ANNUAL REPORT 2021

65 13 (l) Cash and cash equivalents Cash and cash equivalents comprise cash in hand, cash in bank accounts, placements and other highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. (m) Impairment of assets The Group assesses at each reporting date the carrying amounts of its non - current tangible and intangible assets to determine whether there is any indication that those assets have suffered impairment. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to determine the recoverable amount of an individual asset, the Group determines the recoverable amount of the cash - generating unit to which the asset belongs. The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre - tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. If the recoverable amount of an asset (or cash - generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash - generating unit) isreducedtoits recoverableamount. An impairment loss isrecognised immediately inthestatementofcomprehensiveincome (“other operating expenses”). Where an impairment loss subsequently reverses, the carrying amount of the asset (cash - generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (cash - generating unit) in prior years. A reversal of an impairment loss is recognised directly in the statement of comprehensive income. The recoverable amount of the Group’s receivables is calculated as the present value of expected future cash flows, discounted by the original effective interest rate inherent in the asset. Short - term receivables are not discounted. The recoverable amount of other assets isthegreater oftheir net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre - tax discount rate that reflects the current market value of the time value of money and the risks specific to the asset. For assets not generating sufficient independent cash flows, the realisable value is determined for the cash - generating unit to which the assets pertain. In accordance with IFRS 9, the Group implemented a simplified model for the impairment of trade receivables, under which the Group creates provisions for trade receivables without a significant element of financing in the amount of lifetime expected losses. (n) Dividends Dividends paid are recognised as a liability in the period in which they are declared. (o) Interest-bearing loans and borrowings Interest - bearing loans and borrowings are initially recognised at fair value and subsequently at amortised cost using the effective interest rate method. Any difference between cost and redemption value of the borrowing on an effective interest rate basis is recognised in the statement of comprehensive income over the period of the borrowings on a straight - line basis. (p) Provision for employee benefits The Group operates unfunded defined long - term benefit programs - the defined benefit plan comprising one - off retirement benefits, long service and jubilee benefits. According to IAS 19 “Employee benefits”, the employee benefits costs are assessed using the projected unit credit method. Under this method, the cost of providing pensions is charged to the statement of comprehensive income so as to spread the regular cost over the service lives of employees. The liabilities related to the benefits are measured at the present value of the estimated future cash outflows discounted by market yields on government bonds, which have maturity periods approximating the maturity periods of the related liability. All actuarial gains and losses are recognised in the statement of comprehensive income. Past service cost is recognised when incurred up to the amount of benefits paid, and the remaining amount is amortised on a straight - line basis during the average period until themoment of the settlement of benefits. (q) Social security and pension schemes The Group is required to make contributions to various obligatory Government insurance schemes, together with contributions by employees. The cost of social security payments is charged to the statement of comprehensive income in the same period as the related salary cost. The Group contributes to a supplementary pension plan administered by a private pension fund, based on the employment period of the employee. No additional liabilities arise to the Group from the payment of pensions to employees in the future. (r) Provisions Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefitswill berequiredtosettlethe obligation,andareliableestimate oftheamount ofthe obligationcan bemade. A provision is measured on the basis of the best estimate made by themanagement of the cost of the liability settlement as at the reporting date. If the effect is material, provisionsare determined by discounting the expectedfuture cashflows by a pre - tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. (s) Accruals TheGroupmakesanestimate of expensesand liabilitiesthat have notbeen invoicedatthereporting date.These expensesand liabilitiesare recorded in the accounting records on an accrual basis and recognised in the financial statements in the period to which they relate. (t) Trade and other payables Trade and other payables are initially measured at fair value and subsequently at amortised cost using the effective interest ratemethod. (u) Revenue recognition (i) Goods sold and services rendered In relation to the sale of goods and merchandise, revenues are recognised when all significant risks and rewards of ownership have been transferred to the buyer, and no significant uncertainties remain regarding the collection of consideration, associated costs and possible claims or returning of goods. Revenues are stated net of taxes and discounts, after eliminating sales within the Group. No revenue is recognised if there are significant uncertainties regarding the settlement of the consideration due, the associated costs or the possible return of goods, or regarding the continuous involvement of the Group in the management of the goods. Revenues from the provision of services are recognised when the relevant services are rendered in proportion to the stage of their completion at the reporting date. (ii) Government grants Grants are not recognised unless there is a reasonable assurance that the Group will meet the grant - related conditions. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)