Page 68 - Annual Report 2015 EN
P. 68
Financial Statements
Computer software development costs that recognised as assets are depreciated over their estimated
useful lives (5 years).
2.5 Impairment of non- nancial 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 asset is reduced
by the same amount. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than
goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting
date.
2.6 Financial assets
2.6.1 Classi cation
The Company classifies its financial assets depending on the purpose for which the financial assets were
acquired. Management determines the classification of its financial assets at initial recognition.
The Company has three classes of financial assets comprising held-to-maturity investments, loans and
receivables and Available-for-sale financial assets. It does not hold any financial assets at fair value through
profit and loss.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. They are included in current assets, except for maturities greater than
12 months after the end of the reporting date, which are classified as non-current assets. The Company’s
loans and receivables recognised in the statement of financial position comprise “Trade and other
receivables” and “Cash and cash equivalents”. Refer to notes 2.8 and 2.9 respectively.
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments
and fixed maturities that company’s management has the positive intention and ability to hold to maturity,
other than:
• those that the Company upon initial recognition designates at fair value through profit or loss
• those that the Company designates as Available-for-sale
• those that meet the definition of loans and receivables
Available-for-sale financial assets are non-derivative financial assets that are either designated in this
category or not classified in any of the other categories. They are included in non-current assets unless the
investment matures or management intends to dispose of it within 12 months of the end of the reporting
period.
2.6.2 Recognition and measurement
Regular-way purchases and sales of financial assets are recognised on trade date – the date on which the
Company commits to purchase or sell the asset.
Loans and receivables are initially recognised at fair value and are subsequently measured at amortised
cost using the effective interest rate method.
Held-to-maturity financial assets are initially recognised at amortised cost and are subsequently measured
at amortised cost using the effective interest rate method.
Financial assets are derecognised only when the contractual rights to the cash flows from the financial
asset expire or the Company transfers substantially all risks and rewards of ownership.
Available-for-sale financial assets are upon initial measurement recognized at fair value including any
transaction cost that has been incurred upon acquisition. Subsequent to initial recognition Available-for-
sale financial assets are measured at fair value. All gains and losses arising from changes in fair value are
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
25 of 56
Computer software development costs that recognised as assets are depreciated over their estimated
useful lives (5 years).
2.5 Impairment of non- nancial 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 asset is reduced
by the same amount. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash flows (cash-generating units). Non-financial assets other than
goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting
date.
2.6 Financial assets
2.6.1 Classi cation
The Company classifies its financial assets depending on the purpose for which the financial assets were
acquired. Management determines the classification of its financial assets at initial recognition.
The Company has three classes of financial assets comprising held-to-maturity investments, loans and
receivables and Available-for-sale financial assets. It does not hold any financial assets at fair value through
profit and loss.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market. They are included in current assets, except for maturities greater than
12 months after the end of the reporting date, which are classified as non-current assets. The Company’s
loans and receivables recognised in the statement of financial position comprise “Trade and other
receivables” and “Cash and cash equivalents”. Refer to notes 2.8 and 2.9 respectively.
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments
and fixed maturities that company’s management has the positive intention and ability to hold to maturity,
other than:
• those that the Company upon initial recognition designates at fair value through profit or loss
• those that the Company designates as Available-for-sale
• those that meet the definition of loans and receivables
Available-for-sale financial assets are non-derivative financial assets that are either designated in this
category or not classified in any of the other categories. They are included in non-current assets unless the
investment matures or management intends to dispose of it within 12 months of the end of the reporting
period.
2.6.2 Recognition and measurement
Regular-way purchases and sales of financial assets are recognised on trade date – the date on which the
Company commits to purchase or sell the asset.
Loans and receivables are initially recognised at fair value and are subsequently measured at amortised
cost using the effective interest rate method.
Held-to-maturity financial assets are initially recognised at amortised cost and are subsequently measured
at amortised cost using the effective interest rate method.
Financial assets are derecognised only when the contractual rights to the cash flows from the financial
asset expire or the Company transfers substantially all risks and rewards of ownership.
Available-for-sale financial assets are upon initial measurement recognized at fair value including any
transaction cost that has been incurred upon acquisition. Subsequent to initial recognition Available-for-
sale financial assets are measured at fair value. All gains and losses arising from changes in fair value are
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
25 of 56
