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)
Credit risk
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the
reporting date is:
Note 31 December 2008 31 December 2007
Other non-current assets (*) 24 - 811,514
Non-current trade receivables 25 156,306,856 179,431,221
Trade receivables 25 55,968,143 49,883,346
Due from related parties 40 15,160,247 4,702,897
Other receivables and current assets (*) 24 1,363,095 2,789,035
Investments held for trading 20 - 248,683
Restricted bank balances 27 254,097,284 257,520,816
Cash and cash equivalents (**) 26 59,033,656 64,254,581
Interest rate and cross currency swaps used for hedging 36 32,257,634 2,327,826
574,186,915 561,969,919
(*) Non-financial instruments such as advances given to DHMİ for VAT portion, VAT deductible and carried forward, prepaid
expenses and advances given are excluded from other current assets and other non-current assets.
(**) Cash on hand is excluded from cash and cash equivalents.
Impairment losses
The movements in the allowance for impairment in respect of trade receivables during the years ended 31 December were as
follows:
2008 2007
Balance at 1 January (1,389,209) (1,409,983)
Effect of group structure change - (533,377)
Collections during the year - 78,957
Impairment loss recognised (736,615) (46,458)
Released during the year - 676,397
Effect of change in foreign exchange rates 279,425 (154,745)
Balance at 31 December (1,846,399) (1,389,209)
Allowance for doubtful receivables is determined by reference to past default experience. The allowance accounts in respect of
trade receivables is used to record impairment losses unless the Group is satisfied that no recovery of the amount owing is possible;
at that point the amount considered irrecoverable is written off against the trade receivable directly.