Page 67 - Annual Report 2013
P. 67
Annual Report 2013
If there is objective evidence that an impairment loss has been incurred on trade receivables or
held-to-maturity investments carried at amortised cost, the amount of the loss is measured as the
difference between the asset’s carrying amount and the present value of estimated future cash flows
(excluding future credit losses that have been incurred) discounted at the financial asset’s original
effective interest rate. The carrying amount of the asset is reduced through the use of an allowance
account, and the amount of the loss is recognised in the income statement under provision for impair-
ment.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised (such as improved credit
rating), the previously recognised impairment loss is reversed by adjusting the allowance account. The
amount of the reversal is recognised in the income statement.
2.7 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using
the weighted average method. Net realisable value is the estimated selling price in the ordinary course
of business, less applicable variable selling expenses.
2.8 Trade receivables
Trade receivables are amounts due from customers for aeronautical and other services performed
in the ordinary course of business. If collection is expected in one year or less, they are classified as
current assets. If not, they are presented as non-current assets.
2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new
ordinary shares are shown in equity as a reduction, net of tax, from the proceeds.
2.11 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. Accounts payable are classified as current liabilities if payment is
due within one year or less. If not, they are presented as non-current liabilities. Trade payables are rec-
ognised initially at fair value and subsequently measured at amortised cost using the effective interest
method.
2.12 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are sub-
sequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and
the redemption value is recognised in the income statement over the period of the borrowings using the
effective interest method.
Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a
qualifying asset.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the balance sheet date.
2.13 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance
that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to borrowing and other related costs are recognised in the income state-
ment to match them with the costs that they are intended to compensate.
Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated). 26 of 58
If there is objective evidence that an impairment loss has been incurred on trade receivables or
held-to-maturity investments carried at amortised cost, the amount of the loss is measured as the
difference between the asset’s carrying amount and the present value of estimated future cash flows
(excluding future credit losses that have been incurred) discounted at the financial asset’s original
effective interest rate. The carrying amount of the asset is reduced through the use of an allowance
account, and the amount of the loss is recognised in the income statement under provision for impair-
ment.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised (such as improved credit
rating), the previously recognised impairment loss is reversed by adjusting the allowance account. The
amount of the reversal is recognised in the income statement.
2.7 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using
the weighted average method. Net realisable value is the estimated selling price in the ordinary course
of business, less applicable variable selling expenses.
2.8 Trade receivables
Trade receivables are amounts due from customers for aeronautical and other services performed
in the ordinary course of business. If collection is expected in one year or less, they are classified as
current assets. If not, they are presented as non-current assets.
2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new
ordinary shares are shown in equity as a reduction, net of tax, from the proceeds.
2.11 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. Accounts payable are classified as current liabilities if payment is
due within one year or less. If not, they are presented as non-current liabilities. Trade payables are rec-
ognised initially at fair value and subsequently measured at amortised cost using the effective interest
method.
2.12 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are sub-
sequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and
the redemption value is recognised in the income statement over the period of the borrowings using the
effective interest method.
Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a
qualifying asset.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the balance sheet date.
2.13 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance
that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to borrowing and other related costs are recognised in the income state-
ment to match them with the costs that they are intended to compensate.
Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated). 26 of 58
