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2.17.2 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.
2.17.3 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.
2.17.4 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.
2.17.5 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 statement of financial position 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.
2.21 Fair value estimation
The Company does not have any financial assets or liabilities that are carried at fair value at the balance sheet date.
For financial statement disclosure purposes:
• The carrying amounts of trade receivables and payables are assumed to approximate their fair values at the balance sheet date.
• The fair value of borrowings is estimated by discounting the future contractual cash flows at current market interest
rates that are available to the Company for similar financial instruments.
2.22 Associates
Associates are all entities over which the Company has significant influence but not control, generally accompanying a
shareholding of between 20% and 50% of the voting rights. Investments in associates are initially recognised at cost and
subsequently at cost less any impairment losses. Dividend income is recognised when the right to such income is established.
The Company's investment in its associate amounts to €3.2m as of 31 December 2012 represents less than 1% of total assets
at that date. This investment has not been accounted for under the equity method of accounting on the basis that it is not
considered to be material to the Company's operations and the departure from IAS 28 is unlikely to influence the economic
decision of the users of these financial statements.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 28 of 54
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.
2.17.3 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.
2.17.4 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.
2.17.5 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 statement of financial position 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.
2.21 Fair value estimation
The Company does not have any financial assets or liabilities that are carried at fair value at the balance sheet date.
For financial statement disclosure purposes:
• The carrying amounts of trade receivables and payables are assumed to approximate their fair values at the balance sheet date.
• The fair value of borrowings is estimated by discounting the future contractual cash flows at current market interest
rates that are available to the Company for similar financial instruments.
2.22 Associates
Associates are all entities over which the Company has significant influence but not control, generally accompanying a
shareholding of between 20% and 50% of the voting rights. Investments in associates are initially recognised at cost and
subsequently at cost less any impairment losses. Dividend income is recognised when the right to such income is established.
The Company's investment in its associate amounts to €3.2m as of 31 December 2012 represents less than 1% of total assets
at that date. This investment has not been accounted for under the equity method of accounting on the basis that it is not
considered to be material to the Company's operations and the departure from IAS 28 is unlikely to influence the economic
decision of the users of these financial statements.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 28 of 54
