Page 72 - Annual Report 2015 EN
P. 72
Financial Statements
and the amount has been reliably estimated. Provisions include the obligations under the Service
Concession Arrangement to maintain the serviceability of major infrastructure components, such as
runways, taxiways, aprons, etc. which require major overhauls at regular intervals during the concession
period. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of obligations
may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to passage of time is recognised as
interest expense.
2.17 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax,
returns, rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of
the Company’s activities as described below. The amount of revenue is not considered to be reliably
measurable until all contingencies relating to the sale have been resolved. The Company bases its
estimates on historical results, taking into consideration the type of customer, the type of transaction
and the specifics of each arrangement.
2.17.1 Sales of services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing,
parking and servicing of aircrafts; the handling of passengers, baggage, cargo or mail on airport
premises; and the transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
“Non-Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and
supervision 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
rendered. 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
airport. 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 15.0% 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,
concerning the performance of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commercial
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.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
29 of 56
and the amount has been reliably estimated. Provisions include the obligations under the Service
Concession Arrangement to maintain the serviceability of major infrastructure components, such as
runways, taxiways, aprons, etc. which require major overhauls at regular intervals during the concession
period. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in
settlement is determined by considering the class of obligations as a whole. A provision is recognised
even if the likelihood of an outflow with respect to any one item included in the same class of obligations
may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to passage of time is recognised as
interest expense.
2.17 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax,
returns, rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable
that future economic benefits will flow to the entity and specific criteria have been met for each of
the Company’s activities as described below. The amount of revenue is not considered to be reliably
measurable until all contingencies relating to the sale have been resolved. The Company bases its
estimates on historical results, taking into consideration the type of customer, the type of transaction
and the specifics of each arrangement.
2.17.1 Sales of services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing,
parking and servicing of aircrafts; the handling of passengers, baggage, cargo or mail on airport
premises; and the transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
“Non-Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and
supervision 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
rendered. 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
airport. 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 15.0% 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,
concerning the performance of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commercial
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.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
29 of 56
