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Financial Statements
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 Service Concession Arrangement.
b) 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, 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. If the recoverable amount is lower than the
carrying amount, the difference is recognised as an impairment loss in the income statement and the carrying amount
of the asset is reduced by the same amount. 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.
2.6 Financial assets
2.6.1 Classification
The Company classifies its financial assets depending on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
The Company has a single class of financial assets comprising loans and receivables. It does not hold any financial assets
at fair value through profit and loss nor any available for sale financial assets.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. They are included in current assets, except for maturities greater than 12 months after the end of the
reporting date, which are classified as non-current assets. The Company’s loans and receivables recognised in the balance
sheet comprise “Trade and other receivables” and “Cash and cash equivalents”. Refer to notes 2.8 and 2.9 respectively.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 21 of 50
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 Service Concession Arrangement.
b) 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, 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. If the recoverable amount is lower than the
carrying amount, the difference is recognised as an impairment loss in the income statement and the carrying amount
of the asset is reduced by the same amount. 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.
2.6 Financial assets
2.6.1 Classification
The Company classifies its financial assets depending on the purpose for which the financial assets were acquired.
Management determines the classification of its financial assets at initial recognition.
The Company has a single class of financial assets comprising loans and receivables. It does not hold any financial assets
at fair value through profit and loss nor any available for sale financial assets.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market. They are included in current assets, except for maturities greater than 12 months after the end of the
reporting date, which are classified as non-current assets. The Company’s loans and receivables recognised in the balance
sheet comprise “Trade and other receivables” and “Cash and cash equivalents”. Refer to notes 2.8 and 2.9 respectively.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 21 of 50
