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Financial Statements
Article 14 of law 2338/1995, 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 is entitled to determine at its discretion the level of airport charges in order to achieve a maximum
return of 15% per annum on the capital allocated to air activities.
Concession agreements
The Company’s business area has at the balance sheet date, a total of 62 concession contracts, concerning the performance
of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commercial activity in a specific
location designated by the Company. The concession rights are calculated according to an agreed scale as a percentage
of the sales generated by the concession holder subject to an annual minimum guaranteed fee. A separate part of the
concession contract is entered into for the space required for warehouses, for which a fixed rent is payable.
Concession revenues are recognised in the income statement on a monthly basis, while the settlement of the annual
concession fees is finally recognised by the Company in the income statement, at year-end.
b) Building space rentals and services
The Company rents properties held under the concession and located within the airport premises under operating leases.
Revenue from such leases is recognised in the income statement on a straight line basis over the lease term.
c) Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are recognized in the
income statement when the service is concluded. The criterion for the recognition of revenue related to parking charges
is the vehicle’s departure. Each arrival of a vehicle and its subsequent departure is considered as a cycle of movement
where all services have been rendered.
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.
2.18 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.
2.19 Leases
Leases under which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as
operating leases. Payments made by the Company under operating leases (net of any incentives received from the lessor)
are charged to the income statement on a straight-line basis over the period of the lease.
The Company does not lease any material property, plant or equipment under finance leases under which it substantially
retains all the risks and rewards of ownership.
2.20 Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in
the period in which the dividends are approved by the Company’s shareholders.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 25 of 50
Article 14 of law 2338/1995, 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 is entitled to determine at its discretion the level of airport charges in order to achieve a maximum
return of 15% per annum on the capital allocated to air activities.
Concession agreements
The Company’s business area has at the balance sheet date, a total of 62 concession contracts, concerning the performance
of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commercial activity in a specific
location designated by the Company. The concession rights are calculated according to an agreed scale as a percentage
of the sales generated by the concession holder subject to an annual minimum guaranteed fee. A separate part of the
concession contract is entered into for the space required for warehouses, for which a fixed rent is payable.
Concession revenues are recognised in the income statement on a monthly basis, while the settlement of the annual
concession fees is finally recognised by the Company in the income statement, at year-end.
b) Building space rentals and services
The Company rents properties held under the concession and located within the airport premises under operating leases.
Revenue from such leases is recognised in the income statement on a straight line basis over the lease term.
c) Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are recognized in the
income statement when the service is concluded. The criterion for the recognition of revenue related to parking charges
is the vehicle’s departure. Each arrival of a vehicle and its subsequent departure is considered as a cycle of movement
where all services have been rendered.
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.
2.18 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.
2.19 Leases
Leases under which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as
operating leases. Payments made by the Company under operating leases (net of any incentives received from the lessor)
are charged to the income statement on a straight-line basis over the period of the lease.
The Company does not lease any material property, plant or equipment under finance leases under which it substantially
retains all the risks and rewards of ownership.
2.20 Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s financial statements in
the period in which the dividends are approved by the Company’s shareholders.
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 25 of 50
