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)
iii) Other intangible assets:
Other intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost less accumulated
amortisation and accumulated impairment losses.
iv) Subsequent expenditure:
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to which
it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as
incurred.
v) Amortisation:
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than
goodwill, from the date that they are available for use.
Purchased software is amortised over estimated useful lives, which is between 3-5 years. Intangible assets related to HAVAŞ
acquisition are customer relationships and DHMİ licence. Customer relationships have 10 years useful life and DHMİ licence has
indefinite useful life. DHMİ licence is annually tested for impairment.
f) Service concession arrangements
TAV Esenboğa and TAV İzmir are bound by the terms of the BOT Agreements made with DHMİ. According to the BOT agreements,
TAV Esenboğa and TAV İzmir have guaranteed passenger fee to be received from DHMİ. The agreements cover a period up to January
2015 for TAV İzmir and May 2023 for TAV Esenboğa.
A BOT agreement was executed between TAV Tbilisi and JSC on 6 September 2005 for the operations of airport (both international,
domestic terminals and parking-apron-taxi ways). The agreement covers a period up to August 2027.
A BOT agreement was executed between TAV Tunisie and OACA on 18 May 2007, for the operation of existing Monastir Habib
Bourguiba Airport and new Enfidha Airport (International, domestic terminals and parking-apron-taxi-ways) which is planned to be
constructed in two years. The concession periods of both airports will end in May 2047.
i) Intangible assets
The Group recognizes an intangible asset arising from a service concession agreement when it has a right to charge for usage of
concession infrastructure. Intangible assets received as consideration for providing construction services in a service concession
agreement are measured at fair value upon initial recognition. Subsequent to initial recognition the intangible asset is measured at
cost less accumulated amortisation and accumulated impairment losses.
The airport operation right as an intangible asset is initially recognised at cost, being the fair value of consideration transferred
to acquire the asset, which is the fair value of the consideration received or receivable for the construction services delivered.
The fair value of the consideration received or receivable for the construction services delivered includes a mark-up on the actual
costs incurred to reflect a margin consistent with other similar construction work. Mark-up rates for TAV İzmir, TAV Esenboğa,
TAV Tbilisi and TAV Tunisie are 0%, 0%, 15% and 5%, respectively. As of 31 December 2008, total cost of airport operation right
is EUR 498,306,365 (EUR 111,500,212 for TAV Esenboğa, EUR 80,469,270 for TAV İzmir, EUR 49,948,468 for TAV Tbilisi and EUR
256,388,415 for TAV Tunisie) (31 December 2007: total cost of airport operation right is EUR 321,094,452 (EUR 111,500,212 for
TAV Esenboğa, EUR 80,422,360 for TAV İzmir, EUR 50,661,866 for TAV Tbilisi and EUR 78,510,014 for TAV Tunisie)).