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Financial Statements
2.3 Property, Plant and Equipment
The items included under the heading “Property, Plant & Equipment” in the accompanying balance sheet
are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers
from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of property,
plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company
and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised.
All other repairs and maintenance are charged to the income statement during the financial period in
which they are incurred.
The Company does not apply the alternative fair value measurement method permitted by IAS 16 “Property,
Plant and Equipment”.
Depreciation is calculated using the straight-line method to allocate the cost of the various categories of
property, plant and equipment to their residual values over their estimated useful lives, as follows:
Mechanical Equipment 6-15 years
Vehicles 5-9 years
Fixtures & Equipment 5-6 years
Hardware -4 years
As regards the land, buildings, installations, fencing, aircraft ground power system, runways, taxiways,
aircraft bridges and aprons are concerned, these form part of the Service Concession Arrangement and
comprise the total infrastructure that have been recognised as an intangible asset in accordance with the
requirements of IFRIC 1 “Service Concession Arrangements”.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and
are recognised within other (losses)/gains – net, in the income statement.
2.4 Intangible Assets
a) Service Concession Arrangement
The Service Concession Arrangement is the right that has been granted by the Greek State to the Company
for the purpose of the finance, construction, operation and development of the Athens International
Airport. The above right has a finite useful life of approximately 5 years which is equal to the duration of
the concession arrangement following the completion of the construction phase.
This Service Concession Arrangement has been accounted for in terms of the requirements of IFRIC 1
“Service Concession Arrangements”, which has been early adopted from 007, and more specifically the
“Intangible Asset Model” set out in the interpretation. 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.
Amortisation is calculated using the straight-line method to allocate the cost of the right over the duration
of the Service Concession Arrangement which is approximately 5 years.
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2.3 Property, Plant and Equipment
The items included under the heading “Property, Plant & Equipment” in the accompanying balance sheet
are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes
expenditure that is directly attributable to the acquisition of the items. Cost may also include transfers
from equity of any gains/losses on qualifying cash flow hedges of foreign currency purchases of property,
plant and equipment.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Company
and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised.
All other repairs and maintenance are charged to the income statement during the financial period in
which they are incurred.
The Company does not apply the alternative fair value measurement method permitted by IAS 16 “Property,
Plant and Equipment”.
Depreciation is calculated using the straight-line method to allocate the cost of the various categories of
property, plant and equipment to their residual values over their estimated useful lives, as follows:
Mechanical Equipment 6-15 years
Vehicles 5-9 years
Fixtures & Equipment 5-6 years
Hardware -4 years
As regards the land, buildings, installations, fencing, aircraft ground power system, runways, taxiways,
aircraft bridges and aprons are concerned, these form part of the Service Concession Arrangement and
comprise the total infrastructure that have been recognised as an intangible asset in accordance with the
requirements of IFRIC 1 “Service Concession Arrangements”.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and
are recognised within other (losses)/gains – net, in the income statement.
2.4 Intangible Assets
a) Service Concession Arrangement
The Service Concession Arrangement is the right that has been granted by the Greek State to the Company
for the purpose of the finance, construction, operation and development of the Athens International
Airport. The above right has a finite useful life of approximately 5 years which is equal to the duration of
the concession arrangement following the completion of the construction phase.
This Service Concession Arrangement has been accounted for in terms of the requirements of IFRIC 1
“Service Concession Arrangements”, which has been early adopted from 007, and more specifically the
“Intangible Asset Model” set out in the interpretation. 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.
Amortisation is calculated using the straight-line method to allocate the cost of the right over the duration
of the Service Concession Arrangement which is approximately 5 years.
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