Page 65 - Annual Report 2013
P. 65
Annual Report 2013
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 carry-
ing 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 Inter-
national 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 contractu-
al 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 dura-
tion 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.
2.4.2 Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are depreciated over their estimated useful lives (5 years).
Costs associated with developing or maintaining computer software programmes are recognised as
an expense as incurred. Costs that are directly associated with the development of identifiable and
unique software products controlled by the Company, and that will probably generate economic bene-
fits exceeding costs beyond one year, are recognised as intangible assets. Costs include the employee
costs incurred as a result of developing software and an appropriate portion of relevant overheads.
Computer software development costs that recognised as assets are depreciated over their estimated
useful lives (5 years).
2.5 Impairment of non-financial assets
Assets, such as the service concession intangible asset, that are subject to amortisation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. If the recoverable amount is lower than the carrying amount, the
difference is recognised as an impairment loss in the income statement and the carrying amount of the
Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated). 24 of 58
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 carry-
ing 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 Inter-
national 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 contractu-
al 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 dura-
tion 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.
2.4.2 Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and
bring to use the specific software. These costs are depreciated over their estimated useful lives (5 years).
Costs associated with developing or maintaining computer software programmes are recognised as
an expense as incurred. Costs that are directly associated with the development of identifiable and
unique software products controlled by the Company, and that will probably generate economic bene-
fits exceeding costs beyond one year, are recognised as intangible assets. Costs include the employee
costs incurred as a result of developing software and an appropriate portion of relevant overheads.
Computer software development costs that recognised as assets are depreciated over their estimated
useful lives (5 years).
2.5 Impairment of non-financial assets
Assets, such as the service concession intangible asset, that are subject to amortisation are reviewed
for impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value
less costs to sell and value in use. If the recoverable amount is lower than the carrying amount, the
difference is recognised as an impairment loss in the income statement and the carrying amount of the
Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated). 24 of 58
