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P. 77
2011
5.21 Provisions As at Additions Utilisations Releases As at
31 Dec 2011
Analysis of provisions 1 Jan 2011
9,820,836
8,936,523 884,313 0 0
Claims on airport charges 12,566,210
Restoration expenses 10,910,459 1,817,851 162,100 0
Net other provisions 2,690,812
832,229 1,998,709 140,126 0
To be settled over 1 year 25,077,858
Total provisions 20,679,211 4,700,873 302,226 0 25,077,858
20,679,211 4,700,873 302,226 0
The provision for claims on airport charges relates to the interim legal measures taken by airport users in the First Instance
Court with respect to the legality of the pricing of certain airport charges. Despite the initial favourable outcome by the
First Instance Court, management believes that there are risks and uncertainties associated with this matter that warrant
continuing provisioning until a final legal resolution is reached. The recorded provision represents management’s best
estimate of the Company’s exposure. The timing of the eventual settlement of this risk is uncertain and substantially
depends on the timing and progress of the legal proceedings.
The provision for restoration expenses relates to the future expenses that result from the Company’s contractual
obligations to maintain or to restore the infrastructure to a specified condition before it is handed over to the Greek
State at the end of the service arrangement. It is expected that an aggregate amount of €34m will be spent on major
restoration activities commencing in year 2015 through to 2025 based on management’s current best estimates.
5.22 Income & deferred tax liabilities
Income tax liabilities
The amount reflects the income tax payable on the dividends declared for distribution, although the Company is in a tax
loss position, in accordance with paragraph 1 of article 99 of law 2238/1994.
At the balance sheet date the recognition of the income tax liability amounting to €27,750,000 (2010: €23,684,211) was
determined by applying the following formula: Dividends declared for distribution * Income Tax Rate / (1- Income Tax Rate)
Also note that 2010 tax payable balance includes the special tax contribution of €26,326,312.
Deferred tax assets & liabilities
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 42 of 50
5.21 Provisions As at Additions Utilisations Releases As at
31 Dec 2011
Analysis of provisions 1 Jan 2011
9,820,836
8,936,523 884,313 0 0
Claims on airport charges 12,566,210
Restoration expenses 10,910,459 1,817,851 162,100 0
Net other provisions 2,690,812
832,229 1,998,709 140,126 0
To be settled over 1 year 25,077,858
Total provisions 20,679,211 4,700,873 302,226 0 25,077,858
20,679,211 4,700,873 302,226 0
The provision for claims on airport charges relates to the interim legal measures taken by airport users in the First Instance
Court with respect to the legality of the pricing of certain airport charges. Despite the initial favourable outcome by the
First Instance Court, management believes that there are risks and uncertainties associated with this matter that warrant
continuing provisioning until a final legal resolution is reached. The recorded provision represents management’s best
estimate of the Company’s exposure. The timing of the eventual settlement of this risk is uncertain and substantially
depends on the timing and progress of the legal proceedings.
The provision for restoration expenses relates to the future expenses that result from the Company’s contractual
obligations to maintain or to restore the infrastructure to a specified condition before it is handed over to the Greek
State at the end of the service arrangement. It is expected that an aggregate amount of €34m will be spent on major
restoration activities commencing in year 2015 through to 2025 based on management’s current best estimates.
5.22 Income & deferred tax liabilities
Income tax liabilities
The amount reflects the income tax payable on the dividends declared for distribution, although the Company is in a tax
loss position, in accordance with paragraph 1 of article 99 of law 2238/1994.
At the balance sheet date the recognition of the income tax liability amounting to €27,750,000 (2010: €23,684,211) was
determined by applying the following formula: Dividends declared for distribution * Income Tax Rate / (1- Income Tax Rate)
Also note that 2010 tax payable balance includes the special tax contribution of €26,326,312.
Deferred tax assets & liabilities
The analysis of deferred tax assets and deferred tax liabilities is as follows:
Financial Statements as at 31 December 2011 (Amounts in Euros unless otherwise stated) Page 42 of 50
