Page 70 - Annual Report 2013
P. 70
Financial Statements
“Non-Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and supervi-
sion of the following services, facilities and equipment: car parking, general retail shops, restaurants,
bars and other refreshment facilities, vehicle rental, porter service, hotels etc.
Airport charges
Revenues related to airport charges are recognised in the income statement when the services are ren-
dered. The criteria for the recognition of income related to airport charges is the aircraft’s take off. Each
arrival of an aircraft and its subsequent departure is considered as a cycle of movement/flight where all
necessary services have been rendered.
Article 14 of Law 2338/1995, the “Airport Development Agreement”, sets the rules for defining the
charges levied to the users of the airport with respect of the facilities and services provided at the air-
port. According to the aforementioned article, the Company is entitled to determine at its discretion the
level of airport charges in order to achieve a maximum return of 15% per annum on the capital allocated
to air activities.
Concession agreements
The Company’s business area has at the balance sheet date, a total of 60 concession contracts, con-
cerning the performance of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commer-
cial activity in a specific location designated by the Company. The concession rights are calculated
according to an agreed scale as a percentage of the sales generated by the concession holder subject
to an annual minimum guaranteed fee. A separate part of the concession contract is entered into for the
space required for warehouses, for which a fixed rent is payable.
Concession revenues are recognised in the income statement on a monthly basis, while the settlement
of the annual concession fees is finally recognised by the Company in the income statement, at year-
end.
2.17.2 Building space rentals and services
The Company rents properties held under the concession and located within the airport premises
under operating leases. Revenue from such leases is recognised in the income statement on a straight
line basis over the lease term.
2.17.3 Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are
recognized in the income statement when the service is concluded. The criterion for the recognition of
revenue related to parking charges is the vehicle’s departure. Each arrival of a vehicle and its subse-
quent departure is considered as a cycle of movement where all services have been rendered.
2.17.4 Interest income
Interest income is recognised on a time-proportion basis using the effective interest method. When a
receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being the
estimated future cash flow discounted at the original effective interest rate of the instrument, and con-
tinues unwinding the discount as interest income. Interest income on impaired loans and receivables is
recognised using the original effective interest rate.
2.17.5 Dividend income
Dividend income is recognised when the right to receive payment is established.
2.18 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial posi-
tion when there is a legally enforceable right to offset the recognised amounts and there is an intention
to settle on a net basis, or realise the asset and settle the liability simultaneously.
29 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
“Non-Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and supervi-
sion of the following services, facilities and equipment: car parking, general retail shops, restaurants,
bars and other refreshment facilities, vehicle rental, porter service, hotels etc.
Airport charges
Revenues related to airport charges are recognised in the income statement when the services are ren-
dered. The criteria for the recognition of income related to airport charges is the aircraft’s take off. Each
arrival of an aircraft and its subsequent departure is considered as a cycle of movement/flight where all
necessary services have been rendered.
Article 14 of Law 2338/1995, the “Airport Development Agreement”, sets the rules for defining the
charges levied to the users of the airport with respect of the facilities and services provided at the air-
port. According to the aforementioned article, the Company is entitled to determine at its discretion the
level of airport charges in order to achieve a maximum return of 15% per annum on the capital allocated
to air activities.
Concession agreements
The Company’s business area has at the balance sheet date, a total of 60 concession contracts, con-
cerning the performance of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commer-
cial activity in a specific location designated by the Company. The concession rights are calculated
according to an agreed scale as a percentage of the sales generated by the concession holder subject
to an annual minimum guaranteed fee. A separate part of the concession contract is entered into for the
space required for warehouses, for which a fixed rent is payable.
Concession revenues are recognised in the income statement on a monthly basis, while the settlement
of the annual concession fees is finally recognised by the Company in the income statement, at year-
end.
2.17.2 Building space rentals and services
The Company rents properties held under the concession and located within the airport premises
under operating leases. Revenue from such leases is recognised in the income statement on a straight
line basis over the lease term.
2.17.3 Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are
recognized in the income statement when the service is concluded. The criterion for the recognition of
revenue related to parking charges is the vehicle’s departure. Each arrival of a vehicle and its subse-
quent departure is considered as a cycle of movement where all services have been rendered.
2.17.4 Interest income
Interest income is recognised on a time-proportion basis using the effective interest method. When a
receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being the
estimated future cash flow discounted at the original effective interest rate of the instrument, and con-
tinues unwinding the discount as interest income. Interest income on impaired loans and receivables is
recognised using the original effective interest rate.
2.17.5 Dividend income
Dividend income is recognised when the right to receive payment is established.
2.18 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial posi-
tion when there is a legally enforceable right to offset the recognised amounts and there is an intention
to settle on a net basis, or realise the asset and settle the liability simultaneously.
29 of 58 Financial Statements as at 31 December 2013 (Amounts in Euros unless otherwise stated).
