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2.3 Property, plant and equipment
Property, plant and equipment mainly comprise movable assets, such as vehicles and furniture & fixtures which do not
form part of the service concession intangible asset.
The items included under the heading “Property, plant & equipment” in the accompanying statement of financial position
are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost
of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation is calculated using the straight-line method to allocate the cost of the various categories of property, plant
and equipment to their residual values over their estimated useful lives, as follows:
Mechanical Equipment 6-15 years
5-9 years
Vehicles 5-6 years
3-4 years
Fixtures & Equipment
Hardware
Land, buildings, installations, fencing, aircraft ground power system, runways, taxiways, aircraft bridges and aprons held
under the Service Concession Arrangement constitutes the total infrastructure that has been recognised as an intangible
asset.(refer to accounting policy 2.4).
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised
within other (losses)/gains – net, in the income statement.
2.4 Intangible assets
2.4.1 Service concession arrangement
The Service Concession Arrangement is the right that has been granted by the Greek State to the Company for the
purpose of the finance, construction, operation and development of the Athens International Airport. The above right
has a finite useful life of approximately 25 years which is equal to the duration of the concession arrangement following
the completion of the construction phase.
The Service Concession Arrangement has been accounted under the intangible asset model since the Company, as
operator, is paid by the users and the concession grantor has not provided any contractual guarantees with respect to
the recoverability of the investment. The intangible asset corresponds to the right granted by the concession grantor to
the Company to charge users of the airport services.
The Service Concession Arrangement consists of the fair value of acquiring the service concession which principally
includes the cost of the usufruct and the costs incurred to construct the infrastructure (net of government grants
received) as well as the present value of future obligations for the grant of rights fee 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.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 22 of 54
Property, plant and equipment mainly comprise movable assets, such as vehicles and furniture & fixtures which do not
form part of the service concession intangible asset.
The items included under the heading “Property, plant & equipment” in the accompanying statement of financial position
are stated at historical cost less accumulated depreciation and impairment losses. Historical cost includes expenditure
that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Company and the cost
of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and
maintenance are charged to the income statement during the financial period in which they are incurred.
Depreciation is calculated using the straight-line method to allocate the cost of the various categories of property, plant
and equipment to their residual values over their estimated useful lives, as follows:
Mechanical Equipment 6-15 years
5-9 years
Vehicles 5-6 years
3-4 years
Fixtures & Equipment
Hardware
Land, buildings, installations, fencing, aircraft ground power system, runways, taxiways, aircraft bridges and aprons held
under the Service Concession Arrangement constitutes the total infrastructure that has been recognised as an intangible
asset.(refer to accounting policy 2.4).
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised
within other (losses)/gains – net, in the income statement.
2.4 Intangible assets
2.4.1 Service concession arrangement
The Service Concession Arrangement is the right that has been granted by the Greek State to the Company for the
purpose of the finance, construction, operation and development of the Athens International Airport. The above right
has a finite useful life of approximately 25 years which is equal to the duration of the concession arrangement following
the completion of the construction phase.
The Service Concession Arrangement has been accounted under the intangible asset model since the Company, as
operator, is paid by the users and the concession grantor has not provided any contractual guarantees with respect to
the recoverability of the investment. The intangible asset corresponds to the right granted by the concession grantor to
the Company to charge users of the airport services.
The Service Concession Arrangement consists of the fair value of acquiring the service concession which principally
includes the cost of the usufruct and the costs incurred to construct the infrastructure (net of government grants
received) as well as the present value of future obligations for the grant of rights fee 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.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 22 of 54
