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Financial Statements
Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is
calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including “Current and non-
current borrowings” as shown in the statement of financial position) less cash and cash equivalents and current held-to-
maturity financial assets. Total capital is calculated as ‘equity’ as shown in the statement of financial position plus net debt.
The gearing ratios at 31 December 2012 and 2011 were as follows:
Gearing ratio 2012 2011
Total borrowings 623,236,490 677,727,647
Less: Cash & cash equivalent and current held-to maturity assets (165,007,784) (266,971,892)
Net debt 458,228,706 410,755,755
Total capital – (equity plus net debt) 889,622,400 876,360,791
Gearing ratio 52% 47%
Current held-to-maturity financial assets are also included in the above calculation, as they are an integral part of the Company’s overall cash management strategy.
4 Critical accounting estimates and judgements
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
4.1 Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition,
seldom equal the related actual results. The accounting estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next year are disclosed bellow:
4.1.1 Taxes
The internal control procedures for the related tax risks are part of Company’s control system. The general tax risk for the
Company concerns the timely submission of complete tax returns, the payment of the tax amounts concerned as well as
compliance with all tax laws and regulations and reporting rules specifically relating to corporate income tax.
The Company is subject to income tax, VAT and other taxes in Greece. Significant judgement is sometimes required
in determining the Company’s tax position for such taxes in certain instances due to the particular tax regime, under
the Airport Development Agreement, applicable to the Company’s operations, which is subject to challenge by the tax
authorities on the grounds of ambiguity or different interpretation with tax laws. The Company recognises liabilities for
anticipated tax audit issues based on estimates of whether additional taxes will arise or tax losses reduced. Where that
final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact
the current tax, deferred tax and other tax assets and liabilities in the period during which such determination is made.
4.1.2 Provision for restoration cost
Provision for restoration cost includes future expenses for the major overhauls of roads, runways, taxiways and replacement
of airfield lighting and baggage handling equipment. Significant estimates are required to determine the level of provision
such as the timing of the expenditure, the extension of the works and the amount that it will be expensed in the future. The
nominal value of the provision for restoration cost is annually determined by a qualified department within the Company
based on international experience and the specific conditions relating to the operations of the airport. The amount of the
provision is discounted at balance sheet date by using the risk free rate for similar time duration.
4.2 Critical judgements in applying the entity’s accounting policies
There were no critical judgements necessary in applying the Company’s accounting policies.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 33 of 54
Consistent with others in the industry, the Company monitors capital on the basis of the gearing ratio. This ratio is
calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including “Current and non-
current borrowings” as shown in the statement of financial position) less cash and cash equivalents and current held-to-
maturity financial assets. Total capital is calculated as ‘equity’ as shown in the statement of financial position plus net debt.
The gearing ratios at 31 December 2012 and 2011 were as follows:
Gearing ratio 2012 2011
Total borrowings 623,236,490 677,727,647
Less: Cash & cash equivalent and current held-to maturity assets (165,007,784) (266,971,892)
Net debt 458,228,706 410,755,755
Total capital – (equity plus net debt) 889,622,400 876,360,791
Gearing ratio 52% 47%
Current held-to-maturity financial assets are also included in the above calculation, as they are an integral part of the Company’s overall cash management strategy.
4 Critical accounting estimates and judgements
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
4.1 Critical accounting estimates and assumptions
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will by definition,
seldom equal the related actual results. The accounting estimates and assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next year are disclosed bellow:
4.1.1 Taxes
The internal control procedures for the related tax risks are part of Company’s control system. The general tax risk for the
Company concerns the timely submission of complete tax returns, the payment of the tax amounts concerned as well as
compliance with all tax laws and regulations and reporting rules specifically relating to corporate income tax.
The Company is subject to income tax, VAT and other taxes in Greece. Significant judgement is sometimes required
in determining the Company’s tax position for such taxes in certain instances due to the particular tax regime, under
the Airport Development Agreement, applicable to the Company’s operations, which is subject to challenge by the tax
authorities on the grounds of ambiguity or different interpretation with tax laws. The Company recognises liabilities for
anticipated tax audit issues based on estimates of whether additional taxes will arise or tax losses reduced. Where that
final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact
the current tax, deferred tax and other tax assets and liabilities in the period during which such determination is made.
4.1.2 Provision for restoration cost
Provision for restoration cost includes future expenses for the major overhauls of roads, runways, taxiways and replacement
of airfield lighting and baggage handling equipment. Significant estimates are required to determine the level of provision
such as the timing of the expenditure, the extension of the works and the amount that it will be expensed in the future. The
nominal value of the provision for restoration cost is annually determined by a qualified department within the Company
based on international experience and the specific conditions relating to the operations of the airport. The amount of the
provision is discounted at balance sheet date by using the risk free rate for similar time duration.
4.2 Critical judgements in applying the entity’s accounting policies
There were no critical judgements necessary in applying the Company’s accounting policies.
Financial Statements as at 31 December 2012 (Amounts in Euros unless otherwise stated) Page 33 of 54
