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Annual Financial Statements
i) Financial instruments valued at fair value through the income
statement
These comprise assets that satisfy any of the following conditions:
- Financial assets that are held for trading purposes (including deriva-
tives, except those that are designated and effective hedging instru-
ments, those that are acquired or incurred for the purpose of sale or
repurchase and, finally, those that are part of a portfolio of designated
financial instruments).
- Upon initial recognition it is designated by the company as an in-
strument valued at fair value, with any changes recognized through
the Income Statement.
In the Balance-sheet of the Group the exchanges and the assessment
at fair value of derivatives they are portrayed in separate items of Asset
and Liabilities with titled « Derivatives Financial Assets ». The changes
at fair value of derivatives are registered in income statement.
ii) Loans and receivables
They include non-derivative financial assets with fixed or predefined
payments which are not traded in active markets. The following are not
included in this category (loans and receivables):
a) Receivables from down payments for the purchase of goods or
services,
b) Receivables relating to tax transactions, which have been legisla-
tively imposed by the state,
c) Any receivable not covered by a contract which gives the company
the right to receive cash or other financial fixed assets.
Loans and receivables are included in current assets, except those
with a maturity date exceeding 12 months from the balance sheet
date. The latter are included in the non-current assets.
iii) Investments held to maturity
These include non-derivative financial assets with fixed or defined
payments and specific maturity and which the Group intends to hold
until their maturity.
The Group did not hold investments of this category.
iv) Financial assets available for sale
These include non-derivative financial assets that are either designat-
ed as such or cannot be included in any of the previous categories.
Financial assets available for sale are valued at fair value and the rel-
evant profit or loss is booked in Equity reserves until such assets are
sold or characterized as impaired.
During the sale, or when they are characterized as impaired, the profit
or loss is transferred to the results. Impairment losses that have been
booked to the results are not reversed through the results. The pur-
chases and sales of investments are recognized during the transac-
tion date, which is also the date the Group commits to purchase or sell
the item. Investments are initially recognized at fair value plus costs
directly related to the transaction. Costs directly related to the transac-
tion are not added for items valued at fair value through the income
statement. Investments are written-off when the right on cash flows
from investments mature or is transferred
and the Group has essentially transferred
all the risks and rewards implied by the
ownership.
The loans and receivables are recognized
in amortized cost using the effective inter-
est method.
The realized and unrealized profits or loss-
es arising from changes in the fair value of
financial assets valued at fair value through
the income statement, are recognized in
the profit and loss of the period they occur.
The fair values of financial assets that are
traded in active markets, are defined by
their prices. For non-traded assets, fair
values are defined with the use of valua-
tion techniques such as analysis of recent
transactions, comparative items that are
traded and discounted cash flows. The se-
curities that are not traded in an active mar-
ket that have been classified in the catego-
ry Financial assets available for sale, and
whose fair value cannot be determined in
an accurate and reliable way, are valued at
their acquisition cost.
At each balance sheet date the Group
assess whether there are objective indi-
cations that lead to the conclusion that
financial assets have been impaired. For
company shares that have been classified
as financial assets available for sale, such
an indication consists of a significant or ex-
tended decline in the fair value compared
to the acquisition cost. If impairment is es-
tablished, any accumulated loss in Equity,
which is the difference between acquisition
cost and fair value, is transferred to the re-
sults.
3.13 Inventories
At the balance sheet date, inventories are
valued at the lower of acquisition cost and
net realizable value. Net realizable value is
the estimated sales price during the normal
course of the company’s business less any
relevant sales expenses. The cost of inven-
tories does not include financial expenses.
3.14 Trade receivables
Receivables from customers are initially booked at their fair val-
ue and are subsequently valued at their amortized cost using
the method of the effective interest rate, less the provision for
impairment. In the event that the amortized cost or the cost of
a financial asset exceeds the present value, then this asset is
valued at its recoverable amount, i.e. at the present value of the
future cash flows of the asset, which is calculated using the real
initial interest rate.
The relevant loss is immediately transferred to the period’s profit
and loss. The impairment losses, i.e. when there is objective
evidence that the Group is unable to collect all the amounts
owed based on the contractual terms, are recognized in the
income statement.
3.15 Cash and cash equivalents
Cash and cash equivalents include cash in the bank and in hand
as well as short term highly liquid investments such as money
market products and bank deposits. Money market products
are financial assets which are valued at fair value through the
profit and loss account.
3.16 Non-current assets classified
as Held for sale
The assets available for sale also include other assets (includ-
ing Goodwill) and tangible fixed assets that the Group intends
to sell within one year from the date they are classified as “Held
for sale”.
The assets classified as “Held for sale” are valued at the lowest
value between their book value immediately prior to their clas-
sification as available for sale, and their fair value less the sale
cost. Assets classified as “Held for sale” are not subject to de-
preciation. The profit or loss that results from the sale and reas-
sessment of assets “Held for sale” is included in “other income”
and “other expenses” respectively, in the income statement.
3.17 Share capital
Expenses incurred for the issuance of shares reduce, after de-
ducting the relevant income tax, the proceeds from the issue.
Expenses related to the issuance of shares for the purchase of
companies are included in the acquisition cost of the company
acquired.
Where any Group company purchases the Company’s equity
share capital (Treasury shares), the consideration paid, includ-
ing any directly attributable incremental costs is deducted from
equity attributable to the Company’s equity
holders until the shares are cancelled, reis-
sued or disposed of. Where such shares
are subsequently sold or reissued, any
consideration received, net of any directly
attributable incremental transaction costs,
is included in equity attributable to the
Company’s equity holders. Treasury stock
does not hold any voting rights.
3.18 Income tax & deferred tax
The tax for the period comprises current
income tax and deferred tax, i.e. the tax
charges or tax credits that are associated
with economic benefits accruing in the
period but have been assessed by the
tax authorities in different periods. Income
tax is recognized in the income statement
of the period, except for the tax relating
to transactions that have been booked
directly to Equity. In such case the related
tax is, accordingly, booked directly to
Equity.
Current income taxes include the short-
term liabilities or receivables from the fiscal
authorities that relate to taxes payable on
the taxable income of the period and any
additional income taxes from previous pe-
riods (tax audit differences).
Current taxes are measured according to
the tax rates and tax laws prevailing dur-
ing the financial years to which they relate,
based on the taxable profit for the year. All
changes to the short-term tax assets or li-
abilities are recognized as part of the tax
expense in the income statement.
Deferred income tax is determined accord-
ing to the liability method which results
from the temporary differences between
the book value and the tax base of assets
or liabilities. Deferred tax is not booked if
it results from the initial recognition of an
asset or liability in a transaction, except for
a business combination, which when it oc-
curred did not affect neither the accounting
nor the tax profit or loss.
Deferred tax assets and liabilities are val-
ued based on the tax rates that are expect-
ed to be in effect during the period in which
