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CHAPTER 7
EXPLANATION OF THE IMPACT ATTRIBUTED TO IFRIC 12 ADOPTION
Prior period comparative figures have been restated as a result of the adoption of IFRIC 1 “Service Concession
Arrangements” and the effects of the change in accounting for the grant of rights fees, as more fully
explained below.
With effect from 1 January 007 the Company early adopted the provisions of IFRIC 1 “Service Concession
Arrangements” which requires that the exchange of airport infrastructure assets, developed by the Company
under the Airport Development Agreement, for the right to use such assets be accounted for as an intangible
asset which is amortized on a straight-line basis over the concession period. Prior to 1 January 007, the
Company accounted for such airport infrastructure assets as property, plant and equipment which were
depreciated on the straight line basis over the shorter of their useful life or concession period.
The cost of the above intangible also includes grant of rights fees payable to the Greek State as grantor under
the Airport Development Agreement over the concession period with any outstanding future obligations
presented within non-current liabilities. Prior to 1 January 007, grant of rights fees where recognized and
expensed on a cash payments basis.
The effect of the above resulted in a net after tax increase in opening retained income as of 1 January
006 and a net after tax decrease in net income for the year ended 1 December 006 by € .06.59 and
€1.5.45 respectively as presented below:
Opening retained income as of 1 January 2006 Amounts in €
Amortization adjustments for the intangible asset 5.10.6
Recognition and amortization of the grant of rights fee (8.09.019)
Provision for major restoration expenses (.94.88)
Tax effects (1.01.10)
Total 3.063.359
Net income for the year ended 31 December 2006 Amounts in €
Amortization adjustments for the intangible asset 5.19.466
Recognition and amortization of the grant of rights fee
Provision for major restoration expenses (5.877.91)
Tax effects (1.01.680)
Total 417.78
(1.253.345)
Closing retained income as of 31 December 2006 Amounts in €
Amortization adjustments for the intangible asset 40.9.80
Recognition and amortization of the grant of rights fee
Provision for major restoration expenses (.969.9)
Tax effects (.956.518)
(60.8)
Total 1.810.014
65
EXPLANATION OF THE IMPACT ATTRIBUTED TO IFRIC 12 ADOPTION
Prior period comparative figures have been restated as a result of the adoption of IFRIC 1 “Service Concession
Arrangements” and the effects of the change in accounting for the grant of rights fees, as more fully
explained below.
With effect from 1 January 007 the Company early adopted the provisions of IFRIC 1 “Service Concession
Arrangements” which requires that the exchange of airport infrastructure assets, developed by the Company
under the Airport Development Agreement, for the right to use such assets be accounted for as an intangible
asset which is amortized on a straight-line basis over the concession period. Prior to 1 January 007, the
Company accounted for such airport infrastructure assets as property, plant and equipment which were
depreciated on the straight line basis over the shorter of their useful life or concession period.
The cost of the above intangible also includes grant of rights fees payable to the Greek State as grantor under
the Airport Development Agreement over the concession period with any outstanding future obligations
presented within non-current liabilities. Prior to 1 January 007, grant of rights fees where recognized and
expensed on a cash payments basis.
The effect of the above resulted in a net after tax increase in opening retained income as of 1 January
006 and a net after tax decrease in net income for the year ended 1 December 006 by € .06.59 and
€1.5.45 respectively as presented below:
Opening retained income as of 1 January 2006 Amounts in €
Amortization adjustments for the intangible asset 5.10.6
Recognition and amortization of the grant of rights fee (8.09.019)
Provision for major restoration expenses (.94.88)
Tax effects (1.01.10)
Total 3.063.359
Net income for the year ended 31 December 2006 Amounts in €
Amortization adjustments for the intangible asset 5.19.466
Recognition and amortization of the grant of rights fee
Provision for major restoration expenses (5.877.91)
Tax effects (1.01.680)
Total 417.78
(1.253.345)
Closing retained income as of 31 December 2006 Amounts in €
Amortization adjustments for the intangible asset 40.9.80
Recognition and amortization of the grant of rights fee
Provision for major restoration expenses (.969.9)
Tax effects (.956.518)
(60.8)
Total 1.810.014
65
