Annual Financial Report for the period from1st of January to the 31st of December 2013
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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
recognized 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
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.
