Page 78 - Annual_Report_2016
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Financial Statements aia.gr
2.17 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax, returns,
rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that
future economic benefits will flow to the entity and specific criteria have been met for each of the Company’s
activities as described below. The amount of revenue is not considered to be reliably measurable until all
contingencies relating to the sale have been resolved. The Company bases its estimates on historical results,
taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.
2.17.1 Sales of services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing, parking
and servicing of aircrafts; the handling of passengers, baggage, cargo or mail on airport premises; and the
transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
“Non-Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and supervision of
the following services, facilities and equipment: car parking, general retail shops, restaurants, bars and other
refreshment facilities, vehicle rental, porter service, hotels etc.
Airport charges
Revenues related to airport charges are recognised in the income statement when the services are rendered.
The criteria for the recognition of income related to airport charges is the aircraft’s take off. Each arrival of
an aircraft and its subsequent departure is considered as a cycle of movement/flight where all necessary
services have been rendered.
Article 14 of Law 2338/1995, the “Airport Development Agreement”, sets the rules for defining the charges
levied to the users of the airport with respect of the facilities and services provided at the airport. According
to the aforementioned article, the Company is entitled to determine at its discretion the level of airport
charges in order to achieve a maximum return of 15.0% per annum on the capital allocated to air activities.
Concession agreements
The Company’s business area has at the balance sheet date, a total of 53 concession contracts, concerning
the performance of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commercial
activity in a specific location designated by the Company. The concession rights are calculated according
to an agreed scale as a percentage of the sales generated by the concession holder subject to an annual
minimum guaranteed fee. A separate part of the concession contract is entered into for the space required
for warehouses, for which a fixed rent is payable.
Concession revenues are recognised in the income statement on a monthly basis, while the settlement of the
annual concession fees is finally recognised by the Company in the income statement, at year-end.
2.17.2 Building space rentals and services
The Company rents properties held under the concession and located within the airport premises under
operating leases. Revenue from such leases is recognised in the income statement on a straight line basis
over the lease term.
2.17.3 Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are
recognized in the income statement when the service is concluded. The criterion for the recognition of
revenue related to parking charges is the vehicle’s departure. Each arrival of a vehicle and its subsequent
departure is considered as a cycle of movement where all services have been rendered.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
31 of 57
2.17 Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and
services in the ordinary course of the Company’s activities. Revenue is shown net of value-added tax, returns,
rebates and discounts.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that
future economic benefits will flow to the entity and specific criteria have been met for each of the Company’s
activities as described below. The amount of revenue is not considered to be reliably measurable until all
contingencies relating to the sale have been resolved. The Company bases its estimates on historical results,
taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.
2.17.1 Sales of services
Revenue from the sale of services is derived from “air activities” and “non-air activities”.
“Air Activities” mean the provision of facilities, services and equipment for the purpose of landing, parking
and servicing of aircrafts; the handling of passengers, baggage, cargo or mail on airport premises; and the
transfer of passengers, baggage, cargo or mail to and from aircrafts and trains.
“Non-Air Activities” mean the provision, operation, maintenance, repair, renewal staffing and supervision of
the following services, facilities and equipment: car parking, general retail shops, restaurants, bars and other
refreshment facilities, vehicle rental, porter service, hotels etc.
Airport charges
Revenues related to airport charges are recognised in the income statement when the services are rendered.
The criteria for the recognition of income related to airport charges is the aircraft’s take off. Each arrival of
an aircraft and its subsequent departure is considered as a cycle of movement/flight where all necessary
services have been rendered.
Article 14 of Law 2338/1995, the “Airport Development Agreement”, sets the rules for defining the charges
levied to the users of the airport with respect of the facilities and services provided at the airport. According
to the aforementioned article, the Company is entitled to determine at its discretion the level of airport
charges in order to achieve a maximum return of 15.0% per annum on the capital allocated to air activities.
Concession agreements
The Company’s business area has at the balance sheet date, a total of 53 concession contracts, concerning
the performance of various commercial activities at the airport.
A concession involves granting of rights to a concession holder to operate and manage a commercial
activity in a specific location designated by the Company. The concession rights are calculated according
to an agreed scale as a percentage of the sales generated by the concession holder subject to an annual
minimum guaranteed fee. A separate part of the concession contract is entered into for the space required
for warehouses, for which a fixed rent is payable.
Concession revenues are recognised in the income statement on a monthly basis, while the settlement of the
annual concession fees is finally recognised by the Company in the income statement, at year-end.
2.17.2 Building space rentals and services
The Company rents properties held under the concession and located within the airport premises under
operating leases. Revenue from such leases is recognised in the income statement on a straight line basis
over the lease term.
2.17.3 Parking fees
Revenues related to parking services to vehicles used by passengers and visitors to reach airport are
recognized in the income statement when the service is concluded. The criterion for the recognition of
revenue related to parking charges is the vehicle’s departure. Each arrival of a vehicle and its subsequent
departure is considered as a cycle of movement where all services have been rendered.
Financial Statements as at 31 December 2016 (Amounts in Euros unless otherwise stated)
31 of 57
