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Annual Financial Statements
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Upon initial recognition it is designated by the company as an instrument val-
ued 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 legislatively im-
posed 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 maturi-
ty 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 designated as such
or cannot be included in any of the previous categories.
Financial assets available for sale are valued at fair value and the relevant 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 purchases and sales of investments
are recognized during the transaction 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
transaction are not added for items valued at fair value through the income state-
ment. 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
interest method.
The realized and unrealized profits or losses arising from changes in the fair value
of financial assets valued at fair value through the income statement, are recog-
nized 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 valu-
ation techniques such as analysis of recent transactions, comparative items that
are traded and discounted cash flows. The securities that are not traded in an
active market that have been classified in the category 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 indica-
tions 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 extended decline in the fair value
compared to the acquisition cost. If impairment is established, any accumulated
loss in Equity, which is the difference between acquisition cost and fair value, is
transferred to the results.
3.12 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 inventories does not include financial expenses.
3.13 Trade receivables
Receivables from customers are initially booked at
their fair value 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.
3.14 Cash and cash equivalents
Cash and cash equivalents include cash in the bank
and in hand as well as short term highly liquid invest-
ments such as money market products and bank
deposits. Money market products are financial as-
sets which are valued at fair value through the profit
and loss account.
3.15 Non-current assets classified
as Held for sale
The assets available for sale also include other as-
sets (including 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 immedi-
ately prior to their classification as available for sale,
and their fair value less the sale cost. Assets classi-
fied as “Held for sale” are not subject to deprecia-
tion. The profit or loss that results from the sale and
reassessment of assets “Held for sale” is included in
“other income” and “other expenses” respectively,
in the income statement.
3.16 Share capital
Expenses incurred for the issuance of shares re-
duce, after deducting 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 Com-
pany’s equity share capital (Treasury shares), the
consideration paid, including any directly attribut-
able incremental costs is deducted from equity attributable to the
Company’s equity holders until the shares are cancelled, reissued 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.
3.17 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
periods (tax audit differences).
Current taxes are measured according to the tax rates and tax laws
prevailing during the financial years to which they relate, based on
the taxable profit for the year. All changes to the short-term tax assets
or liabilities are recognized as part of the tax expense in the income
statement.
Deferred income tax is determined according 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 transac-
tion, except for a business combination, which when it occurred did
not affect neither the accounting nor the tax profit or loss.
Deferred tax assets and liabilities are valued based on the tax rates
that are expected to be in effect during the period in which the asset or
liability will be settled, taking into consideration the tax rates (and tax
laws) that have been put into effect or are essentially in effect up until
the balance sheet date. In the event where it is impossible to identify
the timing of the reversal of the temporary differences, the tax rate in
effect on the day after the balance sheet date is used.
Deferred tax assets are recognized to the extent that there will be a
future tax profit to be set against the temporary difference that creates
the deferred tax asset.
Deferred income tax is recognized for the temporary differences that
result from investments in subsidiaries and associates, except for the
case where the reversal of the temporary differences is controlled by
the Group and it is possible that the temporary differences will not be
reversed in the foreseeable future.
Most changes in the deferred tax assets or liabilities are recognized as
part of the tax expense in the income statement. Only changes in as-
sets or liabilities that affect the temporary differences are recognized
directly in the Equity of the Group, such as the revaluation of property
value, that results in the relevant change in deferred tax assets or li-
abilities being charged against the relevant Equity account.
3.18 Employee benefits
Short-term benefits:
Short-term employee benefits (except post-
employment benefits) monetary and in kind are recognized as an
expense when they accrue. Any unpaid amount is booked as a liabil-
ity, while in the case where the amount paid exceeds the amount of
services rendered, the company recognizes the excess amount as an
asset (prepaid expense) only to the extent that the
prepayment will lead to a reduction of future pay-
ments or to reimbursement.
Post-employment benefits:
Post-employment
benefits comprise pensions or other benefits (life
insurance and medical insurance) the company
provides after retirement as an exchange for the
employees’ service with the company. Thus, such
benefits include defined contribution schemes as
well as defined benefits schemes. The accrued cost
of defined contribution schemes is booked as an ex-
pense in the period it refers to.
•
Defined contribution scheme
According to the defined contributions scheme,
the (legal or implied) obligation of the company
is limited to the amount that it has been agreed
that it will contribute to the entity (i.e. pension
fund) that manages the contributions and pro-
vides the benefits. Thus the amount of ben-
efits the employee will receive depends on the
amount the company will pay (or even the em-
ployee) and from the paid investments of such
contributions.
The payable contribution from the company to
a defined contribution scheme, is either recog-
nized as a liability after the deduction of the paid
contribution, or as an expense.
•
Defined benefits scheme
The liability that is reported in the balance sheet
with respect to this scheme is the present value
of the liability for the defined benefit less the fair
value of the scheme’s assets (if there are such)
and the changes that arise from any actuarial
profit or loss and the service cost. The com-
mitment of the defined benefit is calculated an-
nually by an independent actuary with the use
of the projected unit credit method. The yield of
long-term Greek Government Bonds is used as
a discount rate.
The actuarial profit and losses are liability items
for the company’s benefits and for the expense
that will be recognized in the results. Such that
emerge from adjustments based on historical
data and are over or under the 10% margin of
the accumulated liability, are booked in the re-
sults in the expected average service time of the
scheme’s participants. The cost for the service
time is directly recognized in the results except
for the case where the scheme’s changes de-
pend on the employees’ remaining service with
the company. In such a case the service cost
is booked in the results using the straight line
method within the maturity period.
Benefits for employment termination:
Termina-
tion benefits are payable when employment is ter-
minated before the normal retirement date, or when-
ever an employee accepts voluntary redundancy
in exchange for these benefits. The Group books
these benefits when it is committed, either when it
terminates the employment of existing employees
according to a detailed formal plan for which there
is no withdrawal possibility, or when it provides such
benefits as an incentive for voluntary redundancy.
When such benefits are deemed payable in peri-
