TAV IT

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TAV Airports Holding Annual Report 2008
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)
Cash flow hedges
Changes in the fair value of the derivative hedging instrument designated as a cash flow hedge are recognised directly in equity to
the extent that the hedge is effective. To the extent that the hedge is ineffective, changes in fair value are recognised in profit or
loss.
If the hedging instrument no longer meets the criteria for hedge accounting, expires or is sold, terminated or exercised, then
hedge accounting is discontinued prospectively. The cumulative gain or loss previously recognised in equity remains there until the
forecast transaction occurs. When the hedged item is a non-financial asset, the amount recognised in equity is transferred to the
carrying amount of the asset when it is recognised. In other cases the amount recognised in equity is transferred to profit or loss in
the same period that the hedged item affects profit or loss.
iii) Share capital:
Ordinary shares are classified as equity.
d) Property and equipment
i) Recognition and measurement:
Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes
the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its
intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. Purchased
software that is integral to the functionality of the related equipment is capitalised as part of that equipment. Investment income
earned on the temporary investment of specific borrowings pending their expenditure on qualifying amounts is deducted from the
borrowing costs eligible for capitalisation.
When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major
components) of property and equipment.
Gains and losses on disposal of an item of property and equipment are determined by comparing the proceeds from disposal with
the carrying amount of property and equipment and are recognised net within “other operating income” in profit or loss.
ii) Subsequent costs:
The cost of replacing part of an item of property and equipment is recognised in the carrying amount of the item if it is probable
that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The
carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property and equipment are
recognised in profit or loss as incurred.
iii) Depreciation:
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each part of an item of property
and equipment. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain
that the Group will obtain ownership by the end of the lease term. Land is not depreciated.