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Financial Statements
For the Company the “intangible asset model” is applicable resulting in the recognition of an intangible asset
that is amortised to the income statement over the concession period on a straight line basis. The intangible
asset comprises the fair value of acquiring the Service Concession which principally includes costs incurred
to construct the infrastructure (net of government grants received) as well as the present value of future
obligations for grant of the rights fees payable to the Greek Government as set out in the Service Concession
Arrangement.
This interpretation has been applied retrospectively and Chapter 7 sets out the impact of applying IFRIC
1 on net equity at 1 January 006, on P&L for the year ended 1 December 006 and on closing retained
income for the year ended 1 December 006.
b) Standards, Amendments and Interpretations effective in 2007
• IFRS 7, “Financial instruments: Disclosures”, and the complementary amendment to IAS 1, “Presentation of
financial statements – Capital disclosures”, introduces new disclosures relating to financial instruments and
does not have any impact on the classification and valuation of the Company’s financial instruments.
• IFRIC 8, “Scope of IFRS ”, requires consideration of transactions involving the issuance of equity
instruments, where the identifiable consideration received is less than the fair value of the equity
instruments issued in order to establish whether or not they fall within the scope of IFRS . This standard
does not have any impact on the Company’s financial statements.
• IFRIC 10, “Interim financial reporting and impairment”, prohibits the impairment losses recognised in
an interim period on goodwill and investments in equity instruments and in financial assets carried at
cost to be reversed at a subsequent balance sheet date. This standard does not have any impact on
the Company’s financial statements.
c) Standards, Amendments and Interpretations effective in 2007 but not relevant
The following standards, amendments and interpretations to published standards are mandatory for
accounting periods beginning on or after 1 January 007 but they are not relevant to the Company’s
operations:
• IFRS 4, “Insurance contracts”;
• IFRIC 7, Applying the restatement approach under IAS 9, Financial reporting in hyperinflationary
economies’; and
• IFRIC 9, “Re-assessment of embedded derivatives”.
d) Standards, Amendments and Interpretations to existing standards that are not yet
effective and have not been early adopted by the Company
The following standards, amendments and interpretations to existing standards have been published and
are mandatory for the Company’s accounting periods beginning on or after 1 January 008 or later periods,
but the Company has not early adopted them:
• IAS (Amendment), “Borrowing costs” (effective from 1 January 009). The amendment to the standard
is still subject to endorsement by the European Union. It requires an entity to capitalise borrowing
costs directly attributable to the acquisition, construction or production of a qualifying asset (one that
takes a substantial period of time to get ready for use or sale) as part of the cost of that asset. The
option of immediately expensing those borrowing costs will be removed. The Company will apply IAS
(Amended) from 1 January 009.
• IFRS 8, “Operating segments” (effective from 1 January 009). IFRS 8 replaces IAS 14 and aligns
segment reporting with the requirements of the US standard SFAS 11, “Disclosures about segments
of an enterprise and related information”. The new standard requires a ‘management
18
For the Company the “intangible asset model” is applicable resulting in the recognition of an intangible asset
that is amortised to the income statement over the concession period on a straight line basis. The intangible
asset comprises the fair value of acquiring the Service Concession which principally includes costs incurred
to construct the infrastructure (net of government grants received) as well as the present value of future
obligations for grant of the rights fees payable to the Greek Government as set out in the Service Concession
Arrangement.
This interpretation has been applied retrospectively and Chapter 7 sets out the impact of applying IFRIC
1 on net equity at 1 January 006, on P&L for the year ended 1 December 006 and on closing retained
income for the year ended 1 December 006.
b) Standards, Amendments and Interpretations effective in 2007
• IFRS 7, “Financial instruments: Disclosures”, and the complementary amendment to IAS 1, “Presentation of
financial statements – Capital disclosures”, introduces new disclosures relating to financial instruments and
does not have any impact on the classification and valuation of the Company’s financial instruments.
• IFRIC 8, “Scope of IFRS ”, requires consideration of transactions involving the issuance of equity
instruments, where the identifiable consideration received is less than the fair value of the equity
instruments issued in order to establish whether or not they fall within the scope of IFRS . This standard
does not have any impact on the Company’s financial statements.
• IFRIC 10, “Interim financial reporting and impairment”, prohibits the impairment losses recognised in
an interim period on goodwill and investments in equity instruments and in financial assets carried at
cost to be reversed at a subsequent balance sheet date. This standard does not have any impact on
the Company’s financial statements.
c) Standards, Amendments and Interpretations effective in 2007 but not relevant
The following standards, amendments and interpretations to published standards are mandatory for
accounting periods beginning on or after 1 January 007 but they are not relevant to the Company’s
operations:
• IFRS 4, “Insurance contracts”;
• IFRIC 7, Applying the restatement approach under IAS 9, Financial reporting in hyperinflationary
economies’; and
• IFRIC 9, “Re-assessment of embedded derivatives”.
d) Standards, Amendments and Interpretations to existing standards that are not yet
effective and have not been early adopted by the Company
The following standards, amendments and interpretations to existing standards have been published and
are mandatory for the Company’s accounting periods beginning on or after 1 January 008 or later periods,
but the Company has not early adopted them:
• IAS (Amendment), “Borrowing costs” (effective from 1 January 009). The amendment to the standard
is still subject to endorsement by the European Union. It requires an entity to capitalise borrowing
costs directly attributable to the acquisition, construction or production of a qualifying asset (one that
takes a substantial period of time to get ready for use or sale) as part of the cost of that asset. The
option of immediately expensing those borrowing costs will be removed. The Company will apply IAS
(Amended) from 1 January 009.
• IFRS 8, “Operating segments” (effective from 1 January 009). IFRS 8 replaces IAS 14 and aligns
segment reporting with the requirements of the US standard SFAS 11, “Disclosures about segments
of an enterprise and related information”. The new standard requires a ‘management
18
