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2.12 Borrowings
Borrowings are initially recognised at fair value, net of transaction costs. 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 that relate to assets that need a substantial period of time to get ready for use are capitalised.
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 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
a) 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 all employees the benefits
relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined
contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on
retirement, usually dependent on one or more factors such as age, years of service and compensation.
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 22 of 51
Borrowings are initially recognised at fair value, net of transaction costs. 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 that relate to assets that need a substantial period of time to get ready for use are capitalised.
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 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
a) 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 all employees the benefits
relating to employee service in the current and prior periods. A defined benefit plan is a pension plan that is not a defined
contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on
retirement, usually dependent on one or more factors such as age, years of service and compensation.
Financial Statements as at 31 December 2010 (Amounts in Euros unless otherwise stated) Page 22 of 51
