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)
Catering services income: Catering services income is recognised when services are provided. The Group defers revenue for collections
from long-term contracts until the services are provided. There are no deferred costs related to these revenues since these are
related with the selling rights given to food and beverage companies to sell their products at domestic and international lines
terminals as well as third parties out of the terminals where the subsidiaries operate.
Ground handling income: Ground handling income is recognised when the services are provided.
Commission: The Group subcontracts the right to operate certain duty free operations and the catering services to third parties. The
third parties pay the Group a specified percentage of their sales for the right to operate these concessions. The commission revenue
is recognised based on the sales reports provided from the subcontractor entities in every 2 to 3 days.
Software and system sales: Software and system sales are recognised when goods are delivered and title has passed or when
services are provided.
Lounge services: Lounge service income is recognised when services are provided.
Bus and car parking operations: Income from bus and car parking operations is recognised when services are provided.
m) Lease payments
Payments made under operating leases are recognised in profit and loss on a straight-line basis over the term of the lease.
Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the
outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate
of interest on the remaining balance of the liability.
Contingent lease payments are accounted for by revising the minimum lease payments over the remaining term of the lease when
the lease adjustment is confirmed.
n) Finance income and expenses
Finance income comprises interest income on funds invested (including available-for-sale financial assets), gains on the disposal of
available-for-sale financial assets, dividend income, changes in the fair value of financial assets at fair value through profit or loss,
unwinding of discount on guaranteed pasanger fee receivable from DHMİ, and gains on hedging instruments that are recognised in
profit or loss. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Dividend income is
recognised in profit or loss on the date that the Group’s right to receive payment is established.
Finance expenses comprise interest expense on borrowings, changes in the fair value of financial assets at fair value through profit
or loss, impairment losses recognised on financial assets, and losses on hedging instruments that are recognised in profit or loss.
Foreign currency gains and losses are reported on a net basis.