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FINANCIAL STATEMENTS
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.
a) Sales of Goods
Revenue from the sales of goods is recognised in the income statement when the significant risks and rewards of ownership
have been transferred to the buyer.
b) Sales of Services
Revenue from services rendered is recognised in the income statement when delivery of the services takes place. No
revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or associated.
Refer to note 4.1 for recognition of income from airport charges and IT & T services.
c) Rental Income
Rental income from operating leases entered into by the Company as a lessor is recognised on a straight-line basis over
the lease term.
d) Interest Income
Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired,
the Company reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at
the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest
income on impaired loans and receivables is recognised using the original effective interest rate.
e) Dividend income
Dividend income is recognised when the right to receive payment is established.
2.19 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset
and settle the liability simultaneously.
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 32 OF 69
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.
a) Sales of Goods
Revenue from the sales of goods is recognised in the income statement when the significant risks and rewards of ownership
have been transferred to the buyer.
b) Sales of Services
Revenue from services rendered is recognised in the income statement when delivery of the services takes place. No
revenue is recognised if there are significant uncertainties regarding recovery of the consideration due or associated.
Refer to note 4.1 for recognition of income from airport charges and IT & T services.
c) Rental Income
Rental income from operating leases entered into by the Company as a lessor is recognised on a straight-line basis over
the lease term.
d) Interest Income
Interest income is recognised on a time-proportion basis using the effective interest method. When a receivable is impaired,
the Company reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at
the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest
income on impaired loans and receivables is recognised using the original effective interest rate.
e) Dividend income
Dividend income is recognised when the right to receive payment is established.
2.19 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or realise the asset
and settle the liability simultaneously.
Financial Statements as at 31 December 2009 (Amounts in Euros unless otherwise stated) PAGE 32 OF 69
