Page 68 - Annual Report 2013
P. 68
Financial Statements
Government grants relating to non-current assets are off-set against the cost of the relevant non-cur-
rent asset. The grant is recognised as income over the life of the respective depreciable non-current
asset by way of a reduction in the depreciation/amortisation charge.
2.14 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income
statement, except to the extent that it relates to items recognised in other comprehensive income or
directly in equity. In this case the tax is also recognised in other comprehensive income or directly in
equity, respectively.
The current income tax charge is calculated on the basis of Greek tax laws enacted or substantively
enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulations is subject to interpretation and establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax base of assets and liabilities and their carrying amounts in the Company’s financial
statements. However, the deferred income tax is not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business combination that at the time of the transaction
affects neither accounting nor taxable profit and loss. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will
be available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes assets and liabili-
ties relate to income taxes levied by the same taxation authority on either the taxable entity or different
taxable entities where there is an intention to settle the balances on a net basis.
2.15 Employee benefits
2.15.1 Pension obligations
The Company has both defined benefit and defined contribution plans. A defined contribution plan is a
pension plan under which the Company pays fixed contributions into a separate entity. The Company
has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the current and prior periods.
A defined benefit plan is a pension plan that typically defines an amount of pension benefits that an
employee will receive on retirement, usually dependent on one or more factors such as age, years of
service and compensation.
The Company’s obligations to pay employee retirement benefits under Law 2112/1920 are considered
and accounted for as defined benefit plans.
The liability recognised in the statement of financial position in respect of defined benefit pension plans
is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan
assets, together with adjustments for unrecognised actuarial gains or losses and past service costs.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit
credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of high-quality corporate bonds that are denominat-
ed in the currency in which the benefits will be paid and that have terms to maturity approximating to the
terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in income statement.
27 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
Government grants relating to non-current assets are off-set against the cost of the relevant non-cur-
rent asset. The grant is recognised as income over the life of the respective depreciable non-current
asset by way of a reduction in the depreciation/amortisation charge.
2.14 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income
statement, except to the extent that it relates to items recognised in other comprehensive income or
directly in equity. In this case the tax is also recognised in other comprehensive income or directly in
equity, respectively.
The current income tax charge is calculated on the basis of Greek tax laws enacted or substantively
enacted at the balance sheet date. Management periodically evaluates positions taken in tax returns
with respect to situations in which applicable tax regulations is subject to interpretation and establishes
provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax base of assets and liabilities and their carrying amounts in the Company’s financial
statements. However, the deferred income tax is not accounted for if it arises from initial recognition of
an asset or liability in a transaction other than a business combination that at the time of the transaction
affects neither accounting nor taxable profit and loss. Deferred income tax is determined using tax
rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are
expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will
be available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes assets and liabili-
ties relate to income taxes levied by the same taxation authority on either the taxable entity or different
taxable entities where there is an intention to settle the balances on a net basis.
2.15 Employee benefits
2.15.1 Pension obligations
The Company has both defined benefit and defined contribution plans. A defined contribution plan is a
pension plan under which the Company pays fixed contributions into a separate entity. The Company
has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the current and prior periods.
A defined benefit plan is a pension plan that typically defines an amount of pension benefits that an
employee will receive on retirement, usually dependent on one or more factors such as age, years of
service and compensation.
The Company’s obligations to pay employee retirement benefits under Law 2112/1920 are considered
and accounted for as defined benefit plans.
The liability recognised in the statement of financial position in respect of defined benefit pension plans
is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan
assets, together with adjustments for unrecognised actuarial gains or losses and past service costs.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit
credit method. The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows using interest rates of high-quality corporate bonds that are denominat-
ed in the currency in which the benefits will be paid and that have terms to maturity approximating to the
terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in income statement.
27 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
