86
3.8.2 Assumptions and estimations
The presentation of the value of specific assets and liabilities in the financial statements requires the use of
estimations that are based on assumptions relating to the values and conditions not known with certainty
during the compilation date of the financial statements. The Group continuously evaluates the estimations it
makes based on historical data, the research of specialized consultants, the trends and methods considered
appropriate for the estimation of specific conditions as well as estimations regarding how the assumptions
made may change in the future.
The accounting principles, applied by the Group for the reporting period are consistent with the accounting
principles applied for fiscal year 2012. In addition to the abovementioned and more specifically for the Annual
Financial Statements of 2013 the following are noted.
Asset Useful Life Revaluation
During 2013, the Group, based on the terms of paragraph 51 of IAS 16, proceeded to the revaluation of the
useful life of its basic productive units. More specifically the useful life of the following plants was revaluated:
i. Aluminium/Alumina production plant of Mytilineos Group subsidiary ALUMINIUM S.A. whose useful life
was estimated at 30 years.
ii. Electric power / heat cogeneration high efficiency plant of Mytilineos Group subsidiary ALUMINIUM S.A.
whose useful life was estimated at 30 years.
iii. Electric power plant of Mytilineos Group subsidiary PROTERGIA S.A. whose useful life was estimated at 30
years.
iv. Electric power plant of Mytilineos Group subsidiary KORINTHOS POWER S.A. whose useful life was
estimated at 30 years.
The revaluation took place, by taking into consideration the regulatory framework of the abovementioned
plants, as well as their technical conditions, specifications and pertinent maintenance schedules already being
applied.
If the Group has not engaged in this change of accounting policy, the depreciation charge for 2013 would have
been increased by €17.8 million, furthermore the earnings before taxes would have been decreased by the
same amount.
Impairment of Financial Assets Available for Sale
Mytilineos Group, since 01.10.2010, has resigned from its participation in the Board of Directors of ELVO
S.A. and therefore has no substantial influence over the latter. As a result, the Group has reclassified its
investment from ‘Investment in Associate Companies’ to ‘Financial Assets Available for Sale’. Following the
25.02.2011 announcement in which Mytilineos S.A. (the Company) stated its intention, if deemed necessary,
to transfer all ELVO shares under its ownership ‘for a token price’, the value of said Investment, was reported
with a zero balance in the 2010 Financial Report and the difference was recognized through the Statement
of Comprehensive Income. In addition, the Group disclosed that, in case the Hellenic Republic, made any
progress regarding the disposal of ELVO, it will recognize any difference arising between the disposal and the
acquisition price in the Income Statement of the pertinent year.
According to paragraph 59 of IAS 39: A financial asset or a group of financial assets is impaired and impairment
losses are incurred if, and only if, there is objective evidence of impairment as a result of one or more events
