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)
(ii)
(iii)
(iv)
Associates
Associates are those enterprises in which the Group has significant influence, but not control, over the
financial and operating policies. The consolidated financial statements include the Group’s share of the
total recognised gains and losses of associates on an equity accounted basis, from the date that
significant influence effectively commences until the date that significant influence effectively ceases
(refer to Note 5).
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised gains arising from intra-group transactions,
are eliminated in preparing the consolidated financial statements. Unrealised gains arising from
transactions with associates are eliminated to the extent of the Company’s interest in the enterprise.
Unrealised gains resulting from transactions with associates are eliminated against the investment in
the associate. Unrealised losses are eliminated in the same way as unrealised gains except that they
are eliminated to the extent that there is no evidence of impairment.
Other Non-Current Investments
Other non-current investments held by the Company are stated at cost.
(c) Significant subsidiaries
Country of
Incorporation
Ownership Interest
1999
Ownership Interest
June 30,2000
Minoan Cruises S.A. Greece 53.71% 53.71%
Minoan Change S.A. Greece 100% 100%
Minoan Lines High Speed Ferries S.A. Greece 57.46% 57.46%
Cretan Philoxenia S.A. Greece 99.95% 99.99%
(d) Foreign currency translation
The Company's functional currency is the Greek drachma. Transactions involving other currencies are
converted into Greek drachmae using the exchange rates, which are in effect at the time of the
transactions. Monetary assets and liabilities, which are denominated in foreign currencies at the balance
sheet date are translated to drachmae at the exchange rate ruling at that date. Non-monetary assets and
liabilities denominated in foreign currencies, which are stated at historical cost, are translated to drachmae at
the exchange rate ruling at the dates of the transaction. Gains or losses resulting from foreign currency
transactions are reflected in the accompanying consolidated statements of income.
(e) Vessels and related depreciation
Vessels are stated at historical cost, which consists of the contract price, any material expenses incurred
upon acquisition, reconstruction costs and borrowing costs incurred during construction or reconstruction
periods. Subsequent expenditures for conversions and improvements are also capitalised when they
appreciably extend the life, increase the earning capacity or improve the efficiency or safety of the vessels.
Otherwise they are charged to operations as incurred.
Depreciation is calculated using the straight-line method over the estimated useful life of the vessels (thirtyfive
years) after taking into consideration the estimated salvage value of the vessels (calculated at 20% of
the original cost of the vessel).
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