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aia.gr Annual Report 2016
loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated. Objective evidence that a financial asset or group of assets is
impaired includes observable data that comes to the attention of the Company about the following events:
• Significant financial difficulty of the issuer or debtor;
• A breach of contract, such as a default or delinquency in payments;
• It is becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation;
• The disappearance of an active market for that financial asset because of financial difficulties; or
• Observable data indicating that there is a measurable decrease in the estimated future cash flow from a
group of financial assets since the initial recognition of those assets, including:
• adverse changes in the payment status of issuers or debtors; or
• national or local economic conditions that correlate with defaults on the assets.
If there is objective evidence that an impairment loss has been incurred on trade receivables or held-
to-maturity investments carried at amortised cost, the amount of the loss is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows (excluding future
credit losses that have been incurred) discounted at the financial asset’s original effective interest rate. The
carrying amount of the asset is reduced through the use of an allowance account, and the amount of the
loss is recognised in the income statement under provision for impairment. If in a subsequent period, the
amount of the impairment loss decreases and the decrease can be related objectively to an event occurring
after the impairment was recognised (such as improved credit rating), the previously recognised impairment
loss is reversed by adjusting the allowance account. The amount of the reversal is recognised in the income
statement.
As regards Available-for-sale financial assets, if there is objective evidence that impairment has been incurred,
the amount that has to be recognized as an impairment loss is the difference between the acquisition cost
and the current fair value, less any impairment loss previously recognised in the income statement. The
impairment loss is transferred from other comprehensive income, where it has been previously recognised,
to the income statement. Objective evidence of impairment is, either a significant in terms of fair value, or
prolonged in terms of period, decline in the fair value of the financial asset. A decline is considered significant
when the difference of the fair value and the cost of the financial asset reach 20.0% and irrespective of
percentage difference is considered prolonged if the fair value is below its costs for a period of 6 months. Any
subsequent reversals of impairment losses with respect to equity instruments cannot be recognized in profit
or loss but have to be reflected as an increase directly in other comprehensive income.
2.7 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using
the weighted average method. Net realisable value is the estimated selling price in the ordinary course of
business, less applicable variable selling expenses.
2.8 Trade receivables
Trade receivables are amounts due from customers for aeronautical and other services performed in the
ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If
not, they are presented as non-current assets.
2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new ordinary
shares are shown in equity as a reduction, net of tax, from the proceeds.
2.11 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year
or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value
and subsequently measured at amortised cost using the effective interest method.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
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loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of
financial assets that can be reliably estimated. Objective evidence that a financial asset or group of assets is
impaired includes observable data that comes to the attention of the Company about the following events:
• Significant financial difficulty of the issuer or debtor;
• A breach of contract, such as a default or delinquency in payments;
• It is becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation;
• The disappearance of an active market for that financial asset because of financial difficulties; or
• Observable data indicating that there is a measurable decrease in the estimated future cash flow from a
group of financial assets since the initial recognition of those assets, including:
• adverse changes in the payment status of issuers or debtors; or
• national or local economic conditions that correlate with defaults on the assets.
If there is objective evidence that an impairment loss has been incurred on trade receivables or held-
to-maturity investments carried at amortised cost, the amount of the loss is measured as the difference
between the asset’s carrying amount and the present value of estimated future cash flows (excluding future
credit losses that have been incurred) discounted at the financial asset’s original effective interest rate. The
carrying amount of the asset is reduced through the use of an allowance account, and the amount of the
loss is recognised in the income statement under provision for impairment. If in a subsequent period, the
amount of the impairment loss decreases and the decrease can be related objectively to an event occurring
after the impairment was recognised (such as improved credit rating), the previously recognised impairment
loss is reversed by adjusting the allowance account. The amount of the reversal is recognised in the income
statement.
As regards Available-for-sale financial assets, if there is objective evidence that impairment has been incurred,
the amount that has to be recognized as an impairment loss is the difference between the acquisition cost
and the current fair value, less any impairment loss previously recognised in the income statement. The
impairment loss is transferred from other comprehensive income, where it has been previously recognised,
to the income statement. Objective evidence of impairment is, either a significant in terms of fair value, or
prolonged in terms of period, decline in the fair value of the financial asset. A decline is considered significant
when the difference of the fair value and the cost of the financial asset reach 20.0% and irrespective of
percentage difference is considered prolonged if the fair value is below its costs for a period of 6 months. Any
subsequent reversals of impairment losses with respect to equity instruments cannot be recognized in profit
or loss but have to be reflected as an increase directly in other comprehensive income.
2.7 Inventories
Inventories are stated at the lower of cost and net realisable value. Cost is determined using
the weighted average method. Net realisable value is the estimated selling price in the ordinary course of
business, less applicable variable selling expenses.
2.8 Trade receivables
Trade receivables are amounts due from customers for aeronautical and other services performed in the
ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If
not, they are presented as non-current assets.
2.9 Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less.
2.10 Share capital
Ordinary shares are classified as equity. Incremental costs associated directly with the issue of new ordinary
shares are shown in equity as a reduction, net of tax, from the proceeds.
2.11 Trade payables
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of
business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year
or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at fair value
and subsequently measured at amortised cost using the effective interest method.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
28 of 57
