (Lemon Records) brands
As
at
the
reporting
date,
the
Group
has
reviewed
whether
relevant
factors
continue
to
indicate
indefinite
useful
life
of
Polsat,
TV4,
TV6,
IPLA
and
Polo
TV
(Lemon
Records)
brands
recognised
in
2011-2017
on
the
acquisition
of
Telewizja
Polsat
S.A.,
Polskie Media S.A., entities comprising IPLA network and Lemon Records Sp. z o.o.
The
Group
has
reviewed
the
following
factors
which
are
essential
for
estimating
the
economic
useful
life
of
the
Polsat,
TV4,
TV6, IPLA and Polo TV (Lemon Records) brands:
- The expected usage of the asset by the entity and whether the asset could be managed more efficiently
- Technical, technological, commercial or other types of obsolescence
- The stability of the industry in which the asset operates and changes in the market demand for media services
- Expected actions by competitors or potential competitors
- The level of maintenance expenditure required to obtain the expected future economic benefits from the asset
- Whether the useful life of the asset is dependent on the useful life of other asset of the entity.
Having
analyzed
the
above
factors,
the
Group
has
concluded
that
there
is
no
foreseeable
limit
to
the
period
over
which
the
Polsat,
TV4,
TV6,
IPLA
and
Polo
TV
(Lemon
Records)
brands
are
expected
to
generate
net
cash
inflows
for
the
Group
and
thus
the
indefinite
useful
life
was
assumed.
This
means
that
the
above
brands
are
not
subject
to
amortization
but
rather
are
tested
for
impairment
on
annual
basis.
The
Management
believes
that
Polsat,
TV4,
TV6
and
Polo
TV
(Lemon
Records)
brands
have
a
positive
impact
on
the
revenues
from
advertising
and
sponsorship
and
IPLA
brand
has
a
positive
impact
on
acquisition
of
new
customers
as
well
as
increase
of
ARPU
among
current
customers
of
Cyfrowy
Polsat.
Furthermore,
the
Polsat
brand
is
widely
recognized
by
media
and
is
highly
appreciated
in
numerous
rankings.
Numerous
awards
for
employees,
individuals
associated
with
the
brand
as
well
as
high
Power
Ratio
index
also
indicate
a
strong
position
of
the
brand.
As
at
the
balance
sheet
date
the
Management
states
there
are
no
plans
to
cease
using
or
significantly
modify
Polsat,
TV4,
TV6,
IPLA
or
Polo
TV
(Lemon
Records)
brands.
The
value
assigned
to
the
brands
relate
to
the
name
“Polsat”,
"TV4",
“TV6”,
“ipla”
and
“Polo
TV”
respectively
and
the
related
logotypes
both
of
which
are
reserved
trademarks.
In
case
the
Group
decides
about
discontinuance
of
use
or
significant
modification
of
the
name
or
logotype
the
Management
would
review
whether
events
and
circumstances
continue
to
support
an
indefinite
useful
life
assessment
of
the
Polsat,
TV4,
TV6,
IPLA
and
Polo TV (Lemon Records) brands and assess whether there are indicators of possible impairment.
•
Fair
value
of
assets
and
liabilities
of
TVO
Sp.
z
o.o.,
ISTS
Sp.
z
o.o.,
Esoleo
Sp.
z
o.o.,
IST
Sp.
z
o.o.,
data
center
in
the
form of an organised part of the enterprise.
The
Group
identified
assets
and
liabilities
and
estimated
their
fair
value
under
the
purchase
price
allocation
process
relating
to
the
acquisition
of
TVO
Sp.
z
o.o.,
ISTS
Sp.
z
o.o.,
Esoleo
Sp.
z
o.o.,
IST
Sp.
z
o.o.,
data
center
in
the
form
of
an
organised
part of the enterprise. For more information see note 38.
•
Preliminary
fair
value
of
assets
and
liabilities
of
Interia
Group,
TV
Spektrum
Sp.
z
o.o.,
Polot
Media
Sp.
z
o.o.
(formerly
Tako
Media
Sp.
z
o.o.)
and
Polot
Media
Sp.
z
o.o.
Sp.k.
(formerly
Tako
Media
Sp.
z
o.o.
S.k.)
and
BCAST Sp. z o.o.
The
Group
identified
assets
and
liabilities
and
estimated
their
preliminary
fair
value
under
the
purchase
price
allocation
process
relating
to
the
acquisition
of
Interia
Group,
TV
Spektrum
Sp.
z
o.o.,
Polot
Media
Sp.
z
o.o.
and
Polot
Media
Sp.
z
o.o. Sp.k. and BCAST Sp. z o.o. For more information see note 38.