Page 69 - Annual Report 2013
P. 69
Annual Report 2013
For defined contribution plans, the Company pays contributions to publicly or privately administered
pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further
payment obligations once the contributions have been paid. The contributions are recognised as
employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future payments is available.
2.15.2 Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these
benefits. The Company recognises termination benefits when it is demonstrably committed to either:
terminating the employment of current employees according to a detailed formal plan without possibil-
ity of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits falling due more than 12 months after the balance sheet date are discounted to
present value.
2.15.3 Bonus plans
The Company recognises a liability and an expense for bonuses based on achievement of predefined
financial and operational targets. The Company recognises a provision where contractually obliged or
where there is a past practice that has created a constructive obligation.
2.16 Provisions
Provisions are recognised when: the Company has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated. Provisions include the obligations under the Service Conces-
sion Arrangement to maintain the serviceability of major infrastructure components, such as runways,
taxiways, aprons, etc. which require major overhauls at regular intervals during the concession period.
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settle-
ment is determined by considering the class of obligations as a whole. A provision is recognised even if
the likelihood of an outflow with respect to any one item included in the same class of obligations may
be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to passage of time is recognised as
interest expense.
2.17 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax,
returns, rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of
the Company’s activities as described below. The amount of revenue is not considered to be reliably
measurable until all contingencies relating to the sale have been resolved. The Company bases its
estimates on historical results, taking into consideration the type of customer, the type of transaction
and the specifics of each arrangement.
2.17.1 Sales of services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing, park-
ing and servicing of aircrafts; the handling of passengers, baggage, cargo or mail on airport premises;
and the transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated). 28 of 58
For defined contribution plans, the Company pays contributions to publicly or privately administered
pension insurance plans on a mandatory, contractual or voluntary basis. The Company has no further
payment obligations once the contributions have been paid. The contributions are recognised as
employee benefit expense when they are due. Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in the future payments is available.
2.15.2 Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these
benefits. The Company recognises termination benefits when it is demonstrably committed to either:
terminating the employment of current employees according to a detailed formal plan without possibil-
ity of withdrawal; or providing termination benefits as a result of an offer made to encourage voluntary
redundancy. Benefits falling due more than 12 months after the balance sheet date are discounted to
present value.
2.15.3 Bonus plans
The Company recognises a liability and an expense for bonuses based on achievement of predefined
financial and operational targets. The Company recognises a provision where contractually obliged or
where there is a past practice that has created a constructive obligation.
2.16 Provisions
Provisions are recognised when: the Company has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated. Provisions include the obligations under the Service Conces-
sion Arrangement to maintain the serviceability of major infrastructure components, such as runways,
taxiways, aprons, etc. which require major overhauls at regular intervals during the concession period.
Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settle-
ment is determined by considering the class of obligations as a whole. A provision is recognised even if
the likelihood of an outflow with respect to any one item included in the same class of obligations may
be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to passage of time is recognised as
interest expense.
2.17 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax,
returns, rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of
the Company’s activities as described below. The amount of revenue is not considered to be reliably
measurable until all contingencies relating to the sale have been resolved. The Company bases its
estimates on historical results, taking into consideration the type of customer, the type of transaction
and the specifics of each arrangement.
2.17.1 Sales of services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing, park-
ing and servicing of aircrafts; the handling of passengers, baggage, cargo or mail on airport premises;
and the transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated). 28 of 58
