Page 69 - Annual Report 2015 EN
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Annual Report 2015
recognized directly in other comprehensive income, except with respect to impairment losses that are
recognized in profit or loss.
2.6.3 Impairment
The Company assesses at each end of the reporting period whether there is objective evidence that
a financial asset or group of financial assets is impaired. A financial asset or group of financial assets
is impaired and impairment losses are incurred only if there is objective evidence of impairment as a
result of one or more events that have occurred after the initial recognition of the asset (a probable ‘loss
event’) and that probable loss event (or events) has an impact on the estimated future cash flows of
the financial asset or group of financial assets that can be reliably estimated. Objective evidence that a
financial asset or group of assets is impaired includes observable data that comes to the attention of the
Company about the following events:
• Significant financial difficulty of the issuer or debtor;
• A breach of contract, such as a default or delinquency in payments;
• It is becoming probable that the issuer or debtor will enter bankruptcy or other financial
reorganisation;
• The disappearance of an active market for that financial asset because of financial difficulties; or
• Observable data indicating that there is a measurable decrease in the estimated future cash flow from
a group of financial assets since the initial recognition of those assets, including:
• adverse changes in the payment status of issuers or debtors; or
• national or local economic conditions that correlate with defaults on the assets.
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 impairment. 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.
As regards Available-for-sale financial assets, if there is objective evidence that impairment has been
incurred, the amount that has to be recognized as an impairment loss is the difference between the
acquisition cost and the current fair value, less any impairment loss previously recognised in the income
statement. The impairment loss is transferred from other comprehensive income, where it has been
previously recognised, to the income statement. Objective evidence of impairment is, either a significant
in terms of fair value, or prolonged in terms of period, decline in the fair value of the financial asset. A
decline is considered significant when the difference of the fair value and the cost of the financial asset
reach 20.0% and irrespective of percentage difference is considered prolonged if the fair value is below
its costs for a period of 6 months. Any subsequent reversals of impairment losses with respect to equity
instruments cannot be recognized in profit or loss but have to be reflected as an increase directly in
other comprehensive income.
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.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
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recognized directly in other comprehensive income, except with respect to impairment losses that are
recognized in profit or loss.
2.6.3 Impairment
The Company assesses at each end of the reporting period whether there is objective evidence that
a financial asset or group of financial assets is impaired. A financial asset or group of financial assets
is impaired and impairment losses are incurred only if there is objective evidence of impairment as a
result of one or more events that have occurred after the initial recognition of the asset (a probable ‘loss
event’) and that probable loss event (or events) has an impact on the estimated future cash flows of
the financial asset or group of financial assets that can be reliably estimated. Objective evidence that a
financial asset or group of assets is impaired includes observable data that comes to the attention of the
Company about the following events:
• Significant financial difficulty of the issuer or debtor;
• A breach of contract, such as a default or delinquency in payments;
• It is becoming probable that the issuer or debtor will enter bankruptcy or other financial
reorganisation;
• The disappearance of an active market for that financial asset because of financial difficulties; or
• Observable data indicating that there is a measurable decrease in the estimated future cash flow from
a group of financial assets since the initial recognition of those assets, including:
• adverse changes in the payment status of issuers or debtors; or
• national or local economic conditions that correlate with defaults on the assets.
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 impairment. 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.
As regards Available-for-sale financial assets, if there is objective evidence that impairment has been
incurred, the amount that has to be recognized as an impairment loss is the difference between the
acquisition cost and the current fair value, less any impairment loss previously recognised in the income
statement. The impairment loss is transferred from other comprehensive income, where it has been
previously recognised, to the income statement. Objective evidence of impairment is, either a significant
in terms of fair value, or prolonged in terms of period, decline in the fair value of the financial asset. A
decline is considered significant when the difference of the fair value and the cost of the financial asset
reach 20.0% and irrespective of percentage difference is considered prolonged if the fair value is below
its costs for a period of 6 months. Any subsequent reversals of impairment losses with respect to equity
instruments cannot be recognized in profit or loss but have to be reflected as an increase directly in
other comprehensive income.
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.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
26 of 56
