Page 79 - Annual Report 2015 EN
P. 79
Annual Report 2015
4.1.1 Taxes
The internal control procedures for the related tax risks are part of Company’s control system. The
general tax risk for the Company concerns the timely submission of complete tax returns, the payment
of the tax amounts concerned as well as compliance with all tax laws and regulations and reporting rules
specifically relating to corporate income tax.
The Company is subject to income tax, VAT and other taxes in Greece. Significant judgment is
sometimes required in determining the Company’s tax position for such taxes in certain instances due
to the particular tax regime, under the Airport Development Agreement, applicable to the Company’s
operations, which is subject to challenge by the tax authorities on the grounds of ambiguity or different
interpretation with tax laws. The Company recognises liabilities for anticipated tax audit issues based
on estimates of whether additional taxes will arise or tax losses reduced. Where that final tax outcome
of these matters is different from the amounts that were initially recorded, such differences will
impact the current tax, deferred tax and other tax assets and liabilities in the period during which such
determination is made.
4.1.2 Provision for restoration cost
Provision for restoration cost includes future expenses for the major overhauls of roads, runways,
taxiways and replacement of airfield lighting and baggage handling equipment. Significant estimates
are required to determine the level of provision such as the timing of the expenditure, the extension
of the works and the amount that it will be expensed in the future. The nominal value of the provision
for restoration cost is annually determined by a qualified department within the Company based on
international experience and the specific conditions relating to the operations of the airport. The amount
of the provision is discounted at balance sheet date by using the risk free rate for similar time duration.
4.2 Critical judgments in applying the entity’s accounting policies
There were no critical judgments necessary in applying the Company’s accounting policies.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
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4.1.1 Taxes
The internal control procedures for the related tax risks are part of Company’s control system. The
general tax risk for the Company concerns the timely submission of complete tax returns, the payment
of the tax amounts concerned as well as compliance with all tax laws and regulations and reporting rules
specifically relating to corporate income tax.
The Company is subject to income tax, VAT and other taxes in Greece. Significant judgment is
sometimes required in determining the Company’s tax position for such taxes in certain instances due
to the particular tax regime, under the Airport Development Agreement, applicable to the Company’s
operations, which is subject to challenge by the tax authorities on the grounds of ambiguity or different
interpretation with tax laws. The Company recognises liabilities for anticipated tax audit issues based
on estimates of whether additional taxes will arise or tax losses reduced. Where that final tax outcome
of these matters is different from the amounts that were initially recorded, such differences will
impact the current tax, deferred tax and other tax assets and liabilities in the period during which such
determination is made.
4.1.2 Provision for restoration cost
Provision for restoration cost includes future expenses for the major overhauls of roads, runways,
taxiways and replacement of airfield lighting and baggage handling equipment. Significant estimates
are required to determine the level of provision such as the timing of the expenditure, the extension
of the works and the amount that it will be expensed in the future. The nominal value of the provision
for restoration cost is annually determined by a qualified department within the Company based on
international experience and the specific conditions relating to the operations of the airport. The amount
of the provision is discounted at balance sheet date by using the risk free rate for similar time duration.
4.2 Critical judgments in applying the entity’s accounting policies
There were no critical judgments necessary in applying the Company’s accounting policies.
Financial Statements as at 31 December 2015 (Amounts in Euros unless otherwise stated)
36 of 56
