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)
The estimated useful lives for the current and comparative periods are as follows:
Buildings
Machinery and equipment
Vehicles
Furniture and fixtures
Leasehold improvements
50 years
4-15 years
5 years
2-15 years
1-18 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
e) Intangible assets
i) Goodwill:
Goodwill (negative goodwill) arises on the acquisition of subsidiaries, associates and joint ventures.
Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities of the acquiree. When the excess is negative (negative goodwill), it is recognised immediately in
profit or loss.
Acquisitions of minority interests
Goodwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the cost of the additional
investment over the fair value of the net assets acquired at the date of exchange.
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses.
ii) Intangible assets recognised in a business combination:
Customer relationships and DHMİ license are the intangible assets recognised during the purchase of HAVAŞ shares in years 2006
and 2007. In a business combination or acquisition, the acquirer recognises separately an intangible asset of the acquiree at the
acquisition date only if it meets the definition of an intangible asset in IAS 38 Intangible Assets and its fair value can be measured
reliably.
The fair values of DHMİ licence and customer relationship are determined by an independent external third party expert.
The Group applied proportionate consolidation method to account for its 60% ownership interest in HAVAŞ until 30 September
2007. Therefore, intangible assets arising from the initial acquisition of HAVAŞ were reflected by 60%, being the shareholding
of the Group, in the consolidated financial statements. In accordance with IFRS 3, the Group applied step acquisition during the
purchase of remaining 40% shareholding in HAVAŞ. Customer relationship and DHMİ licence were remeasured to their fair values.
The fair value change attributable to 60% portion is recorded to the revaluation reserve under equity. This figure reflected the
change in fair value of intangibles that were already carried in the consolidated financial statements prior to the acquisition of the
additional 40% shareholding.