Page 72 - Annual_Report_2016
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Financial Statements aia.gr
2.2 Foreign currency translation
2.2.1 Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which the Company operates (‘the functional currency’). The Company’s financial
statements are presented in EURO (€), which is the Company’s functional and presentation currency.
2.2.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the income statement.
2.3 Property, plant and equipment
Property, plant and equipment mainly comprise movable assets, such as vehicles and furniture & fixtures
which do not form part of the service concession intangible asset.
The items included under the heading “Property, plant & equipment” in the accompanying statement of
financial position are stated at historical cost less accumulated depreciation and impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the income statement during the financial
period in which they are incurred.
Depreciation is calculated using the straight-line method to allocate the cost of the various categories of
property, plant and equipment to their residual values over their estimated useful lives, as follows:
Mechanical Equipment 10 years
Vehicles 6-10 years
Fixtures & Equipment
Hardware 10 years
5 years
Land, buildings, installations, fencing, aircraft ground power system, runways, taxiways, aircraft bridges and
aprons held under the Service Concession Arrangement constitutes the total infrastructure that has been
recognised as an intangible asset (refer to accounting policy 2.4).
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are
recognised within other (losses)/gains – net, in the income statement.
2.4 Intangible assets
2.4.1 Service concession arrangement
The Service Concession Arrangement refers to the Airport Development Agreement (“ADA”) which
governs the right that has been granted by the Greek State to the Company for the purpose of the finance,
construction, operation and development of the Athens International Airport. The above right has a finite
useful life of approximately 25 years which is equal to the duration of the concession arrangement following
the completion of the construction phase.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
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2.2 Foreign currency translation
2.2.1 Functional and presentation currency
Items included in the financial statements of the Company are measured using the currency of the primary
economic environment in which the Company operates (‘the functional currency’). The Company’s financial
statements are presented in EURO (€), which is the Company’s functional and presentation currency.
2.2.2 Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting
from the settlement of such transactions and from the translation at year-end exchange rates of monetary
assets and liabilities denominated in foreign currencies are recognised in the income statement.
2.3 Property, plant and equipment
Property, plant and equipment mainly comprise movable assets, such as vehicles and furniture & fixtures
which do not form part of the service concession intangible asset.
The items included under the heading “Property, plant & equipment” in the accompanying statement of
financial position are stated at historical cost less accumulated depreciation and impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is
derecognised. All other repairs and maintenance are charged to the income statement during the financial
period in which they are incurred.
Depreciation is calculated using the straight-line method to allocate the cost of the various categories of
property, plant and equipment to their residual values over their estimated useful lives, as follows:
Mechanical Equipment 10 years
Vehicles 6-10 years
Fixtures & Equipment
Hardware 10 years
5 years
Land, buildings, installations, fencing, aircraft ground power system, runways, taxiways, aircraft bridges and
aprons held under the Service Concession Arrangement constitutes the total infrastructure that has been
recognised as an intangible asset (refer to accounting policy 2.4).
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are
recognised within other (losses)/gains – net, in the income statement.
2.4 Intangible assets
2.4.1 Service concession arrangement
The Service Concession Arrangement refers to the Airport Development Agreement (“ADA”) which
governs the right that has been granted by the Greek State to the Company for the purpose of the finance,
construction, operation and development of the Athens International Airport. The above right has a finite
useful life of approximately 25 years which is equal to the duration of the concession arrangement following
the completion of the construction phase.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
25 of 57
