TAV IT

194
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 sensitivity analysis for variable rate instruments:
Based on the Group’s current borrowing profile, a 50 basis points increase in Euribor or Libor would have resulted in additional annual
interest expense of approximately EUR 1 million on the Group’s variable rate debt when ignoring effect of derivative financial
instruments. EUR 0.6 million of the exposure is hedged through IRS contracts. Therefore, the net exposure on income statement
would be EUR 0.4 million. A 50 basis points increase in Euribor or Libor would have resulted a decrease in hedging reserve in equity
approximately by EUR 21 million.
Fair values
Fair values versus carrying amounts
The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows:
Note
31 December 2008 31 December 2007
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Financial assets
Other non-current assets (*) 24 - - 811,514 811,514
Non-current trade receivables 25 156,306,856 156,306,856 179,431,221 179,431,221
Trade receivables 25 55,968,143 55,968,143 49,883,346 49,883,346
Due from related parties 40 15,160,247 15,160,247 4,702,897 4,702,897
Other receivables and current assets (*) 24 1,363,095 1,363,095 2,789,035 2,789,035
Investments held for trading 20 - - 248,683 248,683
Restricted bank balances 27 254,097,284 254,097,284 257,520,816 257,520,816
Cash and cash equivalents 26 59,572,792 59,572,792 64,652,433 64,652,433
Derivative financial instruments 36 32,257,634 32,257,634 2,327,826 2,327,826
Financial liabilities
Bank overdraft 26 (1,844,425) (1,844,425) (1,970,698) (1,970,698)
Loans and borrowings 30 (1,096,791,093) (1,096,791,093) (998,580,666) (998,580,666)
Trade payables (**) 35 (27,179,134) (27,179,134) (21,585,202) (21,585,202)
Due to related parties 40 (62,020,611) (62,020,611) (29,298,699) (29,298,699)
Derivative financial instruments 36 (69,699,812) (69,699,812) (19,472,606) (19,472,606)
Other payables (**) 32 (24,452,701) (24,452,701) (16,843,529) (16,843,529)
(707,261,725) (707,261,725) (525,383,629) (525,383,629)
(*) Non-financial instruments such as prepaid expenses, prepaid taxes and dues and advances given are excluded from other noncurrent
assets and other receivables and current assets.
(**) Non-financial instruments such as advances received are excluded from trade payables and other payables.
The methods used in determining the fair values of financial instruments are discussed in Note 4.