Page 64 - Annual Report 2013
P. 64
Financial Statements
Annual Improvements to IFRSs 2013
(eective for annual periods beginning on or after 1 July 2014)
The amendments set out below describe the key changes to four IFRSs following the publication of the
results of the IASB’s 2011-13 cycle of the annual improvements project. The improvements have not yet
been endorsed by the EU.
IFRS 3 “Business combinations”
This amendment clarifies that IFRS 3 does not apply to the accounting for the formation of any joint
arrangement under IFRS 11 in the financial statements of the joint arrangement itself.
IFRS 13 “Fair value measurement”
The amendment clarifies that the portfolio exception in IFRS 13 applies to all contracts (including non-fi-
nancial contracts) within the scope of IAS 39/IFRS 9.
IAS 40 “Investment property”
The standard is amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive.
IFRS 1 “First-time adoption of International Financial Reporting Standards”
The amendment clarifies that a first-time adopter can use either the old or the new version of a revised
standard when early adoption is permitted.
2.2 Foreign currency translation
2.2.1 Functional and presentation currency
Items included in the financial statements of the Company are measured using
the currency of the primary economic environment in which the Company operates (‘the functional
currency’). The Company’s financial statements are presented in EURO (€), which is the Company’s
functional and presentation currency.
2.2.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates of mone-
tary assets and liabilities denominated in foreign currencies are recognised in the income statement.
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 10 years Vehicles 8-10 years
Fixtures & Equipment 10 years Hardware 5 years
23 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
Annual Improvements to IFRSs 2013
(eective for annual periods beginning on or after 1 July 2014)
The amendments set out below describe the key changes to four IFRSs following the publication of the
results of the IASB’s 2011-13 cycle of the annual improvements project. The improvements have not yet
been endorsed by the EU.
IFRS 3 “Business combinations”
This amendment clarifies that IFRS 3 does not apply to the accounting for the formation of any joint
arrangement under IFRS 11 in the financial statements of the joint arrangement itself.
IFRS 13 “Fair value measurement”
The amendment clarifies that the portfolio exception in IFRS 13 applies to all contracts (including non-fi-
nancial contracts) within the scope of IAS 39/IFRS 9.
IAS 40 “Investment property”
The standard is amended to clarify that IAS 40 and IFRS 3 are not mutually exclusive.
IFRS 1 “First-time adoption of International Financial Reporting Standards”
The amendment clarifies that a first-time adopter can use either the old or the new version of a revised
standard when early adoption is permitted.
2.2 Foreign currency translation
2.2.1 Functional and presentation currency
Items included in the financial statements of the Company are measured using
the currency of the primary economic environment in which the Company operates (‘the functional
currency’). The Company’s financial statements are presented in EURO (€), which is the Company’s
functional and presentation currency.
2.2.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates of mone-
tary assets and liabilities denominated in foreign currencies are recognised in the income statement.
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 10 years Vehicles 8-10 years
Fixtures & Equipment 10 years Hardware 5 years
23 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
