Page 76 - Annual_Report_2016
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Financial Statements aia.gr
2.12 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and
the redemption value is recognised in the income statement over the period of the borrowings using the
effective interest method.
Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a
qualifying asset.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the balance sheet date.
2.13 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received and the Company will comply with all attached conditions.
Government grants relating to borrowing and other related costs are recognised in the income statement to
match them with the costs that they are intended to compensate.
Government grants relating to non-current assets are off-set against the cost of the relevant non-current
asset. The grant is recognised as income over the life of the respective depreciable non-current asset by way
of a reduction in the depreciation/amortisation charge.
2.14 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income
statement, except to the extent that it relates to items recognised in other comprehensive income or
directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated on the basis of Greek tax laws enacted or substantively enacted
at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulations is subject to interpretation and establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax base of assets and liabilities and their carrying amounts in the Company’s financial statements.
However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit and loss. Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the balance sheet date and are expected to apply when the
related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to
income taxes levied by the same taxation authority on either the taxable entity or different taxable entities
where there is an intention to settle the balances on a net basis.
2.15 Employee benefits
2.15.1 Pension obligations
The Company has both defined benefit and defined contribution plans. A defined contribution plan is a
pension plan under which the Company pays fixed contributions into a separate entity. The Company has no
legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
29 of 57
2.12 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are
subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and
the redemption value is recognised in the income statement over the period of the borrowings using the
effective interest method.
Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a
qualifying asset.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer
settlement of the liability for at least 12 months after the balance sheet date.
2.13 Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the
grant will be received and the Company will comply with all attached conditions.
Government grants relating to borrowing and other related costs are recognised in the income statement to
match them with the costs that they are intended to compensate.
Government grants relating to non-current assets are off-set against the cost of the relevant non-current
asset. The grant is recognised as income over the life of the respective depreciable non-current asset by way
of a reduction in the depreciation/amortisation charge.
2.14 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the income
statement, except to the extent that it relates to items recognised in other comprehensive income or
directly in equity. In this case the tax is also recognised in other comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated on the basis of Greek tax laws enacted or substantively enacted
at the balance sheet date. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulations is subject to interpretation and establishes provisions where
appropriate on the basis of amounts expected to be paid to the tax authorities.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between
the tax base of assets and liabilities and their carrying amounts in the Company’s financial statements.
However, the deferred income tax is not accounted for if it arises from initial recognition of an asset or
liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit and loss. Deferred income tax is determined using tax rates (and laws) that
have been enacted or substantially enacted by the balance sheet date and are expected to apply when the
related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised to the extent that it is probable that future taxable profit will be
available against which the temporary differences can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to
income taxes levied by the same taxation authority on either the taxable entity or different taxable entities
where there is an intention to settle the balances on a net basis.
2.15 Employee benefits
2.15.1 Pension obligations
The Company has both defined benefit and defined contribution plans. A defined contribution plan is a
pension plan under which the Company pays fixed contributions into a separate entity. The Company has no
legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
29 of 57
