Page 68 - Annual_Report_2016
P. 68
Financial Statements aia.gr
The number of open-ended staff employed at year-end was 604 employees, compared to 620 employees at
the end of 2015.
The financial statements had been originally approved by the Board of Directors on 30 March 2017 and
following the revision of the proposed dividend are re-approved on 9 June 2017.
2. Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have consistently been applied to all the years presented.
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union, IFRIC Interpretations and the Law 4308/2013 as
applicable to companies reporting under IFRS. The Company’s financial statements have been prepared
under the historical cost convention, with the exception that the Available-for-sale financial assets are
measured at fair value.
2.1.1 Going concern
As a result of the funding activities undertaken and the increased focus on working capital, the Company’s
forecasts and projections, taking account of reasonably possible changes in trading performance, show
that the Company should be able to operate within the level of its current financing. Currently net interest
expenses are covered by operating profits more than 5 times.
After making enquiries, management has reasonable expectations that the Company has adequate resources
to continue in operational existence for the foreseeable future. The Company therefore continues to adopt
the going concern basis in preparing its financial statements.
2.1.2 Changes in accounting policies and disclosures
New standards, amendments to standards and interpretations: Certain new standards, amendments
to standards and interpretations have been issued that are mandatory for periods beginning during the
current financial year and subsequent years. The Company’s evaluation of the effect of these new standards,
amendments to standards and interpretations is as follows:
Standards and Interpretations effective for the current financial year
IAS 19R (Amendment) “Employee Benefits”
These narrow scope amendments apply to contributions from employees or third parties to defined benefit
plans and simplify the accounting for contributions that are independent of the number of years of employee
service, for example, employee contributions that are calculated according to a fixed percentage of salary.
IFRS 11 (Amendment) “Joint Arrangements”
This amendment requires an investor to apply the principles of business combination accounting when it
acquires an interest in a joint operation that constitutes a ‘business’.
IAS 16 and IAS 38 (Amendments) “Clarification of Acceptable Methods of Depreciation and Amortisation”
This amendment clarifies that the use of revenue-based methods to calculate the depreciation of an asset
is not appropriate and it also clarifies that revenue is generally presumed to be an inappropriate basis for
measuring the consumption of the economic benefits embodied in an intangible asset.
IAS 16 and IAS 41 (Amendments) “Agriculture: Bearer plants”
These amendments change the financial reporting for bearer plants, such as grape vines and fruit trees.
The bearer plants should be accounted for in the same way as self-constructed items of property, plant and
equipment. Consequently, the amendments include them within the scope of IAS 16, instead of IAS 41. The
produce growing on bearer plants will remain within the scope of IAS 41.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
21 of 57
The number of open-ended staff employed at year-end was 604 employees, compared to 620 employees at
the end of 2015.
The financial statements had been originally approved by the Board of Directors on 30 March 2017 and
following the revision of the proposed dividend are re-approved on 9 June 2017.
2. Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below.
These policies have consistently been applied to all the years presented.
2.1 Basis of preparation
The financial statements of the Company have been prepared in accordance with International Financial
Reporting Standards as adopted by the European Union, IFRIC Interpretations and the Law 4308/2013 as
applicable to companies reporting under IFRS. The Company’s financial statements have been prepared
under the historical cost convention, with the exception that the Available-for-sale financial assets are
measured at fair value.
2.1.1 Going concern
As a result of the funding activities undertaken and the increased focus on working capital, the Company’s
forecasts and projections, taking account of reasonably possible changes in trading performance, show
that the Company should be able to operate within the level of its current financing. Currently net interest
expenses are covered by operating profits more than 5 times.
After making enquiries, management has reasonable expectations that the Company has adequate resources
to continue in operational existence for the foreseeable future. The Company therefore continues to adopt
the going concern basis in preparing its financial statements.
2.1.2 Changes in accounting policies and disclosures
New standards, amendments to standards and interpretations: Certain new standards, amendments
to standards and interpretations have been issued that are mandatory for periods beginning during the
current financial year and subsequent years. The Company’s evaluation of the effect of these new standards,
amendments to standards and interpretations is as follows:
Standards and Interpretations effective for the current financial year
IAS 19R (Amendment) “Employee Benefits”
These narrow scope amendments apply to contributions from employees or third parties to defined benefit
plans and simplify the accounting for contributions that are independent of the number of years of employee
service, for example, employee contributions that are calculated according to a fixed percentage of salary.
IFRS 11 (Amendment) “Joint Arrangements”
This amendment requires an investor to apply the principles of business combination accounting when it
acquires an interest in a joint operation that constitutes a ‘business’.
IAS 16 and IAS 38 (Amendments) “Clarification of Acceptable Methods of Depreciation and Amortisation”
This amendment clarifies that the use of revenue-based methods to calculate the depreciation of an asset
is not appropriate and it also clarifies that revenue is generally presumed to be an inappropriate basis for
measuring the consumption of the economic benefits embodied in an intangible asset.
IAS 16 and IAS 41 (Amendments) “Agriculture: Bearer plants”
These amendments change the financial reporting for bearer plants, such as grape vines and fruit trees.
The bearer plants should be accounted for in the same way as self-constructed items of property, plant and
equipment. Consequently, the amendments include them within the scope of IAS 16, instead of IAS 41. The
produce growing on bearer plants will remain within the scope of IAS 41.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
21 of 57
