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aia.gr Annual Report 2016
all employees the benefits relating to employee service in the current and prior periods. A defined benefit
plan is a pension plan that typically defines an amount of pension benefits that an employee will receive on
retirement, usually dependent on one or more factors such as age, years of service and compensation.
The Company’s obligations to pay employee retirement benefits under Law 2112/1920 are considered and
accounted for as defined benefit plans.
The liability recognised in the statement of financial position in respect of defined benefit pension plans is
the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets,
together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined
benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The
present value of the defined benefit obligation is determined by discounting the estimated future cash outflows
using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits
will be paid and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in income statement.
For defined contribution plans, the Company pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment
obligations once the contributions have been paid. The contributions are recognised as employee benefit
expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available.
2.15.2 Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits.
The Company recognises termination benefits when it is demonstrably committed to either: terminating
the employment of current employees according to a detailed formal plan without possibility of withdrawal;
or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits
falling due more than 12 months after the balance sheet date are discounted to present value.
2.15.3 Bonus plans
The Company recognises a liability and an expense for bonuses based on achievement of predefined
financial and operational targets. The Company recognises a provision where contractually obliged or where
there is a past practice that has created a constructive obligation.
2.16 Provisions
Provisions are recognised when: The Company has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated. Provisions include the obligations under the Service Concession
Arrangement to maintain the serviceability of major infrastructure components, such as runways, taxiways,
aprons, etc. which require major overhauls at regular intervals during the concession period. Provisions are
not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest
expense.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
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all employees the benefits relating to employee service in the current and prior periods. A defined benefit
plan is a pension plan that typically defines an amount of pension benefits that an employee will receive on
retirement, usually dependent on one or more factors such as age, years of service and compensation.
The Company’s obligations to pay employee retirement benefits under Law 2112/1920 are considered and
accounted for as defined benefit plans.
The liability recognised in the statement of financial position in respect of defined benefit pension plans is
the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets,
together with adjustments for unrecognised actuarial gains or losses and past service costs. The defined
benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The
present value of the defined benefit obligation is determined by discounting the estimated future cash outflows
using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits
will be paid and that have terms to maturity approximating to the terms of the related pension liability.
Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to equity in other comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in income statement.
For defined contribution plans, the Company pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual or voluntary basis. The Company has no further payment
obligations once the contributions have been paid. The contributions are recognised as employee benefit
expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund
or a reduction in the future payments is available.
2.15.2 Termination benefits
Termination benefits are payable when employment is terminated by the Company before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits.
The Company recognises termination benefits when it is demonstrably committed to either: terminating
the employment of current employees according to a detailed formal plan without possibility of withdrawal;
or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits
falling due more than 12 months after the balance sheet date are discounted to present value.
2.15.3 Bonus plans
The Company recognises a liability and an expense for bonuses based on achievement of predefined
financial and operational targets. The Company recognises a provision where contractually obliged or where
there is a past practice that has created a constructive obligation.
2.16 Provisions
Provisions are recognised when: The Company has a present legal or constructive obligation as a result
of past events; it is probable that an outflow of resources will be required to settle the obligation; and
the amount has been reliably estimated. Provisions include the obligations under the Service Concession
Arrangement to maintain the serviceability of major infrastructure components, such as runways, taxiways,
aprons, etc. which require major overhauls at regular intervals during the concession period. Provisions are
not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement
is determined by considering the class of obligations as a whole. A provision is recognised even if the
likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest
expense.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
30 of 57
