100
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.
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
Construction contracts refer to the construction of assets or a group of affiliated assets specifically for
customers 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.
