Annual Financial Report for the period from 1st of January to the 31st of December 2012
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Payments made with respect to operating leases (net of any incentives offered by the lessor) are recognised in
the income statement proportionately throughout the term of the lease.
Group Company as lessor:
When fixed assets are leased through financial leasing, the present value of the
lease is recognized as a receivable. The difference between the gross amount of the receivable and its present
value is registered as a deferred financial income. The income from the lease is recognized in the period’s
results during the lease using the net investment method, which represents a constant periodic return.
Fixed assets that are leased through operating leases are included in the balance sheet’s tangible assets. They
are depreciated during their expected useful life on a basis consistent with similar self-owned tangible assets.
The income from the lease (net of possible incentives given to the lessees) is recognized using the constant
method during the period of the lease.
3.23 Construction contracts
Τα κατασκευαστικά συμβόλαια αφορούν την κατασκευή περιουσιακών στοιχείων ή ομάδα συνδεδεμένων
περιουσιακών στοιχείων ειδικά για πελάτες σύμφωνα με τους όρους που προβλέπονται στα σχετικά συμβόλαια
και των οποίων η εκτέλεση συνήθως διαρκεί για χρονικό διάστημα άνω της μια χρήσης.
Construction contracts refer to the construction of assets or a group of affiliated assets specifically for cus-
tomers according to the terms provided for in the relevant contracts and whose execution usually lasts for a
period of over one fiscal year.
The expenses that refer to the contract are recognized when occur.
In the case where the result of one construction contract may not by reliably valuated, and especially in the
case where the project is at a premature state, then:
• The income must be recognized only to the extent that the contractual cost may be recovered, and
• The contractual cost must be recognized in the expenses of the period in which it was undertaken.
Thus, for such contracts income is recognized in order for the profit from the specific project to equal zero.
When the result of a construction contract can be valuated reliably, the contract’s income and expenses are
recognized during the contract’s duration, respectively as income and expense.
The Group uses the “percentage of completion” method to define the appropriate income and expense amount
that will be recognized in a specific period.
The completion stage is measured based on the contractual cost that has been realized up to the balance sheet
date compared to the total estimated construction cost of each project.
When it is likely for the total contract cost to exceed the total income, then the expected loss is directly recog-
nized in the period’s results as an expense.
For the calculation of the cost realized until the end of the period, any expenses related to future activities re-
garding the contract are excluded and appear as a project under construction. The total cost that was realized
and the profit/loss that was recognized for each contract is compared with the progressive invoices until the
end of the period.
