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can be reliably estimated. Provisions are reviewed during the date when each balance sheet is compiled so
that they may reflect the present value of the outflow that is expected to be required for the settlement of the
obligation. Contingent liabilities are not recognized in the financial statements but are disclosed, except if the
probability that there will be an outflow of resources that embody economic benefits is very small. Contingent
claims are not recognized in the financial statements but are disclosed provided that the inflow of economic
benefits is probable.
3.21 Recognition of income and expenses
Income:
Income includes the fair value of goods and services sold, net of Value Added Tax, discounts and
returns. Intercompany revenue within the Group is eliminated completely. The recognition of revenue is done
as follows:
•
Construction Projects Contracts:
The income from the execution of construction contracts is accounted
for in the period the project is constructed, based on its completion stage.
•
Sale of goods:
Sales of goods are recognized when the Group transfers goods to customers, the goods are
accepted by them and the collection of the resulting claim is reasonably assured.
•
Provision of services:
Income from the provision of services is accounted for in the period during which
the services are rendered, based on the stage of completion of the service in relation to the total services
to be rendered.
•
Income from assigned rights for use of tangible assets (Compensative benefits):
The fair value of the
assigned rights is recognized as deferred income and are amortized through the income statement
according to the completion of the contracts for which these rights have been assigned.
•
Income Interest:
Interest income is recognized on a time proportion basis using the effective interest rate.
When there is impairment of assets, their book value is reduced to their recoverable amount which is the
present value of the expected future cash flows discounted using the initial real interest rate. Interest is
then booked using the same interest rate calculated on the impaired (new book) value.
•
Dividends:
Dividends are accounted for as revenue when the right to receive payment is established.
Expenses:
Expenses are recognized in the results on an accrued basis. The payments made for operating
leases are transferred to the results as an expense, during the time the lease is used. Interest expenses are
recognized on an accrued basis.
3.22 Leases
Group company as Lessee:
Leases of fixed assets with which all the risks and benefits related with ownership
of an asset are transferred to the Group, regardless of whether the title of ownership of the asset is eventually
transferred or not, are finance leases.
These leases are capitalized at the inception of the lease at the lower of the fair value of the asset and the
present value of the minimum lease payments. Each lease payment is apportioned between the reduction of
the liability and the finance charge so that a fixed interest rate on the remaining financial liability is achieved.
The relevant liabilities from leases, net of financial expenses, are reported as liabilities. The part of the financial
expense that relates to finance leases is recognized in the income statement during the term of the lease. Fixed
assets acquired through finance leases are depreciated over the shorter of their useful life and the lease term.
Lease agreements where the lessor transfers the right of use of an asset for an agreed period of time, without
transferring, however, the risks and rewards of ownership of the fixed asset are classified as operating leases.
