annual report 2004

A NNUAL R EPORT 2004PUBLIC POWER CORPORATION S.A.Notes to the consolidated financial statementsDecember 31, 2004(All amounts in thousands of Euro)use. Net selling price is the amount obtainable from the sale of an assetin an arm’s length transaction between knowledgeable, willingparties, after deducting any direct incremental selling costs, whilevalue in use is the present value of estimated future cash flows expectedto arise from continuing use of the asset and from its disposalat the end of its useful life. For the purpose of assessing impairment,assets are grouped at the lowest level for which there are separatelyidentifiable cash flows.(k)Customers’ Contributions and Subsidies for Fixed Assets: PPC’s customersare required to participate in the initial network connection cost (meteringdevices, substations, network connections etc.) or other type ofinfrastructure. In addition, PPC obtains subsidies from the Hellenic Republicand from the European Union (through the investment budget ofthe Hellenic Republic) in order to fund specific projects executedthrough a specific time period. Customers’ contributions and subsidiesare recorded upon collection and are reflected as deferred income(customers’ contributions and subsidies) in the accompanying balancesheets. Amortisation is accounted for in accordance with the useful lifeof the related assets, and is included in depreciation and amortisationin the accompanying statements of income (notes 24 and 34).(l)Software: Costs of purchased or self-generated software such as payroll,materials and services used and any other expenditure incurred in developingcomputer software and bringing the software into its intendeduse. Software costs are amortised on a straight-line basis over a periodof three years. Amortisation is included in depreciation and amortisationin the accompanying statements of income (notes 7 and 34).( 98 ) C HAPTER 6A PPENDICES