Consolidated Financial Statements - Minoan Lines

MINOAN LINES SHIPPING S.A. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENS
(Amounts expressed in thousands of drachmae unless otherwise stated)
(f) Property, plant and equipment and related depreciation
Property, plant and equipment are stated at cost. Depreciation is computed based on the straight-line
method over the estimated useful lives. The estimate useful lives are as follows:
Buildings
Transportation equipment
Furniture and fittings
(g) Goodwill
20 years
7 – 8 years
5 years
Goodwill arising on acquisition represents the excess of the cost of the acquisition over the fair value of the
net identifiable assets acquired. In respect of associates, the carrying amount of goodwill is included in the
carrying amount of the investment in associate.
(h) Impairment
The carrying amounts of the Company’s assets, other than inventories, are reviewed to determine whether
there is any indication of impairment. If any such indication exists, the assets' recoverable amount is
estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cashgenerating
unit exceeds its recoverable amount.
(i) Deferred charges
Deferred charges mainly consist of the cost of the operating licenses of the vessels and other costs, such as
formation expenses (legal fees, etc.) are being amortised on a straight-line basis over a maximum period of
five years.
(j) Inventories
Inventories consist of bunkers, lubricants, engine spares and stores, deck stores, duty free goods, and
consumables on board. Inventories are reflected at the lower of cost and net realisable value cost being
determined by the first-in, first-out method and are expensed in the period of consumption.
(k) Other investments
Investments held for trading are classified as current assets and are stated at fair value, with any resultant
gain or loss recognised in the consolidated income statement. Other investments held by the Group are
classified as being available-for-sale are stated at fair value, with any resultant gain or loss recognised in the
consolidated income statement.
The fair value of investments held for trading is their quoted price, excluding disposal costs, at the balance
sheet date.
(l) Cash and cash equivalents
All highly liquid investments with an ordinary maturity of three months or less as of the date of purchase are
considered to be cash equivalents.
(m) Government grants
Government grants in respect of capital expenditures are credited to a deferred income account and are
released to profit over the expected remaining useful lives of the relevant assets by equal annual
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