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Financial Statements
4. Notes to the financial statements
4.1 Operating revenues
Operating revenues were measured at the fair value of the consideration received or receivable, taking
into account the amount of any trade discounts or tax-volume rebates.
The fair value of the consideration received or receivable is equal to the invoiced amount, since the Company
doesn’t provide any deferred credit terms to its customers, in the form of interest-free instalments or at
below market interest rates.
The Company, in cases where it is likely, based on estimations, that the economic benefits related to
a transaction are not expected to flow to the entity, does not recognise the revenue of the specific
transaction.
a) Airport charges
Revenues related to airport charges are recognised in the Income Statement when the services are rendered.
The criteria for the recognition of income related to airport charges is the aircraft’s take off. Every arrival
of an aircraft and its subsequent departure is considered as a cycle of movement/flight where all necessary
services have been rendered.
Article 14 of law 8/1995, the “Airport Development Agreement”, sets the rules for defining the charges
levied to the users of the airport with respect of the facilities and services provided at the airport.
According to the aforementioned article, the Company shall be free and at its discretion determine the
level of airport charges in order to cover:
• all operating costs and expenses allocated to air activities for each period;
• the proportion of all overheads allocated to air activities for each period;
• depreciation of all assets allocated to air activities by applying the straight line depreciation method
over the projected life of these assets;
• interest paid during the period on the proportion of the debt allocated to air activities;
• income tax paid during the period allocated to air activities; and,
• a compounded cumulative return on the air activities capital at the maximum level of 15% per
annum.
“Air Activities” means the provision of facilities, services and equipment for the purpose of:
• Landing, parking of aircrafts;
• The servicing of aircrafts;
• The handling of passengers, baggage, cargo or mail on airport premises; and,
• The transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
Since the airport’s opening the Company has never exceeded the cumulative equity return of 15% on the air
activities capital, setting the airport charges at a level reasonably acceptable by the users of the airport.
4
4. Notes to the financial statements
4.1 Operating revenues
Operating revenues were measured at the fair value of the consideration received or receivable, taking
into account the amount of any trade discounts or tax-volume rebates.
The fair value of the consideration received or receivable is equal to the invoiced amount, since the Company
doesn’t provide any deferred credit terms to its customers, in the form of interest-free instalments or at
below market interest rates.
The Company, in cases where it is likely, based on estimations, that the economic benefits related to
a transaction are not expected to flow to the entity, does not recognise the revenue of the specific
transaction.
a) Airport charges
Revenues related to airport charges are recognised in the Income Statement when the services are rendered.
The criteria for the recognition of income related to airport charges is the aircraft’s take off. Every arrival
of an aircraft and its subsequent departure is considered as a cycle of movement/flight where all necessary
services have been rendered.
Article 14 of law 8/1995, the “Airport Development Agreement”, sets the rules for defining the charges
levied to the users of the airport with respect of the facilities and services provided at the airport.
According to the aforementioned article, the Company shall be free and at its discretion determine the
level of airport charges in order to cover:
• all operating costs and expenses allocated to air activities for each period;
• the proportion of all overheads allocated to air activities for each period;
• depreciation of all assets allocated to air activities by applying the straight line depreciation method
over the projected life of these assets;
• interest paid during the period on the proportion of the debt allocated to air activities;
• income tax paid during the period allocated to air activities; and,
• a compounded cumulative return on the air activities capital at the maximum level of 15% per
annum.
“Air Activities” means the provision of facilities, services and equipment for the purpose of:
• Landing, parking of aircrafts;
• The servicing of aircrafts;
• The handling of passengers, baggage, cargo or mail on airport premises; and,
• The transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
Since the airport’s opening the Company has never exceeded the cumulative equity return of 15% on the air
activities capital, setting the airport charges at a level reasonably acceptable by the users of the airport.
4
