Page 8 - Financial Statements 2014, 2015 & 2016

Airport Groundhandling &
Financial Statements Equipment Leasing Services N.V.
5. Accounting policies and general notes Financial statements 2014

Tangible fixed assets
Land and buildings, plant and equipment, other fixed operating assets, prepayments on
tangible fixed assets and tangible fixed assets in production are stated at cost of purchase or
cost of conversion, less accumulated depreciation.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful
lives of each item of the tangible fixed assets. Land, tangible fixed assets in production and
prepayments on tangible fixed assets are not depreciated. Currently the Company does not
hold any real estate as a consequence of which the depreciation rates are not included in this
note.

Impairment or disposal of fixed assets
The company states fixed assets in accordance with accounting principles in the Netherlands.
Pursuant to these principles, assets with a long life should be reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any such indication exists
the assets’ recoverable amount is estimated. The recoverable amount is calculated as the
present value of estimated future cash flows, discounted at the effective interest rate.

If the book value of an asset exceeds the recoverable amount, an impairment is charged to the
result equal to the difference between the carrying amount and the recoverable amount.
Assets for sale are stated at the carrying amount or lower market value, less selling costs.

Trade receivables and other receivables
Trade receivables and other receivables are recognized initially at the transaction price. They
are subsequently measured at amortized cost using the effective interest method, less
provision for impairment. A provision for impairment of trade receivables is established when
there is objective evidence that the group will not be able to collect all amounts due according
to the original terms of the receivables.

Trade payables
Trade payables are recognized initially at the transaction price and subsequently measured at
amortized cost using the effective interest method.

Revenue accounting
Revenue from the sale of goods is measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is
recognised when the significant risks and rewards of ownership have been transferred to the
buyer, recovery of consideration is probable, the associated costs and possible return of goods
can be estimated reliably, and there is no continuing management involvement with the
goods.

Corporate income tax
Corporate income tax expense comprises current tax. Corporate income tax expense is
recognised in profit or loss except to the extent that it relates to items recognised directly in
equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in
respect of previous years.

Cash flow statement
The cash flow statement has been prepared using the indirect method. Cash flows in foreign
currency are translated into AWG at the average weighted exchange rates at the dates of the
transactions.

7