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Financial Statements
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 balance sheet 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 in excess of the greater of 10% of the value of plan assets or 10% of the defined benefit obligation are
charged or credited to income over the employees’ expected average remaining working lives.
Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditional on the
employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are
amortised on a straight-line basis over the vesting period.
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.
b) 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.
c) 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 2010 (Amounts in Euros unless otherwise stated) Page 23 of 51
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 balance sheet 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 in excess of the greater of 10% of the value of plan assets or 10% of the defined benefit obligation are
charged or credited to income over the employees’ expected average remaining working lives.
Past-service costs are recognised immediately in income, unless the changes to the pension plan are conditional on the
employees remaining in service for a specified period of time (the vesting period). In this case, the past-service costs are
amortised on a straight-line basis over the vesting period.
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.
b) 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.
c) 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 2010 (Amounts in Euros unless otherwise stated) Page 23 of 51
