Annual Financial Report for the period from1st of January to the 31st of December 2013
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that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an
impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably
estimated.
Alongside the above and according to paragraph 67 of IAS 39: When a decline in the fair value of an available-
for-sale financial asset has been recognized in other comprehensive income and there is objective evidence that
the asset is impaired (see paragraph 59), the cumulative loss that had been recognized in other comprehensive
income shall be reclassified from equity to profit or loss as a reclassification adjustment even though the
financial asset has not been derecognized.
Until the preparation of the interim financial report of 30.06.2013, the Company was in anticipation of any
progress related to the actions held by the Hellenic Republic regarding ELVO. Therefore, no reliable estimate
could be effected as regarding the Hellenic Republic Sector’s progress of actions and their respective
consequences on the Company’s investment value in ELVO.
However, after the announcement of the financial report of 30.09.2013 and onwards and following the
discussions between the Greek government and the country’s Lenders, the qualifying solution for ELVO, as
also shown in recent press release, involves the downsizing of the latter (along with Hellenic Defence Systems
S.A.), by retaining only one factory in operation for both entities in order to supply exclusively the Greek army.
It is noted that before the consent of the two parties in the above agreement, the initial position of the Lenders
was the shutdown of both aforementioned companies (ELVO and Hellenic Defence Systems S.A.), while
the initial position of Greek government was the demerge of both entities in military and civilian activities,
maintaining the military activity while liquefying the civilian.
During the preparation of financial report for the period ended 31.12.2013, the Company’s management has
assessed that said development will lead to a loss event regarding its Investment in ELVO.
As a result, on 31.12.2013 the amount of €13,4mil. for the Group and €15,9mil for the Company, are recognized,
according to paragraphs 67 and 68 of IAS 39, in the income statement as impairment loss.
• Revised version of IAS 19 ‘Employee Benefits’ (IAS 19R)
IAS 19R makes a number of changes to the accounting for employee benefits, the most significant relating to
defined benefit plans. IAS 19R:
- eliminates the ‘corridor method’ and requires the recognition of remeasurements (including actuarial
gains and losses) arising in the reporting period in other comprehensive income.
- changes the measurement and presentation of certain components of the defined benefit cost. The net
amount in profit or loss is affected by the removal of the expected return on plan assets and interest cost
components and their replacement by a net interest cost based on the net defined benefit asset or liability.
- enhances disclosures, including more information about the characteristics of defined benefit plans and
related risks.
IAS 19R has been applied retrospectively in accordance with its transitional provisions. Consequently, the
Group has restated its reported results throughout the comparative periods.
Regarding the effect on the statement of financial position, it should be noted that since the ‘corridor method’
was not utilized, there was no difference in the liabilities but only in the Reserves.
The effect on the statement of comprehensive income for the year ended 31 December 2012 is:
