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Financial Statements aia.gr
value in use. If the recoverable amount is lower than the carrying amount, the difference is recognised as
an impairment loss in the income statement and the carrying amount of the asset is reduced by the same
amount. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that
suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
2.6 Financial assets
2.6.1 Classification
The Company classifies its financial assets depending on the purpose for which the financial assets were
acquired. Management determines the classification of its financial assets at initial recognition.
The Company has three classes of financial assets comprising held-to-maturity investments, loans and
receivables and Available-for-sale financial assets. It does not hold any financial assets at fair value through
profit and loss.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They are included in current assets, except for maturities greater than 12 months
after the end of the reporting date, which are classified as non-current assets. The Company’s loans and
receivables recognised in the statement of financial position comprise “Trade and other receivables” and
“Cash and cash equivalents”. Refer to notes 2.8 and 2.9 respectively.
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and
fixed maturities that company’s management has the positive intention and ability to hold to maturity, other
than:
• those that the Company upon initial recognition designates at fair value through profit or loss
• those that the Company designates as Available-for-sale
• those that meet the definition of loans and receivables
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category
or not classified in any of the other categories. They are included in non-current assets unless the investment
matures or management intends to dispose of it within 12 months of the end of the reporting period.
2.6.2 Recognition and measurement
Regular-way purchases and sales of financial assets are recognised on trade date – the date on which the
Company commits to purchase or sell the asset.
Loans and receivables are initially recognised at fair value and are subsequently measured at amortised cost
using the effective interest rate method.
Held-to-maturity financial assets are initially recognised at amortised cost and are subsequently measured at
amortised cost using the effective interest rate method.
Financial assets are derecognised only when the contractual rights to the cash flows from the financial asset
expire or the Company transfers substantially all risks and rewards of ownership.
Available-for-sale financial assets are upon initial measurement recognized at fair value including any
transaction cost that has been incurred upon acquisition. Subsequent to initial recognition Available-for-
sale financial assets are measured at fair value. All gains and losses arising from changes in fair value are
recognized directly in other comprehensive income, except with respect to impairment losses that are
recognized in profit or loss.
2.6.3 Impairment
The Company assesses at each end of the reporting period whether there is objective evidence that a financial
asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and
impairment losses are incurred only if there is objective evidence of impairment as a result of one or more
events that have occurred after the initial recognition of the asset (a probable ‘loss event’) and that probable
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
27 of 57
value in use. If the recoverable amount is lower than the carrying amount, the difference is recognised as
an impairment loss in the income statement and the carrying amount of the asset is reduced by the same
amount. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). Non-financial assets other than goodwill that
suffered impairment are reviewed for possible reversal of the impairment at each reporting date.
2.6 Financial assets
2.6.1 Classification
The Company classifies its financial assets depending on the purpose for which the financial assets were
acquired. Management determines the classification of its financial assets at initial recognition.
The Company has three classes of financial assets comprising held-to-maturity investments, loans and
receivables and Available-for-sale financial assets. It does not hold any financial assets at fair value through
profit and loss.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market. They are included in current assets, except for maturities greater than 12 months
after the end of the reporting date, which are classified as non-current assets. The Company’s loans and
receivables recognised in the statement of financial position comprise “Trade and other receivables” and
“Cash and cash equivalents”. Refer to notes 2.8 and 2.9 respectively.
Held-to-maturity financial assets are non-derivative financial assets with fixed or determinable payments and
fixed maturities that company’s management has the positive intention and ability to hold to maturity, other
than:
• those that the Company upon initial recognition designates at fair value through profit or loss
• those that the Company designates as Available-for-sale
• those that meet the definition of loans and receivables
Available-for-sale financial assets are non-derivative financial assets that are either designated in this category
or not classified in any of the other categories. They are included in non-current assets unless the investment
matures or management intends to dispose of it within 12 months of the end of the reporting period.
2.6.2 Recognition and measurement
Regular-way purchases and sales of financial assets are recognised on trade date – the date on which the
Company commits to purchase or sell the asset.
Loans and receivables are initially recognised at fair value and are subsequently measured at amortised cost
using the effective interest rate method.
Held-to-maturity financial assets are initially recognised at amortised cost and are subsequently measured at
amortised cost using the effective interest rate method.
Financial assets are derecognised only when the contractual rights to the cash flows from the financial asset
expire or the Company transfers substantially all risks and rewards of ownership.
Available-for-sale financial assets are upon initial measurement recognized at fair value including any
transaction cost that has been incurred upon acquisition. Subsequent to initial recognition Available-for-
sale financial assets are measured at fair value. All gains and losses arising from changes in fair value are
recognized directly in other comprehensive income, except with respect to impairment losses that are
recognized in profit or loss.
2.6.3 Impairment
The Company assesses at each end of the reporting period whether there is objective evidence that a financial
asset or group of financial assets is impaired. A financial asset or group of financial assets is impaired and
impairment losses are incurred only if there is objective evidence of impairment as a result of one or more
events that have occurred after the initial recognition of the asset (a probable ‘loss event’) and that probable
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
27 of 57
