Page 73 - Annual_Report_2016
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aia.gr Annual Report 2016
The Service Concession Arrangement has been accounted under the intangible asset model since the
Company, as operator, is paid by the users and the concession grantor has not provided any contractual
guarantees with respect to the recoverability of the investment. The intangible asset corresponds to the right
granted by the concession grantor to the Company to charge users of the airport services.
The Service Concession Arrangement consists of the fair value of acquiring the service concession which
principally includes the cost of the usufruct and the costs incurred to construct the infrastructure (net of
government grants received) as well as the present value of the fixed determined future obligations for the
grant of rights fee payable to the Greek State as set out in the ADA.
Amortisation is calculated using the straight-line method to allocate the cost of the right over the duration of
the Service Concession Arrangement which is approximately 25 years.
Any subsequent costs incurred in maintaining the serviceability of the infrastructure is expensed as incurred
unless such cost relate to major upgrades which increase the income generating ability of the infrastructure.
These costs are capitalised as part of the service concession intangible asset and are amortised on a straight-
line basis over the remaining period of the Service Concession Arrangement.
2.4.2 Grant of Rights Fee, variable fee component
As set out in the ADA and in respect to the period after the twentieth anniversary of the Agreement
Commencement Date and until the end of the Concession Period, the Company shall pay to the Greek State
per quarter the higher of: (a) a fixed amount of €3,750,000 and (b) 25.0% of 15.0% of the Consolidated
Operating Profits for the Financial Year of the Company ending immediately prior to such Quarter.
Consolidated Operating Profit is specifically defined in the ADA as:
a) the operating profit of the Company and its Subsidiaries (before interest, extraordinary and exceptional
items, taxation calculated on profits or distributions and similar charges), all as determined on a
consolidated basis and excluding amounts attributable to minority interests in Subsidiaries, in respect of a
Financial Year as shown by the Audited Accounts in respect of that Financial Year,
b) less interest paid during that Financial Year (other than any interest paid on or as a result of a prepayment
or acceleration of all or part of the relevant indebtedness) in respect of indebtedness for borrowed money
incurred in respect of the provision, acquisition, construction, maintenance, repair, renewal and operation
of the assets allocated to Air Activities.
The accounting for the Service Concession Arrangement continues as determined in 2.4.1, with the exception
that the variable element of the Grant of Rights Fee is expensed to the income statement in the period in
which it relates.
2.4.3 Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to
use the specific software. These costs are depreciated over their estimated useful lives (5 years).
Costs associated with developing or maintaining computer software programmes are recognised as an
expense as incurred. Costs that are directly associated with the development of identifiable and unique
software products controlled by the Company, and that will probably generate economic benefits exceeding
costs beyond one year, are recognised as intangible assets. Costs include the employee costs incurred as a
result of developing software and an appropriate portion of relevant overheads.
Computer software development costs that recognised as assets are depreciated over their estimated useful
lives (5 years).
2.5 Impairment of non-financial assets
Assets, such as the service concession intangible asset, that are subject to amortisation are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
26 of 57
The Service Concession Arrangement has been accounted under the intangible asset model since the
Company, as operator, is paid by the users and the concession grantor has not provided any contractual
guarantees with respect to the recoverability of the investment. The intangible asset corresponds to the right
granted by the concession grantor to the Company to charge users of the airport services.
The Service Concession Arrangement consists of the fair value of acquiring the service concession which
principally includes the cost of the usufruct and the costs incurred to construct the infrastructure (net of
government grants received) as well as the present value of the fixed determined future obligations for the
grant of rights fee payable to the Greek State as set out in the ADA.
Amortisation is calculated using the straight-line method to allocate the cost of the right over the duration of
the Service Concession Arrangement which is approximately 25 years.
Any subsequent costs incurred in maintaining the serviceability of the infrastructure is expensed as incurred
unless such cost relate to major upgrades which increase the income generating ability of the infrastructure.
These costs are capitalised as part of the service concession intangible asset and are amortised on a straight-
line basis over the remaining period of the Service Concession Arrangement.
2.4.2 Grant of Rights Fee, variable fee component
As set out in the ADA and in respect to the period after the twentieth anniversary of the Agreement
Commencement Date and until the end of the Concession Period, the Company shall pay to the Greek State
per quarter the higher of: (a) a fixed amount of €3,750,000 and (b) 25.0% of 15.0% of the Consolidated
Operating Profits for the Financial Year of the Company ending immediately prior to such Quarter.
Consolidated Operating Profit is specifically defined in the ADA as:
a) the operating profit of the Company and its Subsidiaries (before interest, extraordinary and exceptional
items, taxation calculated on profits or distributions and similar charges), all as determined on a
consolidated basis and excluding amounts attributable to minority interests in Subsidiaries, in respect of a
Financial Year as shown by the Audited Accounts in respect of that Financial Year,
b) less interest paid during that Financial Year (other than any interest paid on or as a result of a prepayment
or acceleration of all or part of the relevant indebtedness) in respect of indebtedness for borrowed money
incurred in respect of the provision, acquisition, construction, maintenance, repair, renewal and operation
of the assets allocated to Air Activities.
The accounting for the Service Concession Arrangement continues as determined in 2.4.1, with the exception
that the variable element of the Grant of Rights Fee is expensed to the income statement in the period in
which it relates.
2.4.3 Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to
use the specific software. These costs are depreciated over their estimated useful lives (5 years).
Costs associated with developing or maintaining computer software programmes are recognised as an
expense as incurred. Costs that are directly associated with the development of identifiable and unique
software products controlled by the Company, and that will probably generate economic benefits exceeding
costs beyond one year, are recognised as intangible assets. Costs include the employee costs incurred as a
result of developing software and an appropriate portion of relevant overheads.
Computer software development costs that recognised as assets are depreciated over their estimated useful
lives (5 years).
2.5 Impairment of non-financial assets
Assets, such as the service concession intangible asset, that are subject to amortisation are reviewed for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
26 of 57
