Page 70 - Annual Report 2015 EN
P. 70
Financial Statements
2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new
ordinary shares are shown in equity as a reduction, net of tax, from the proceeds.
2.11 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. Accounts payable are classified as current liabilities if payment is
due within one year or less. If not, they are presented as non-current liabilities. Trade payables are
recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.
2.12 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs)
and the redemption value is recognised in the income statement over the period of the borrowings
using the effective interest method.
Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a
qualifying asset.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the balance sheet date.
2.13 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance
that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to borrowing and other related costs are recognised in the income
statement to match them with the costs that they are intended to compensate.
Government grants relating to non-current assets are off-set against the cost of the relevant non-
current 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.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
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2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term
highly liquid investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new
ordinary shares are shown in equity as a reduction, net of tax, from the proceeds.
2.11 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. Accounts payable are classified as current liabilities if payment is
due within one year or less. If not, they are presented as non-current liabilities. Trade payables are
recognised initially at fair value and subsequently measured at amortised cost using the effective
interest method.
2.12 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs)
and the redemption value is recognised in the income statement over the period of the borrowings
using the effective interest method.
Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a
qualifying asset.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the balance sheet date.
2.13 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance
that the grant will be received and the Company will comply with all attached conditions.
Government grants relating to borrowing and other related costs are recognised in the income
statement to match them with the costs that they are intended to compensate.
Government grants relating to non-current assets are off-set against the cost of the relevant non-
current 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.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
27 of 56
