TAV IT

TAV AIRPORTS HOLDING AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2008
(Amounts expressed in Euro unless otherwise stated)
Growth of the Group
The Group has experienced major and rapid growth in the recent years following the award of contracts at İstanbul Atatürk Airport,
İzmir Adnan Menderes Airport, Ankara Esenboğa Airport, Tbilisi International Airport, Batumi International Airport, Antalya
Gazipaşa Airport, Tunisia Monastir and Enfidha International Airports, Macedonia Skopje, Ohrid and Shtip Airports. In connection
with these contracts, the Group constructed the airports or made large prepayments for operational leasing under the terms of
concession agreements with airport authorities.
These long term projects, the leases and the acquisitions were financed through facilities from various third party lenders. These
borrowing facilities contained certain covenants that, among other things, required the Group to maintain certain financial ratios,
limited the Group’s and the shareholders’ ability to transfer assets outside of the Group and restricted the use of cash, and required
regular payments based on the terms of the borrowing facilities.
In addition to the growth in terminal and airport operations, TAV paid USD 125 million to acquire 60% of HAVAŞ shares in year 2005
and paid USD 115 million for the remaining 40% in November 2007.
2. BASIS OF PREPARATION
a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
(“IFRSs”).
The Group’s consolidated financial statements were approved by the Board of Directors on 27 March 2009.
b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for the following:
• derivative financial instruments are measured at fair value
• financial instruments at fair value through profit or loss are measured at fair value
• available-for-sale financial assets are measured at fair value
The methods used to measure fair values are discussed further in note 4.
c) Functional and presentation currency
TAV Holding and its subsidiaries operating in Turkey maintain their books of account and prepare their statutory financial
statements in New Turkish Lira (“TRY”) in accordance with the accounting principles as promulgated by the Capital Markets
Board of Turkey, the Turkish Commercial Code and tax legislation. The foreign subsidiaries and jointly controlled entities maintain
their books of account in accordance with the laws and regulations in force in the countries in which they are registered. The
accompanying consolidated financial statements expressed in EUR, the functional currency of TAV Holding, are based on the
statutory records, with adjustments and reclassifications, including re-measurement from TRY to EUR for the purpose of fair
presentation in accordance with IFRS.