The effective interest rate which approximates the nominal interest rate

company has impaired its participation in Hellas On Line at 0,40 EUR, in accordance with the price
in Athens Stock Exchange as of 31/12/2013.The impairment affected Fair Value Reserve by
transferring an amount of 9.487.037,85 EUR in the income statement.
19. Borrowings
Amounts in Euro 31/12/2014 31/12/2013
Non-current borrowings
Bank borrowings 8.800.000,00 190.000,00
Obligations under finance leases 0,00 0,00
Total non-current borrowings 8.800.000,00 190.000,00
Current borrowings
Bank overdrafts 0,00 0,00
Bank borrowings 41.423.802,68 53.929.445,63
Obligations under finance leases 0,00 5.764,01
Total current borrowings 41.423.802,68 53.935.209,64
Total borrowings 50.223.802,68 54.125.209,64
The effective interest rate which approximates the nominal interest rate applicable to the above
borrowings varies from 5,00% to 7,90% depending on the specific terms and conditions of the
relevant loan agreements. Average effective rate was 6,61%.
The Company has approved credit lines for working capital financing purposes and issuances of
letters of guarantees in excess of Euro 81 million.
All above lines are reviewed on an annual basis and are guaranteed by INTRACOM SA Holdings.
The loans of the Group are analysed in the following currencies:
2014 2013
Euro (EUR) 49.000.008,76 51.579.702,27
US Dollar (USD) 1.223.793,92 2.545.507,37
Total 50.223.802,68 54.125.209,64
The contractual undiscounted cash flows of the borrowings are as follows:
Amounts in Euro 31/12/2014 31/12/2013
Not later than 1 year 41.423.802,68 53.935.209,64
Between 1 and 2 years 8.800.000,00 190.000,00
50.223.802,68 54.125.209,64
INTRASOFT INTERNATIONAL
Consolidated Financial Statements in accordance with IFRS
31 December 2014
Page 72 of 89
Finance leases
Amounts in Euro 31/12/2014 31/12/2013
Finance lease liabilities – minimum lease payments
Not later than 1 year 0,00 5.853,78
Later than 1 year and not later than 5 years 0,00 0,00
Total 0,00 5.853,78
Less: Future finance charges on finance leases 0,00 (89,77)
Present Value of Finance Lease Liabilities 0,00 5.764,01
The present value of finance lease liabilities may be analyzed as follows:
Current: Not later than one year 0,00 5.764,01
Later than 1 year and not later than 5 years 0,00 0,00
Total 0,00 5.764,01
20. Retirement benefit obligations
According to Greek Labor Law, employees are entitled to indemnity on dismissal and retirement,
the amount of which varies depending on the years of services, salary level and the way the
employee leaves his or her employment (dismissal or retirement). Employees that resign or are
dismissed for legally valid reasons are not indemnified. The indemnity payable on retirements is
40% of the amount that would have been payable to the same employee on dismissal on the same
day (retirement date). In Greece, based on customary practice, these programs are not funded.
The Group charges to the income statement the expense attributable to the service provided by
employees in the year, with a corresponding increase in the provision for staff retirement
indemnities. Any payments made to retiring employees are set against the related provision. An
independent actuary (Manolis Valavanis – Member of the Hellenic Actuarial Society and of the
American Academy of Actuaries) calculated the Group’s liability for retirement indemnities.
The movement of the net liability as presented in the balance sheet and the basic assumptions
used in the actuarial study as at 31 December 2014 and 2013 are as follows:
INTRASOFT INTERNATIONAL
Consolidated Financial Statements in accordance with IFRS
31 December 2014
Page 73 of 89
2014 2013
Balance sheet obligations for:
Pension benefits 3.160.247,91 2.527.031,18
Total 3.160.247,91 2.527.031,18
Income statement charge for (Note30):
Pension benefits 158.475,93 (58.407,13)
Total 158.475,93 (58.407,13)
Actuarial (gains)/losses (OCI)
Pension benefits (474.740,80) 52.719,06
Total (474.740,80) 52.719,06
The amounts recognized in the Balance Sheet are as follows:
2014 2013
Present value of funded obligations 3.160.247,91 2.512.385,00
3.160.247,91 2.512.385,00
Present value of unfunded obligations 0,00 14.646,18
0,00 14.646,18
Liability in the Balance Sheet 3.160.247,91 2.527.031,18
The amounts recognized in the income statement are as follows:
2014 2013
Current service cost 158.417,84 222.608,26
Interest cost 58,09 73.412,56
Net actuarial (gains) / losses recognized in the period 0,00 (354.427,95)
Past service cost 0,00 0,00
Total included in employee benefit expense (Note 30) 158.475,93 (58.407,13)
Total Charge allocated as follows:
2014 2013
Cost of sales 158.341,46 (60.937,03)
Selling and marketing costs (1.252,24) 997,71
Administrative expenses 1.386,71 1.532,19
Total 158.475,93 (58.407,13)
Movement in the liability recognized in the balance sheet
2014 2013
Balance at the beginning of period 2.527.031,18 2.682.515,61
Total expense included in employee benefit expense 158.475,93 (58.407,13)
Disposal of subsidiaries 0,00 (25.835,00)
Actuarial (gain)/loss from change in financial assumptions 474.740,80 (38.645,12)
Experience (gains)/losses 0,00 (32.596,85)
Balance at the end of period 3.160.247,91 2.527.031,18
INTRASOFT INTERNATIONAL
Consolidated Financial Statements in accordance with IFRS
31 December 2014
Page 74 of 89
The Principle Actuarial Assumptions Used for Accounting Purposes are:
2014 2013
Discount Rate 2,20% 3,00%
Future Salary Increases 2,50% 3,00%
Future pension increases 2,00% 4,00%
Sensitivity analysis
The use of a discount rate plus 50BP will lead to an actuarial liability lower by 9% and the
opposite, a discount rate minus 50BP will lead to an actuarial liability higher by 10%
The use of a salary rate plus 50BP will lead to an actuarial liability higher by 10% and the oppsite,
a salary rate minus 50BP will lead to an actuarial liability lower by 9%.
Projected
Benefit
Obligation
%
Discount rate plus 50BP 2.736.111 -9%
Discount rate minus 50BP 3.284.879 10%
Salary rate plus 50BP 3.282.506 10%
Salary rate minus 50BP 2.735.629 -9%
21. Grants
Amounts in Euro 31/12/2014 31/12/2013
Balance at the beginning of period 9.474,93 0,00
Additions 0,00 9.474,93
Transfer to the profit or loss (amortisation) (9.474,93) 0,00
Balance at the end of period 0,00 9.474,93
The grants relate to subsidiary company Global Net Solution SA for the expansion of its
telecommunications network.
22. Derivative financial instruments
Not applicable
INTRASOFT INTERNATIONAL
Consolidated Financial Statements in accordance with IFRS
31 December 2014
Page 75 of 89
23. Provisions
Long-term provisions are analyzed as follows:
Tax
liabilities Other Total
Balance at 1 January 2013 504.037,67 8.377,96 512.415,63
Utilized during the year 0,00 (196.778,08) (196.778,08)
Additional provision for the period 0,00 518.130,60 518.130,60
Balance at 31 December 2013 504.037,67 329.740,38 833.768,15
Utilized during the year 0,00 (125.582,01) (125.582,01)
Additional provision for the period 0,00 0,00 0,00
Balance at 31 December 2014 504.037,67 204.158,37 708.186,14
Short-term Provisions are analyzed as follows:
Legal
claims
Staff
related
Project
losses
Tax
liabilities Other Total
Balance at 1 January 2013 278.067,71 2.028.319,33 445.364,88 0,00 101.332,88 2.853.084,80
Additional provision for the period 0,00 1.917.914,70 518.205,90 0,00 78.752,57 2.514.873,17
Unused amounts reversed 0,00 (31.335,35) 0,00 0,00 0,00 (31.335,35)
Exchange differences 0,00 0,00 0,00 0,00 0,00 0,00
Utilized during the year (278.067,71) (1.760.472,54) (749.771,40) 0,00 (56.607,47) (2.844.919,12)
Balance at 31 December 2013 0,00 2.154.426,14 213.799,38 0,00 123.477,98 2.491.703,50
Additional provision for the period 0,00 1.186.066,13 470.329,95 0,00 24.241,49 1.680.637,57
Unused amounts reversed 0,00 (134.284,65) 0,00 0,00 (26494,86) (160.779,51)
Exchange differences 0,00 0,00 0,00 0,00 0,00 0,00
Utilized during the year 0,00 (909.915,93) (582.997,77) 0,00 0,00 (1.492.913,7)
Balance at 31 December 2014 0,00 2.296.291,69 101.131,56 0,00 121.224,61 2.518.647,86
The staff related provisions comprise short term accrued employee benefit like provisions for leave
pay, provision for untaken vacation days and provisions for bonus.
INTRASOFT INTERNATIONAL
Consolidated Financial Statements in accordance with IFRS
31 December 2014effective communication
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