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Financial Statements
c) Share-based Compensation
The Company does not provide any share-based compensation to employees. In the event that the
Company decides to provide such benefits at some future date, these will be accounted for in terms of the
pronouncements of IFRS “Share-based Payment”.
d) Termination Benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits.
The Company recognises termination benefits when it is demonstrably committed to either: terminating the
employment of current employees according to a detailed formal plan without possibility of withdrawal;
or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits
falling due more than 1 months after the balance sheet date are discounted to present value.
e) Profit-sharing and Bonus Plan
The Company does not have any profit-sharing plans in place for employees. In respect of bonus plans
that exist, the Company recognises a liability and an expense for bonuses when it is contractually obliged
to pay bonuses or where there is a past practice that has created a constructive obligation.
2.17 Provisions
Provisions are recognised when: the Company has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated. Provisions include the obligations under the Service Concession
Arrangement to maintain the serviceability of major infrastructure components, such as runways, taxiways,
aprons, etc. which require major overhauls at regular intervals during the concession period. Provisions are
not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to passage of time is recognised as
interest expense.
2.18 Revenue Recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax,
returns, rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of the
Company’s activities as described below. The amount of revenue is not considered to be reliably measurable
until all contingencies relating to the sale have been resolved. The Company bases its estimates on historical
results, taking into consideration the type of customer, the type of transaction and the specifics of each
arrangement.
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c) Share-based Compensation
The Company does not provide any share-based compensation to employees. In the event that the
Company decides to provide such benefits at some future date, these will be accounted for in terms of the
pronouncements of IFRS “Share-based Payment”.
d) Termination Benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits.
The Company recognises termination benefits when it is demonstrably committed to either: terminating the
employment of current employees according to a detailed formal plan without possibility of withdrawal;
or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits
falling due more than 1 months after the balance sheet date are discounted to present value.
e) Profit-sharing and Bonus Plan
The Company does not have any profit-sharing plans in place for employees. In respect of bonus plans
that exist, the Company recognises a liability and an expense for bonuses when it is contractually obliged
to pay bonuses or where there is a past practice that has created a constructive obligation.
2.17 Provisions
Provisions are recognised when: the Company has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated. Provisions include the obligations under the Service Concession
Arrangement to maintain the serviceability of major infrastructure components, such as runways, taxiways,
aprons, etc. which require major overhauls at regular intervals during the concession period. Provisions are
not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood
of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to passage of time is recognised as
interest expense.
2.18 Revenue Recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax,
returns, rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of the
Company’s activities as described below. The amount of revenue is not considered to be reliably measurable
until all contingencies relating to the sale have been resolved. The Company bases its estimates on historical
results, taking into consideration the type of customer, the type of transaction and the specifics of each
arrangement.
6
