Annual Financial Report for the period from 1st of January to the 31st of December 2012
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• Defined benefits scheme
The liability that is reported in the balance sheet with respect to this scheme is the present value of the li-
ability 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 commitment of the defined benefit is
calculated annually 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 un-
der the 10% margin of the accumulated liability, are booked in the results 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 depend 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:
Termination benefits are payable when employment is terminated be-
fore the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for
these benefits. The Group books these benefits when it is committed, either when it terminates the employ-
ment 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 pay-
able in periods that exceed twelve months from the Balance Sheet date, then they must be discounted based
on the yields of investment grade corporate or government bonds.
In the case of an offer that is made to encourage voluntary redundancy, the valuation of benefits for employ-
ment termination must be based on the number of employees that are expected to accept the offer.
In case of an employment termination where there is inability to asses the number of employees to use such
benefits, a disclosure for a contingent liability is made but no accounting treatment is followed.
3.19 Grants
The Group recognizes Government Grants that cumulatively satisfy the following criteria:
a) There is reasonable certainty that the company has complied or will comply to the conditions of the grant
and
b) it is probable that the amount of the grant will be received.
Government Grants are booked at fair value and are systematically recognized as revenues according to the
principle of matching the grants with the corresponding costs that they are subsidizing.
Government Grants that relate to assets are included in long-term liabilities as deferred income and are rec-
ognized systematically and rationally as revenues over the useful life of the fixed asset.
3.20 Provisions
Provisions are recognized when the Group has present obligations (legal or constructive) as a result of past
events, their settlement through an outflow of resources is probable and the exact amount of the obligation
