Page 73 - Annual Report 2015 EN
P. 73
Annual Report 2015
Concession revenues are recognised in the income statement on a monthly basis, while the
settlement of the annual concession fees is finally recognised by the Company in the income
statement, at year-end.
2.17.2 Building space rentals and services
The Company rents properties held under the concession and located within the airport premises
under operating leases. Revenue from such leases is recognised in the income statement on a straight
line basis over the lease term.
2.17.3 Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are
recognized in the income statement when the service is concluded. The criterion for the recognition
of revenue related to parking charges is the vehicle’s departure. Each arrival of a vehicle and its
subsequent departure is considered as a cycle of movement where all services have been rendered.
2.17.4 Interest income
Interest income is recognised on a time-proportion basis using the effective interest method. When
a receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being
the estimated future cash flow discounted at the original effective interest rate of the instrument,
and continues unwinding the discount as interest income. Interest income on impaired loans and
receivables is recognised using the original effective interest rate.
2.17.5 Dividend income
Dividend income is recognised when the right to receive payment is established.
2.18 Offsetting nancial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial
position when there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the company or the
counterparty.
2.19 Leases
Leases under which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Payments made by the Company under operating leases (net
of any incentives received from the lessor) are charged to the income statement on a straight-line
basis over the period of the lease.
The Company does not lease any material property, plant or equipment under finance leases under
which it substantially retains all the risks and rewards of ownership.
2.20 Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s
financial statements in the period in which the dividends are approved by the Company’s
shareholders.
2.21 Fair value estimation and hierarchy
Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
• Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly.
• Level 3: techniques which use inputs which have a significant effect on the recorded fair value that
are not based on observable market data.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
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Concession revenues are recognised in the income statement on a monthly basis, while the
settlement of the annual concession fees is finally recognised by the Company in the income
statement, at year-end.
2.17.2 Building space rentals and services
The Company rents properties held under the concession and located within the airport premises
under operating leases. Revenue from such leases is recognised in the income statement on a straight
line basis over the lease term.
2.17.3 Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are
recognized in the income statement when the service is concluded. The criterion for the recognition
of revenue related to parking charges is the vehicle’s departure. Each arrival of a vehicle and its
subsequent departure is considered as a cycle of movement where all services have been rendered.
2.17.4 Interest income
Interest income is recognised on a time-proportion basis using the effective interest method. When
a receivable is impaired, the Company reduces the carrying amount to its recoverable amount, being
the estimated future cash flow discounted at the original effective interest rate of the instrument,
and continues unwinding the discount as interest income. Interest income on impaired loans and
receivables is recognised using the original effective interest rate.
2.17.5 Dividend income
Dividend income is recognised when the right to receive payment is established.
2.18 Offsetting nancial instruments
Financial assets and liabilities are offset and the net amount reported in the statement of financial
position when there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The legally
enforceable right must not be contingent on future events and must be enforceable in the normal
course of business and in the event of default, insolvency or bankruptcy of the company or the
counterparty.
2.19 Leases
Leases under which a significant portion of the risks and rewards of ownership are retained by the
lessor are classified as operating leases. Payments made by the Company under operating leases (net
of any incentives received from the lessor) are charged to the income statement on a straight-line
basis over the period of the lease.
The Company does not lease any material property, plant or equipment under finance leases under
which it substantially retains all the risks and rewards of ownership.
2.20 Dividend distribution
Dividend distribution to the Company’s shareholders is recognised as a liability in the Company’s
financial statements in the period in which the dividends are approved by the Company’s
shareholders.
2.21 Fair value estimation and hierarchy
Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
• Level 2: other techniques for which all inputs which have a significant effect on the recorded fair
value are observable, either directly or indirectly.
• Level 3: techniques which use inputs which have a significant effect on the recorded fair value that
are not based on observable market data.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
30 of 56
