According to the expository instruction of the Committee for Accounting Standardisation and Audit (CASA) with number 118AP/23.3.2006 and according to the announcement of the Hellenic Capital Market Commission made on 24/3/2006 relating to the annual financial statements for the financial year ending 31/12/2005, the Company announces the following:
The Company in the current period proceeded to a change in accounting policy relating to asset valuation. The investments in subsidiaries, in the Parent's separate financial statements, are valued at fair value, whereas in the preparation of the separate financial statements of the preceding financial year, investments in subsidiaries had been valued at cost.
In specific, in the preparation of the separate financial statements for the financial year 2005, the investments of the Parent Company in subsidiaries were valued at cost. According to the Company's new accounting policy, which conformed to IAS 27 "Consolidated and Separate Financial Statements", the investments in subsidiaries, every quarter, are valued at fair value. Gains or losses arising from revaluation of investments in subsidiaries, which are recognized in a similar manner to that of Financial Assets Available for Sale and according to IAS 39 par. 55.B, are recorded directly in the revaluation reserve account in Equity until the investments in question are sold or considered impaired in which cases gains or losses are recognised in the Income Statement.
The Company applied the relevant provisions of IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" in dealing with the aforementioned change in accounting policy regarding asset valuation. The new accounting policy is applied in retrospect from January 1st 2005. The positive differences arising from revaluation were recognized directly in equity in the Parent's Balance Sheet and in especial in the revaluation reserve account, after deducting the proportionate deferred tax, as a result increasing the Parent's equity for 31.12.2004 by euro 28.719 thous., equity for 31.03.2005 by euro 28.719 thous., equity for 30.6.2005 by euro 54.640 thous., equity for 30.9.2005 by euro 54.640 thous. and equity for 31.12.2005 by euro 85.306 thous.
The aforementioned changes are mentioned in note 2.2.1 in the Company's interim financial statements (full notes) for the period ending 31.03.2006.