Page 60 - Annual Report 2013
P. 60
Financial Statements
Notes to the financial statements
1 Incorporation & activities of the Company
Athens International Airport S.A. (the Company) is active in the financing, construction and operation of
civil airports and related activities. As a civil airport operator the Company manages the Athens Inter-
national Airport at Spata, Greece. The Company is a Societe Anonyme incorporated and domiciled in
Greece. The address of its registered office is Spata, Attica 190 19.
The Company was established on 31 July 1995 by the Greek State & Private Investors for the purpose
of the finance, construction, operation and development of the new international airport at Spata Attica.
In exchange for the finance, construction, operation and development of the airport the Greek State
granted the Athens International Airport S.A. a 30 year concession commencing on 11 June 1996. At the
end of the concession arrangement (11 June 2026) the airport together with all usufruct additions will
revert to the Greek State, which will enjoy all rights of ownership over these without payment of any kind
and clear of any security, unless the concession arrangement is renewed.
The Company’s return from air activities is capped at 15% on the capital allocated to air activities. In the
event that the Company’s actual compounded cumulative return exceeds 15%, in 3 out of any 4 consec-
utive financial periods, the Company is obliged to pay any excess return to the Greek State.
The terms and conditions of the concession for the Athens International Airport are stipulated in the
Airport Development Agreement (“ADA”). The ADA and the Company’s Articles of Association were
ratified and enacted under Law 2338/14.9.1995.
The Company commenced its commercial operations in March 2001 following a construction period of
approximately 5 years initiated in September 1996.
The number of open-ended staff employed at year-end was 635 employees, compared to 642 employ-
ees at the end of 2012.
The financial statements have been approved by the Board of Directors on 30 April 2014.
2 Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out
below. These policies have consistently been applied to all the years presented.
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with International Finan-
cial Reporting Standards as adopted by the European Union, IFRIC Interpretations and the Companies
Act 2190/1920 as applicable to companies reporting under IFRS. The Company’s financial statements
have been prepared under the historical cost convention.
2.1.1 Going concern
As a result of the funding activities undertaken and the increased focus on working capital, the Compa-
ny’s forecasts and projections, taking account of reasonably possible changes in trading performance,
show that the Company should be able to operate within the level of its current financing. Currently
interest expenses are covered by operating profits more than 2 times.
After making enquiries, management has reasonable expectations that the Company has adequate
resources to continue in operational existence for the foreseeable future. The Company therefore
continues to adopt the going concern basis in preparing its financial statements.
2.1.2 Changes in accounting policies and disclosures
New standards, amendments to standards and interpretations: Certain new standards, amendments
to standards and interpretations have been issued that are mandatory for periods beginning during
the current financial year and subsequent years. The Company’s evaluation of the effect of these new
standards, amendments to standards and interpretations is as follows:
19 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
Notes to the financial statements
1 Incorporation & activities of the Company
Athens International Airport S.A. (the Company) is active in the financing, construction and operation of
civil airports and related activities. As a civil airport operator the Company manages the Athens Inter-
national Airport at Spata, Greece. The Company is a Societe Anonyme incorporated and domiciled in
Greece. The address of its registered office is Spata, Attica 190 19.
The Company was established on 31 July 1995 by the Greek State & Private Investors for the purpose
of the finance, construction, operation and development of the new international airport at Spata Attica.
In exchange for the finance, construction, operation and development of the airport the Greek State
granted the Athens International Airport S.A. a 30 year concession commencing on 11 June 1996. At the
end of the concession arrangement (11 June 2026) the airport together with all usufruct additions will
revert to the Greek State, which will enjoy all rights of ownership over these without payment of any kind
and clear of any security, unless the concession arrangement is renewed.
The Company’s return from air activities is capped at 15% on the capital allocated to air activities. In the
event that the Company’s actual compounded cumulative return exceeds 15%, in 3 out of any 4 consec-
utive financial periods, the Company is obliged to pay any excess return to the Greek State.
The terms and conditions of the concession for the Athens International Airport are stipulated in the
Airport Development Agreement (“ADA”). The ADA and the Company’s Articles of Association were
ratified and enacted under Law 2338/14.9.1995.
The Company commenced its commercial operations in March 2001 following a construction period of
approximately 5 years initiated in September 1996.
The number of open-ended staff employed at year-end was 635 employees, compared to 642 employ-
ees at the end of 2012.
The financial statements have been approved by the Board of Directors on 30 April 2014.
2 Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out
below. These policies have consistently been applied to all the years presented.
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with International Finan-
cial Reporting Standards as adopted by the European Union, IFRIC Interpretations and the Companies
Act 2190/1920 as applicable to companies reporting under IFRS. The Company’s financial statements
have been prepared under the historical cost convention.
2.1.1 Going concern
As a result of the funding activities undertaken and the increased focus on working capital, the Compa-
ny’s forecasts and projections, taking account of reasonably possible changes in trading performance,
show that the Company should be able to operate within the level of its current financing. Currently
interest expenses are covered by operating profits more than 2 times.
After making enquiries, management has reasonable expectations that the Company has adequate
resources to continue in operational existence for the foreseeable future. The Company therefore
continues to adopt the going concern basis in preparing its financial statements.
2.1.2 Changes in accounting policies and disclosures
New standards, amendments to standards and interpretations: Certain new standards, amendments
to standards and interpretations have been issued that are mandatory for periods beginning during
the current financial year and subsequent years. The Company’s evaluation of the effect of these new
standards, amendments to standards and interpretations is as follows:
19 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
