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FINANCIAL STATEMENTS
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 25 years which is equal to the duration of the concession arrangement following
the completion of the construction phase.
The Service Concession Arrangement has been accounted for as an intangible asset which 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 25 years.
Any subsequent costs incurred in maintaining the serviceability of the infrastructure is expensed as incurred unless such
cost relate to major upgrades which increase the income generating ability of the infrastructure. These costs are capitalised
as part of the Service Concession intangible asset and are amortised on a straight-line basis over the remaining period
of the Concession Arrangement.
b) Trademarks and Licences
Acquired trademarks and licences are shown at historical cost. Trademarks and licences have a finite useful life and are
carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the
cost of trademarks and licences over their estimated useful lives.
c) Computer Software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are amortised over their estimated useful lives (3 to 4 years).
Costs associated with developing or maintaining computer software programmes are recognised as an expense as
incurred. Costs that are directly associated with the development of identifiable and unique software products controlled
by the Company, and that will probably generate economic benefits exceeding costs beyond one year, are recognised
as intangible assets. Costs include the employee costs incurred as a result of developing software and an appropriate
portion of relevant overheads.
Computer software development costs that recognised as assets are amortised over their estimated useful lives (3 to 4 years).
2.5 Impairment of non-Financial Assets
Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually
for impairment. Assets, such as the Service Concession intangible asset, that are subject to amortisation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-
generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal
of the impairment at each reporting date.
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 26 OF 69
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 25 years which is equal to the duration of the concession arrangement following
the completion of the construction phase.
The Service Concession Arrangement has been accounted for as an intangible asset which 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 25 years.
Any subsequent costs incurred in maintaining the serviceability of the infrastructure is expensed as incurred unless such
cost relate to major upgrades which increase the income generating ability of the infrastructure. These costs are capitalised
as part of the Service Concession intangible asset and are amortised on a straight-line basis over the remaining period
of the Concession Arrangement.
b) Trademarks and Licences
Acquired trademarks and licences are shown at historical cost. Trademarks and licences have a finite useful life and are
carried at cost less accumulated amortisation. Amortisation is calculated using the straight-line method to allocate the
cost of trademarks and licences over their estimated useful lives.
c) Computer Software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the
specific software. These costs are amortised over their estimated useful lives (3 to 4 years).
Costs associated with developing or maintaining computer software programmes are recognised as an expense as
incurred. Costs that are directly associated with the development of identifiable and unique software products controlled
by the Company, and that will probably generate economic benefits exceeding costs beyond one year, are recognised
as intangible assets. Costs include the employee costs incurred as a result of developing software and an appropriate
portion of relevant overheads.
Computer software development costs that recognised as assets are amortised over their estimated useful lives (3 to 4 years).
2.5 Impairment of non-Financial Assets
Assets that have an indefinite useful life, for example goodwill, are not subject to amortisation and are tested annually
for impairment. Assets, such as the Service Concession intangible asset, that are subject to amortisation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-
generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal
of the impairment at each reporting date.
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 26 OF 69
