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P. 59
2011
For defined contribution plans, the Company pays contributions to publicly or privately administered pension insurance plans
on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions
have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
b) 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 12 months after the balance sheet date
are discounted to present value.
c) Bonus plans
The Company recognises a liability and an expense for bonuses based on achievement of predefined financial and
operational targets. The Company recognises a provision where contractually obliged or where there is a past practice
that has created a constructive obligation.
2.16 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.
2.17 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 services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing, parking and 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.
“Non Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and supervision of the following
services, facilities and equipment: car parking, general retail shops, restaurants, bars and other refreshment facilities,
vehicle rental, porter service, hotels etc.
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. Each arrival of an aircraft and its
subsequent departure is considered as a cycle of movement/flight where all necessary services have been rendered.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 24 of 50
For defined contribution plans, the Company pays contributions to publicly or privately administered pension insurance plans
on a mandatory, contractual or voluntary basis. The Company has no further payment obligations once the contributions
have been paid. The contributions are recognised as employee benefit expense when they are due. Prepaid contributions are
recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.
b) 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 12 months after the balance sheet date
are discounted to present value.
c) Bonus plans
The Company recognises a liability and an expense for bonuses based on achievement of predefined financial and
operational targets. The Company recognises a provision where contractually obliged or where there is a past practice
that has created a constructive obligation.
2.16 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.
2.17 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 services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing, parking and 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.
“Non Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and supervision of the following
services, facilities and equipment: car parking, general retail shops, restaurants, bars and other refreshment facilities,
vehicle rental, porter service, hotels etc.
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. Each arrival of an aircraft and its
subsequent departure is considered as a cycle of movement/flight where all necessary services have been rendered.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 24 of 50
