84
Right of Use of Tangible Assets:
Rights of exploitation of tangible assets that are granted in the frames of
conventions of manufacture of work (compensative profits) are valued in cost of acquisition, which equals their
fair value at the date of their concession, less accumulated depreciation. Depreciation is calculated using the
“production units method”.
Research and Development Expenses:
Research and Development expenditures are recognized as expenses
when they are realized. The expenses which arise from the developing programs (related to the design and
the test of new or improved products) are capitalized if it is possible to produced future economic benefit. The
other development expenditures are booked as an expense in the results when they are realized. Previous
years’ development expenditures recognized as expenses, can not be capitalized in the future fiscal years. The
capitalized development expenses are depreciated from the beginning of the product’s economic life using
the straight line method during the period of the product’s future economic benefits. The Group’s depreciation
period doesn’t exceed the 5 years.
Land Stripping & Restoration expenses:
Land Stripping & Restoration expenses are capitalized and amortized
using the unit of production method.
Borrowing costs:
Borrowing costs that are directly attributable to the acquisition, construction or production of
a qualifying asset shall be capitalized as part of the cost of that asset. The amount of borrowing costs eligible
for capitalization shall be determined in accordance with IAS 23.
3.7 Impairment of Assets
Assets with an indefinite useful life are not depreciated and are subject to an impairment review annually and
when some events suggest that the book value may not be recoverable any resulting difference is charged to
the period’s results. Assets that are depreciated are subject to an impairment review when there is evidence
that their value will not be recoverable. The recoverable value is the greater between the net sales value and
the value in use. An impairment loss is recognized by the company when the book value of these assets (or cash
generating unit- CGU) is greater than its recoverable amount.
Net sales value is the amount received from the sale of an asset at an arm’s length transaction in which
participating parties have full knowledge and participate voluntarily, after deducting any additional direct cost
for the sale of the asset, while value in use is the present value of estimated future cash flows that are expected
to flow into the company from the use of the asset and from its disposal at the end of its estimated useful life.
3.8 Important accounting decisions, estimations and assumptions
The compilation of financial statements according to IFRS requires the management to make decisions,
perform estimations and use assumptions that affect the amounts presented in the financial statements, the
assets, liabilities, income and expenses. The actual results may differ due to such estimations. Estimations
are continuously enhanced and are based on historical data and other factors, such as expectations for future
events expected to realize under current conditions.
3.8.1 Accounting decisions
During the implementation procedure for accounting policies, decisions are made by the management, which
relate to the following:
