REG - Public Power Corp - Annual Financial Report <Origin Href="QuoteRef">DEHr.AT</Origin> - Part 8
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were issued but have not been
adopted in the accounting period, beginning in January 1st 2016:
· IFRS 9 Financial Instruments" and subsequent amendments to IFRS 9 - Classification and Measurement
The standard is effective for annual periods beginning on or after January 1st 2018 and earlier application is permitted.
The final version of IFRS 9 (2014) replaces the guidance in IAS 39 'Financial Instruments: Recognition and Measurement'
which deals with the classification and measurement of financial assets and financial liabilities and it also includes an
expected credit losses model that replaces the incurred loss impairment model used today. Moreover, if a financial
liability has been classified (in accordance to IFRS 9) at fair value through Profit and Loss, any movement in fair value
resulting from a movement in the entity's credit risk, will be accounted for in other comprehensive income instead of in
the income statement. IFRS 9 also establishes a more principles-based approach to hedge accounting and addresses
inconsistencies and weaknesses in the current model in IAS 39. The management of the Group is in the process of assessing
the impact of this amendment on the Group's financial statements.
· IFRS 14 Regulatory Deferral Accounts
The standard is effective for annual periods beginning on or after January 1st 2016. The aim of this interim standard is to
enhance the comparability of financial statements of entities engaged in activities with regulated prices, where
governments regulate the supply and pricing of certain types of activity. These may include the provision of public
services such as gas, electricity and water. Regulatory pricing may have a significant impact on the timing of recognition
and the amount of an entity's revenue. The IASB is scheduled to consider the broader regulatory pricing issues and was
planning to publish a discussion paper on this subject in 2014. In anticipation of the overall project results for
activities with regulated prices, the IASB decided to develop IFRS 14 as a temporary measure. IFRS 14 allows those who
adopt for the first time IFRS to continue to recognize the amounts relating to tariff adjustments in accordance with the
requirements of the previously applied accounting policies when adopting IFRS. However, to enhance comparability with
entities already applying IFRS and do not recognize such amounts, the standard requires that the effect of the pricing
adjustment to be shown separately from other items. An entity that already prepares its financial statements according to
IFRS, can not implement this standard. The European Union has not yet adopted this standard. The management of the Group is
currently assessing the impact of this standard on the Group's financial statements.
3.5 NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE (CONTINUED)
· IFRS 15 Revenue from Contracts with Customers
The standard is effective for annual periods beginning on or after January 1st 2018. The standard, issued on May 2014,
contains more authoritative and precise requirements in comparison to the current standards (IAS 18 and IAS 11). The
objective of the standard is to provide a single, comprehensive revenue recognition model for all contracts with customers
to improve comparability within industries, across industries, and across capital markets. It contains principles that an
entity will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is
that an entity will recognise revenue to depict the transfer of goods or services to customers at an amount that the entity
expects to be entitled to in exchange for those goods or services, by applying a five step process.
• Identify the contract with a customer
• Identify the performance obligations criteria in the contract
• Determine the transaction price
• Allocate the transaction price to separate performance obligations
• Recognize revenue as the entity satisfies a performance obligation
The management of the Group is in the process of assessing the impact of this standard on the Group's financial statements.
The standard has been endorsed by the EU on September 22nd 2016.
· IFRS 16: Leases
The standard is effective for annual periods beginning on or after January 1st 2019. IFRS 16 establishes principles for the
recognition, measurement, presentation and disclosure of leases for both parties to the contract, that is for the customer
( "lessees ") and the supplier ('lessor'). The new standard requires lessees to recognize most of the leases in their
financial statements. Lessees will have a single accounting framework for all leases, with some exceptions. Accounting
treatment for lessors remains essentially unchanged. The European Union has not yet adopted this standard. The management
of the Group is currently assessing the impact of the application of this standard on the Group's financial statements.
· IAS 12: Recognition of Deferred Taxes for Unrealized Losses (Amendments)
The amendments are effective for annual periods beginning on or after January 1st 2017. These amendments clarify the
accounting for deferred tax assets for unrealised losses on debt instruments measured at fair value. The management of the
Group is in the process of assessing the impact of this standard on the Group's financial statements. The amendments have
not yet been endorsed by the EU.
· IAS 7: Cash flow statement (Amendments)
The amendments are effective for annual periods beginning on or after January 1st 2017. These amendments require entities
to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing
activities. The management of the Group is in the process of assessing the impact of this amendment on the Group's
financial statements. The amendments have not yet been endorsed by the EU.
· IFRS 2: Classification and measurement of Shared-based Payment transactions (Amendment)
The amendment is effective for annual periods beginning on or after January 1st 2018. The amendment clarifies the
measurement basis for cash-settled, share-based payments and the accounting for modifications that change an award from
cash-settled to equity-settled. It also introduces an exception to the principles in IFRS 2 that will require an award to
be treated as if it was wholly equity-settled, where an employer is obliged to withhold an amount for the employee's tax
obligation associated with a share-based payment and pay that amount to the tax authority. The management of the Group is
in the process of assessing the impact of this standard on the Group's financial statements. The amendments have not yet
been endorsed by the EU.
· IFRS 4 : Implementation of IFRS 9 in relation to IFRS 4 (Amendment)
The amendments are effective for annual periods beginning on or after January 1st 2018. The Council adopted amendments to
IFRS 4 to address the concerns arising from the application of the new financial instruments standard (IFRS 9), before the
application of the new modified by the council IFRS 4. The amendments introduce two approaches: duplication and deferral.
The amended standard will:
• give to all companies that issue insurance contracts the option to recognize in other comprehensive income, rather
than profit or loss, the volatility that could arise when IFRS 9 is applied before the new insurance contracts standard is
issued
• give to companies whose activities are predominantly connected with insurance an optional temporary exemption from
applying IFRS 9 until 2021
The amendments have not yet been endorsed by the EU. The management of the Group is in the process of assessing the impact
of this standard on the Group's financial statements.
3.5 NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE (CONTINUED)
· Clarifications in IFRS 15 - Revenues from contracts with customers.
The amendment is effective for annual periods beginning on or after January 1st 2018. In April 2016, the Council has issued
clarifications to IFRS 15. The amendments to IFRS 15 do not change the basic principles of the Standard but provide
clarifications on the application of these principles. The amendments clarify the way in which a performance obligation is
recognized in a contract, how to determine whether an entity is the principal or the representative, and how to determine
whether the income from the granting of a license should be recognized in a specific time or over time. The management of
the Group is in the process of assessing the impact of this standard on the Group's financial statements
The IASB has issued the Annual Improvements to IFRSs 2014 - 2016 Cycle, which is a collection of amendments to IFRSs. The
amendments are effective for annual periods beginning on or after January 1st 2017. The amendments have not yet been
endorsed by the EU. The Group is in the process of assessing the impact of these amendment on the Group's financial
statements.
· IAS 28 (Amendment) - Measurement of Associates or Joint Ventures at Fair Value : The amendment clarifies that when
venture capital organisations, mutual funds, unit trusts and similar entities elect to measure their investments in
associates or joint ventures at fair value through profit or loss (FVTPL), this election should be made separately for each
associate or joint venture at initial recognition.
· IFRS 12 Disclosures of Interests in Other Entities : Clarification of the scope of the standard: The amendment
clarified the scope of the standard specifying that the disclosure requirements of the standard, except those of paragraphs
B10-B16 are applicable to an entity's shareholdings, regardless of being classified as held for sale, held for distribution
or as discontinued operations according to IFRS 5 "Non-current assets held for sale and discontinued operations".
· IAS 40 Investment Property (Amendment) Transfer of Investment Property.
The amendment is effective for annual periods beginning on or after January 1st 2018. The amendment to IAS 40 clarifies
that an entity may transfer a property to or from investment property when, and only when there are indications of a
change in use. A change of use occurs if the property meets or no longer meets the definition of investment property. A
change in the intentions of the management for the use of the property itself is not an indication of a change in use. The
amendment has not yet been endorsed by the European Union. The management of the Group is in the process of assessing the
impact of this standard on the Group's financial statements.
· IFRIC 22 "Foreign currency transactions and advance consideration"
The interpretation is effective for annual periods beginning on or after January 1st 2018. IFRIC 22 clarifies the
accounting treatment for transactions that involve the receipt or payment of foreign currency advance payments. In
particular, it applies to foreign currency transactions when the entity recognizes a non-monetary asset or non-monetary
liability arising from the payment or collection of advance payments before the entity recognizes the asset, expense or
revenue. According to the interpretation, the date of the transaction for the purposes of determining the exchange rate
shall be the date of initial recognition of non-monetary prepayments of the the asset or liability from advance payments.
If there are multiple payments or receipts in advance, the transaction date is speciafied separetely for each payment or
receipt.
4. REVENUES
Group Company
2016 2015 2016 2015
Energy sales
- High voltage 334,461 357,801 334,362 357,601
- Medium voltage 777,724 990,202 779,625 992,245
- Low voltage 3,870,521 4,185,907 3,870,521 4,185,907
- Renewable Energy Sourses 15,371 13,172 - -
4,998,077 5,547,082 4,984,508 5,535,753
- Received customers' contributions 55,903 54,343 55,899 54,343
-Public Service Obligations 48,178 26,367 48,178 26,454
- Distribution Network Revenues 48,980 25,168 - -
- Other 70,166 56,354 66,665 58,852
223,227 162,232 170,742 139,649
Total Continuing Operations 5,221,304 5,709,314 5,155,250 5,675,402
Discontinued Operations 35,893 26,342 - -
Total 5,257,197 5,735,656 5,155,250 5,675,402
5. PAYROLL COST
Group Company
2016 2015 2016 2015
Payroll cost 683,216 689,917 444,826 453,476
Employer' social contributions 218,279 211,826 138,506 139,905
Provision for reduced tariffs (Note 29) (4,433) (8,644) (2,494) (5,310)
Payroll cost included in fixed assets (74,409) (73,285) (22,902) (22,131)
Total Continuing Operations 822,653 819,814 557,936 565,940
Discontinued Operations 61,788 60,454 - -
Total 884,441 880,268 557,936 565,940
6. ENERGY PURCHASES
Group Company
2016 2015 2016 2015
DAS and arrangements of differences 803,423 845,905 803,423 845,905
Energy imports from abroad 52,508 132,130 85,503 141,562
Other domestic energy purchases 96,349 129,443 111,792 144,471
Transisional flexibility assurance compensation 48,712 - 48,712 -
Purchase rights 13,649 30,943 13,806 31,190
Special taxes 52,505 66,899 52,505 66,899
Additional Suppliers' charge for Special RES account 28,397 - 28,397 -
Arrangement of losses 24,804 32,770 24,804 32,770
Average variable cost thermal units. 32,699 28,720 32,699 28,720
Net charge for ancillary services 43,028 43,338 43,028 43,338
Generation losses from the sale of NOME products 4,513 - 4,513 -
Other purchases 39,741 25,573 6,394 15,863
Total Continuing Operations 1,240,328 1,335,721 1,255,576 1,350,718
Discontinued Operations (12,766) (22,559) - -
Total 1,227,562 1,313,162 1,255,576 1,350,718
7. DEPRECIATION AND AMORTISATION
Group Company
2016 2015 2016 2015
Depreciation / Amortisation
- Fixed assets (Note 14) 738,602 746,562 726,358 734,857
- Software (Note 15) 6,356 5,199 4,649 3,934
- Trasfer to subsidies and customers'
Contributions (Note 32) (75,868) (75,750) (75,660) (75,580)
Total Continuing Operations 669,090 676,011 655,347 663,211
Discontinued Operations 63,207 61,738 - -
Total 732,297 737,749 655,347 663,211
8. EMISSION ALLOWANCES (CO2)
According to the current European and National legislation, during the 3rd implementation phase of the EU ETS (period
2013-2020), PPC is not entitled to free allocation of emission allowances for its bound stations, with the exception of
allowances allocated for emissions corresponding to the generation of thermal power for district heating.
In accordance with its verified CO2 emissions for 2015, the emission allowances that PPC for the the period January 1st
2015 to December 31st 2015 amounted to 34.3 Mt. During 2015, PPC has been allocated with about 87.2 thousand emission
allowances for district heating emissions.
Similarly, in accordance with its verified CO2 emissions for 2016, the emission allowances that PPC delivered for the
period from January 1st 2016 to December 31st 2016 amounted to 28.4 Mt. During 2016, PPC has been allocated with about 62.8
thousand emission allowances for district heating emissions.
The CO2emission rights' deficit consumptions are as follows :
2016 2015
Cover of emissions from purchased EUAS 178,138 250,981
Cover of prior year deficit - 46
Managing expenses 34 101
Total 178,172 251,128
9. FINANCIAL EXPENSES
Group Company
2016 2015 2016 2015
Interest Expenses 184,827 204,701 184,828 204,701
Bank charges 4,517 1,268 2,242 1,124
Amortisation of loans' issuance costs 7,181 7,143 7,181 7,143
Commissions on letter of guarantee 25,050 26,521 24,997 26,490
Finance cost on mines' restorations provision (Note 31) 1,456 1,534 1,456 1,534
Total Continuing Operations 223,031 241,167 220,704 240,992
Discontinued Operations 27,875 24,868 - -
Toatal 250,906 266,035 220,704 240,992
10. FINANCIAL INCOME
Group Company
2016 2015 2016 2015
Interest on outstanding energy receivables 87,930 54,708 87,930 54,708
Commission on subsidiary loans' quarantee 9,425 9,425 9,425 9,425
Interest on bank and time deposits (Note 23) 4,562 5,768 2,162 4,832
Dividends from subsidiaries 17,773 34,987 21,322 34,987
Επιστροφή Κεφαλαίου θυγατρικής ΑΔΜΗΕ 92,944 - 92,944 -
Change in derivatives fair value (Note 29) 689 2,876 689 2,877
Other 942 1,036 583 870
Total Continuing Operations 214,265 108,800 215,055 107,699
Discontinued Operations (117,525) (41,213) - -
Total 96,740 67,587 215,055 107,699
The amount of E 92,944 relates to a cash upstream from the subsidiary IPTO under the provisions of Law 4389/2016 (articles
143 and 147) through the increase of its share capital by the capitalization of reserves from previous years retained
earnings and then the reduction of its share capital by an amount equal to the resulted amount by the above increase. The
amount will be paid to the Parent Company upon completion of IPTO's ownership unbudling.
11. OTHER (INCOME) / EXPENSE, NET
Group Company
2016 2015 2016 2015
OTHER EXPENSE
Transportation and travel expenses 15,970 13,256 7,798 8,238
Taxes and duties 45,922 56,121 42,444 52,549
Losses on disposal of fixed assets 9,416 17,749 11,050 17,915
Consumable 5,685 5,858 5,389 5,582
DAS deficit (Note 37) 63,522 - 63,522 -
Settlement with DEPA (Note 37) 22,567 - 22,567 -
Other 97,450 27,935 81,436 14,731
260,532 120,919 234,206 99,015
OTHER INCOME
Penalties to suppliers / contractors (3,891) (1,887) (3,376) (1,077)
Subsidies to expenses (3,186) (1,653) (3,186) (1,653)
Income from rentals (2,531) (2,428) (12,684 (12,632)
Other (36,115) (14,682) (41,876) (22,680)
(45,723) (20,650) (61,122) (38,042)
Total Continuing Operations 214,809 100,269 173,084 60,973
Discontinued Operations 4,835 3,622 - -
Total 219,644 103,891 173,084 60,973
12. DISCONTINUED OPERATIONS - IPTO'S OWNERSHIP UNBUDLING
As described in Notes 2 and 16, the process of the ownership unbudling of the subsidiary IPTO S.A. is in progress according
to the provisions of Law. 4389/2016 (Articles 142-149 and 152).
The Group's and Parent Company's Management believes that as of December 31st 2016 the criteria of IFRS 5 "Non-current
assets held for sale and discontinued operations" and of IFRIC 17 "Distribution of Non-cash Assets to Owners" are met and
as a consequence, investment in IPTO S.A. was classified as held for sale and distribution accordingly (Discontinued
Operations).
In the following table the analysis of results from Discontinued Operations for the years 2016 and 2015 respectively is
presented.
01.01.-31.12.2016 01.01.-31.12.2015
REVENUES
Revenue from energy sales (383) -
Other sales 36,276 26,342
35,893 26,342
EXPENSES
Payroll cost 61,788 60,454
Depreciation and amortization 63,207 61,738
Energy purchases (12,766) (22,559)
Materials and consumables 2,958 1,538
Transmission system usage (177,911) (206,011)
Utilities and maintenance (5,465) (8,203)
Third party fees 3,868 3,060
Provision for risks 11,768 27,548
Provision for slow moving materials 206 (411)
Allowance for doubtful balances (4,707) (2,084)
Financial expenses 27,875 24,868
Financial income 117,525 41,213
Other (income) / expenses, net 4,835 3,622
93,181 (15,227)
PROFIT / (LOSS) BEFORE TAX FROM DISCONTINUED OPERATIONS (57,288) 41,569
Income tax (56,781) (26,385)
PROFIT / (LOSS) AFTER TAX FROM DISCONTINUED OPERATIONS (114,069) 15,184
Plus intra - Group transactions 111,396 20,362
PROFIT / (LOSS) AFTER TAX FROM IPTO's SEPARATE FINANCIAL STATEMENTS (2,673) 35,546
12. DISCONTINUED OPERATIONS - IPTO's OWNERSHIP UNBUDLING (CONTINUED)
In the following table the analysis of Assets and Liabilities from discontinued operations as of December 31st 2016 is
presented.
31.12.2016
Non - Current Assets
Tangible assets 1,581,699
Intangible assets 36
Other non - current assets 33,449
1,615,184
Current Assets
Materials, spare parts and supplies 41,635
Trade receivables 115,785
Other receivables 22,763
Income tax receivable 20,022
Other current assets 54,091
Cash and cash equivalents 294,084
548,380
Total Assets from discontinued operations 2,163,564
Non - Current Liabilities
Long - term borrowing 145,000
Post retirement benefits 29,928
Provisionsς 54,936
Deferred tax liabilities 129,113
Deferred customers' contributions and subsidies 209,379
Other non - current liabilities 6,082
580,059
Current Liabilities
Trade and other payables 695,838
Short - term borrowings 47,015
Current portion of long - term borrowing 306,112
Income tax payable 45,727
Accrued and other liabilities 115,849
1,204,920
Total Liabilities from discontinued operations 1,784,979
13. INCOME TAXES (CURRENT AND DEFERRED)
Group Company
2016 2015 2016 2015
Current income taxes 72,373 136,868 61,856 117,124
Deferred income tax (28,047) (187,213) (28,754) (200,509)
Deferred income tax - Effect ofchange in tax rate - 16,946 - 26,119
Additional taxes 526 2,920 526 2,920
Total Continuing Operations 44,852 (30,479) 33,628 (54,346)
Discontinued Operations 56,781 26,385 - -
Total income tax 101,633 (4,094) 33,628 (54,346)
According to tax legislation, the income tax rate for legal entities residing in Greece, is 29%, while at the same time tax
prepayment stands to 100
Tax returns for the companies residing in Greece are filed annually but profits or losses declared for tax purposes remain
provisional until such time, as the tax authorities audit the returns and the records of the company and a final assessment
is issued. The Group establishes a provision, if deemed necessary, on a case by case basis and per company, against an
event of additional taxes being imposed by the tax authorities.
Based on the applicable Income Tax Code, since the fiscal year 2011, the certified auditors issue an "Annual Tax Compliance
Report" after conducting a tax audit at the same time with the financial audit. The tax audit is conducted on particular
tax areas, specified by an audit program, according to the provisions of the tax law. Audit matters which are not covered
by the above mentioned decision are dealt in accordance to the ISAE 3000 "Assurance Engagements other than Audits or
Reviews of Historical Financial Information".
The Group's companies that are subject to the above mentioned provisions are: PPC S.A., IPTO S.A.,
HEDNO S.A., and PPC Renewables S.A. For the year 2015 the tax auditors of the Parent Company issued a tax certificate
"without qualification", while the corresponding tax audit for 2016 is in progress.
Moreover, effective from January 2014, the appropriate tax authorities (Centre for Auditing Big Companies) have
initiated a tax audit of the Parent Company's fiscal years 2009, 2010 and 2011, which is still in progress.
Similarly, the Centre for Auditing Big Companies conducts a tax audit for the subsidiary IPTO S.A. for the fiscal years
2009 and 2010, while there is in progress by the tax authorities a partial tax audit for 2014 after the filling of a tax
refund request. This partial tax audit is expected to be completed soon with a tax refund amounting to Euro 18 mil.
Tax unaudited years for the Parent Company and the subsidiaries of the Group:
Company Country Unaudited years since
PPC (Parent Company) Greece 2009
PPC Renewables S.A. Greece 2012
HEDNO S.A. Greece 2012
IPTO S.A Greece 2009
Arkadikos Ilios Ena S.A. Greece 2007
Arkadikos Ilios Dio S.A. Greece 2007
Iliako Velos Ena S.A. Greece 2007
Iliako Velos Dio S.A. Greece 2007
SOLARLAB S.A. Greece 2007
Iliaka Parka Ditikis Makedonias Ena S.A. Greece 2007
Iliaka Parka Ditikis Makedonias Dio S.A. Greece 2007
PPC FINANCE PLC United Kingdom 2009
PPC BULGARIA JSCo Bulgaria 2014
PPC Elektrik Tedarik ve Ticaret A.S. Turkey 2014
PHOIBE ENERGIAKH S.A. Greece 2007
13. INCOME TAXES (CURRENT AND DEFERRED) - CONTINUED
For the unaudited tax years the Group establishes a provision on the basis of the findings of prior tax audits.
An analysis and numerical reconciliation between tax expense and the product of accounting profit multiplied by the nominal
applicable tax rate is set out below:
Group Company
2016 2015 2016 2015
Profit / Loss before tax 226,444 (106,610) 200,044 (206,857)
Nominal tax rate 29% 29% 29% 29%
Income tax calculated at nominal tax rate 65,669 (42,972) 58,013 (59,989)
Provision for additional taxes 526 2,920 526 2,920
Non deductible expenses 24,244 12,083 19,659 7,845
Non taxable income (33,792) - (33,137) (10,146)
Non taxable expense - - - -
Items for which no deferred taxeshave been recognized - (31,367) (11,433) (21,095)
Impactfromtaxratechange - 20,997 - 26,119
Investments in subsidiaries - 7,860 - -
Income tax 44,852 (30,479) 33,628 (54,346)
19.81% 20.57% 16.81% 26.27%
The movement of the deferred income tax account is as follows:
Group Company
2016 2015 2016 2015
At January 1 2016 (717,255) (794,739) (605,010) (723,268)
Profit and loss account (debit)/credit 28,047 149,034 28,754 174,390
(Debit) /Credit directly in other total income - (71,550) - (56,132)
Discontinued Operations 129,113 - 254,600 -
At December 31 2016 (560,095) (717,255) (321,656) (605,010)
Deferred income tax receivables and liabilities are disclosed in the accompanying balance sheets as follows:
Group Company
2016 2015 2016 2015
Deferred income tax
- Asset 1,058,343 980,215 1,020,982 894,174
- Liability (1,618,438) (1,697,470) (1,342,638) (1,499,184)
Total (560,095) (717,255) (321,656) (605,010)
Group Company
2016 2015 2016 2015
Deferred tax receivables
- Materials and spare parts 40,902 46,579 37,566 37,324
- Trade receivables 707,077 602,464 687,387 568,151
- Provision for risks and accruals 46,621 62,562 31,352 27,804
- Subsidiesand customers' contributions 174,757 157,831 174,687 148,128
- Provision for CO2 - (688) - (688)
- Fixed assets 77,848 79,775 78,731 79,415
- Available for sale 4,914 - 3,947 -
- Derivatives - 199 - 199
- Other 6,224 31,493 7,312 33,841
Deferred tax receivables 1,058343 980,215 1,020,982 894,174
Deferred tax liabilities
- Long-term debt fees and expenses (33,687) (34,990) (33,769) (35,072)
- Depreciation and revaluation of assets (1,330,085) (1,407,778) (1,308,803) (1,209,410)
- Foreign exchange (gains) (66) (102) (66) (102)
- - Investment in IPTO S.A. (254,600) (254,600) - (254,600)
Deferred tax liability (1,618,438) (1,697,470) (1,342,638) (1,499,184)
Deferred Tax Liability net (560,095) (717,255) (321,656) (605,010)
13. INCOME TAXES (CURRENT AND DEFERRED) - CONTINUED
Deferred income tax charged in the statement of income is attributable to the following items:
Group Company
2016 2015 2016 2015
- Materials and spare parts 364 7,236 242 6,034
- Trade receivables 118,911 239,140 119,236 236,483
- Provision for risks and accruals 3,782 23,371 3,548 11,852
- Subsidies 26,559 50,945 26,559 46,816
- Fixed assets (1,927) 5,776 (684) 5,776
- Derivatives (199) (199) 104
- Long-term debt fees and expenses 1,303 (7,291) 1,303 (7,339)
- Subsidiaries and associates - (26,338) - (18,478)
- Depreciation (99,393) (165,998) (99,393) (139,111)
- Foreign exchange (gains) 36 50 36 50
- Provision for CO2 688 (1,354) 688 (1,354)
- Available for sale 4,914 - 3,947 -
- Tax losses - (13,279) - (3,573)
- Other (26,991) 36,672 (26,529) 37,130
Deferred tax charge 28,047 149,034 28,754 174,390
As at 31.12.2013, the Parent Company recognized a deferred tax liability on the difference between the accounting and tax
basis of the value of its investment in the subsidiary IPTO S.A. More precisely, the value of the investment in PPC's tax
books amounts to Euro 38,444, while the respective value in the accounting books amounts to Euro 916,376. By applying on
the difference of Euro 877,932 the applicable for 2013 income tax rate of 26%, a differed tax liability of Euro 228,262
was derived. On September 30th 2015,due to the income tax rate change from 26% to 29%, the deferred tax liability was
adjusted to Euro 254,600, while the difference of Euro 26,338 was charged to the current income statement.
Part of this surplus value arising in the tax books, of an amount of Euro 589,615, originates from the reserve of Law
2941/2001 relating to the spanned off Transmission segment which was transferred to IPTO S.A. in its capacity as a sole
successor. In accordance to paragraph 3, case (6), of article 98 of Law 4001/2011, all tax or accounting treatment which
was performed by PPC relating to the segment and which relates to future benefits or liabilities, is transferred to IPTO
S.A.
Consequently, upon the disposal of IPTO S.A. and the payment by the Parent Company of the respective income tax derived
from the difference between the sale consideration and the tax book value, the reserve of Law 2941/2001 (Euro 589,615) is
considered as taxed, and thus IPTO S.A. in its capacity as a sole successor of PPC S.A., is eligible to transfer this
reserve to retained earnings and thus making it available for distribution without payment of any additional income taxes.
14. tangible ASSETS
GROUP
Net book value Land Mines Lakes Buildings and Technical Works Machinery Transportation Assets Fixtures and Furniture Construction in progress Total
December 31, 2014 592,866 383,363 24,010 2,074,490 8,927,748 56,750 70,188 1,560,123 13,689,537
- Additions - 2,546 - 510 151,525 2,109 7,466 591,998 756,154
- Depreciation expense - (46,691) (761) (107,991) (641,222) (7,696) (11,478) - (815,839)
- Disposals - (354) - (605) (18,335) (203) (48) - (19,545)
- Transfers from CIP 2,237 12,748 - 26,444 87,301 39 2,132 (146,045) (15,144)
- Transfers 6,462 10,279 - (33) (73) (2) 8 (16,641) -
- Other movements (489) (43) - 26 (163) 349 83 (4,680) (4,917)
December 31, 2015 601,076 361,848 23,249 1,992,841 8,506,781 51,346 68,351 1,984,755 13,590,247
- Discontinuing Operations (189,832) - - (87,841) (955,985) (4,542) (7,853) (351,645) (1,597,698)
- Additions - 2,962 - 42 148,925 1,758 8,907 572,750 735,343
- Depreciation expense - (45,982) (756) (101,223) (574,223) (6,601) (9,773) - (738,558)
- Disposals - - - (61) (10,572) (421) (156) - (11,210)
- Transfers from CIP 55 43,777 800 48,555 575,683 4 381 (671,173) (1,917)
- Transfers - - - (191) 191 - - - -
- Other movements (429) (437) 431 4 342 (8) 30 (39,302) (39,369)
December 31, 2016 410,870 362,168 23,724 1,852,126 7,691,142 41,537 59,887 1,495,385 11,936,838
At December 31, 2014
Gross carrying amount 592,866 852,753 38,174 2,096,048 9,032,326 57,111 122,231 1,560,123 14,351,631
Accumulated depreciation - (469,390) (14,164) (21,558) (104,578) (361) (52,043) - (662,094)
Net carrying amount 592,866 383,363 24,010 2,074,490 8,927,748 56,750 70,188 1,560,123 13,689,537
At December 31, 2015
Gross carrying amount 601,076 877,929 38,174 2,122,390 9,252,581 59,403 131,872 1,984,755 15,068,180
Accumulated depreciation - (516,081) (14,925) (129,549) (745,800) (8,057) (63,521) - (1,477,933)
Net carrying amount 601,076 361,848 23,249 1,992,841 8,506,781 51,346 68,351 1,984,755 13,590,247
At December 31, 2016
Gross carrying amount 410,870 924,231 39,405 2,082,898 9,011,164 56,194 133,181 1,495,385 14,153,329
Accumulated depreciation - (562,063) (15,681) (230,772) (1,320,023) (14,658) (73,294) - (2,216,491)
Net carrying amount 410,870 362,168 23,724 1,852,126 7,691,142 41,537 59,887 1,495,385 11,936,838
14. TANGIBLE ASSETS (CONTINUED)
PARENT COMPANY
Net book value Land Mines Lakes Buildings and Technical Works Machinery Transportation Assets Fixtures and Furniture Construction in progress Total
December 31, 2014 396,513 383,363 24,008 1,954,377 7,839,168 25,908 49,360 1,229,758 11,902,455
- Additions - 2,546 - 477 150,997 1,937 5,959 457,533 619,449
- Depreciation expense - (46,691) (761) (101,924) (574,206) (4,083) (7,193) - (734,858)
- Disposals - (354) - (33) (17,985) (70) (40) - (18,482)
- Transfers from CIP 1,987 12,748 - 19,193 72,695 - 1,483 (120,972) (12,866)
- Transfers 6,462 10,279 - (33) (73) (2) 8 (16,641) -
- Other movements - (43) - (1) - - - (4,240) (4,284)
December 31, 2015 404,962 361,848 23,247 1,872,056 7,470,596 23,690 49,577 1,545,438 11,751,414
- Additions - 2,962 - 38 148,924 798 7,715 581,090 741,527
- Depreciation expense - (45,982) (756) (99,484) (569,000) (3,619) (7,516) - (726,357)
- Disposals - - - (11) (10,572) (400) (90) - (11,073)
- Transfers from CIP 55 43,777 800 47,668 573,567 - 384 (667,573) (1,322)
- Transfers - - - - - - - - -
- Other movements - (480) - - - - - (39,302) (39,782)
December 31, 2016 405,017 362,125 23,291 1,820,267 7,613,515 20,469 50,070 1,419,653 11,714,407
At December 31, 2014
Gross carrying amount 396,513 852,753 38,174 1,974,891 7,943,292 25,908 100,315 1,229,758 12,561,604
Accumulated depreciation - (469,390) (14,166) (20,514) (104,124) - (50,955) - (659,149)
Net carrying amount 396,513 383,363 24,008 1,954,377 7,839,168 25,908 49,360 1,229,758 11,902,455
At December 31, 2015
Gross carrying amount 404,962 877,929 38,174 1,994,494 8,148,926 27,773 107,725 1,545,438 13,145,421
Accumulated depreciation - (516,081) (14,927) (122,438) (678,330) (4,083) (58,148) - (1,394,007)
Net carrying amount 404,962 361,848 23,247 1,872,056 7,470,596 23,690 49,577 1,545,438 11,751,414
At December 31, 2016
Gross carrying amount 405,017 924,188 38,974 2,042,187 8,860,845 28,171 115,734 1,419,653 13,834,769
Accumulated depreciation - (562,063) (15,683) (221,920) (1,247,330) (7,702) (65,664) - (2,120,362)
Net carrying amount 405,017 362,125 23,291 1,820,267 7,613,515 20,469 50,070 1,419,653 11,714,407
14. TANGIBLE ASSETS (CONTINUED)
Revaluation of Fixed Assets:
Within 2014, the Group proceeded with the revaluation of its operating fixed assets as of December 31, 2014. The
revaluation was carried out by an independent firm of appraisers, according to IAS 16. The results of the above appraisal
which excluded lakes, land for the extraction of lignite and construction in progress, were recorded in the Company's books
on December 31, 2014. The previous revaluation took place on December 31, 2009.
The revalued amounts, from the appraisers' work, compared to the Net Book Value of the fixed assets, resulted to a net
surplus for the Group, amounting to approximately Euro 672.4 mil., (Parent Company 627.5 mil.), which was credited directly
in Revaluation Surplus in Comprehensive Income (Euro 848 mil. and Euro 818.6 mil. net of Deferred Taxes for the Group and
the Parent Company, respectively). Additionally, an amount of Euro 44.8 mil.which was not offset by previous years'
Revaluation Surplus was charged in the Statement of Income for the year ended at December 31, 2014 (Parent Company : 21.7
mil.).
Encumbrances on tangible assets: Tangible assets are held free from encumbrances and any claims against the Group's
tangible assets are deemed as not substantial.
15. INTANGIBLE ASSETS, NET
Group
31.12.2016 31.12.2015
Software Emission Allowances Total Software Emission Allowances Total
Net book value, January 1 20,044 58,514 78,558 10,954 58,992 69,946
Discontinuing Operations (128) - (128) - - -
Additions 1,669 161,842 163,511 13,066 250,549 263,615
Consumptions (Note 8) - (178,138) (178,138) - (251,027) (251,027)
Depreciation (Note 7) (6,356) - (6,356) (5,377) - (5,377)
Disposals (1) - (1) (29) - (29)
Transfers 591 - 591 1,430 - 1,430
December 31 15,819 42,218 58,037 20,044 58,514 78,558
Company
31.12.2016 31.12.2015
Software Emission Allowances Total Software Emission Allowances Total
Net book value, January 1 15,816 58,514 74,330 6,773 58,992 65,765
Additions 1,583 161,842 163,425 13,006 250,549 263,555
Consumptions (Note 8) - (178,138) (178,138) - (251,027) (251,027)
Depreciation (Note 7) (4,649) - (4,649) (3,934) - (3,934)
Disposals (1) - (1) (29) - (29)
Transfers - - - - - -
December 31 12,749 42,218 54,967 15,816 58,514 74,330
15. INTANGIBLE ASSETS, NET (CONTINUED)
The net carrying amount of software is further analyzed as follows:
Group Company
At December 31, 2014
Gross carrying amount 61,310 49,501
Accumulated amortization (50,356) (42,728)
Net carrying amount 10,954 6,773
At December 31, 2015
Gross carrying
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