Page 71 - Annual Report 2015 EN
P. 71
Annual Report 2015
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will
be available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities
relate to income taxes levied by the same taxation authority on either the taxable entity or different
taxable entities where there is an intention to settle the balances on a net basis.
2.15 Employee bene ts
2.15.1 Pension obligations
The Company has both defined benefit and defined contribution plans. A defined contribution plan is a
pension plan under which the Company pays fixed contributions into a separate entity. The Company
has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the current and prior periods.
A defined benefit plan is a pension plan that typically defines an amount of pension benefits that an
employee will receive on retirement, usually dependent on one or more factors such as age, years of
service and compensation.
The Company’s obligations to pay employee retirement benefits under Law 2112/1920 are considered
and accounted for as defined benefit plans.
The liability recognised in the statement of financial position in respect of defined benefit pension
plans is the present value of the defined benefit obligation at the balance sheet date less the fair
value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past
service costs. The defined benefit obligation is calculated annually by independent actuaries using
the projected unit credit method. The present value of the defined benefit obligation is determined
by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds
that are denominated in the currency in which the benefits will be paid and that have terms to maturity
approximating to the terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in income statement.
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 bene ts
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
possibility 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;
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
28 of 56
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will
be available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities
relate to income taxes levied by the same taxation authority on either the taxable entity or different
taxable entities where there is an intention to settle the balances on a net basis.
2.15 Employee bene ts
2.15.1 Pension obligations
The Company has both defined benefit and defined contribution plans. A defined contribution plan is a
pension plan under which the Company pays fixed contributions into a separate entity. The Company
has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient
assets to pay all employees the benefits relating to employee service in the current and prior periods.
A defined benefit plan is a pension plan that typically defines an amount of pension benefits that an
employee will receive on retirement, usually dependent on one or more factors such as age, years of
service and compensation.
The Company’s obligations to pay employee retirement benefits under Law 2112/1920 are considered
and accounted for as defined benefit plans.
The liability recognised in the statement of financial position in respect of defined benefit pension
plans is the present value of the defined benefit obligation at the balance sheet date less the fair
value of plan assets, together with adjustments for unrecognised actuarial gains or losses and past
service costs. The defined benefit obligation is calculated annually by independent actuaries using
the projected unit credit method. The present value of the defined benefit obligation is determined
by discounting the estimated future cash outflows using interest rates of high-quality corporate bonds
that are denominated in the currency in which the benefits will be paid and that have terms to maturity
approximating to the terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in income statement.
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 bene ts
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
possibility 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;
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
28 of 56
