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ENAV S.p.A. Financial Statement

Intangible assets

Intangible assets consist of identifiable non-monetary assets without physical
substance, which can be controlled and generate future economic benefits. These
assets are recognised at the cost of purchase or production, including any directly
attributable costs required to make the asset available for use, net of any accrued
amortisations (with the exception of intangible assets with an indefinite useful life)
and any impairment losses. Internally generated intangible assets are not capitalised
and are recorded in the Income Statement during the year they are incurred.
Amortisation begins at the time the asset is available and is systematically allocated
in relation to its possible residual life.
The useful life of an intangible asset may be finite or indefinite.
Intangible assets with finite useful lives are amortized on a straight-line basis over
their estimated useful lives and are tested for impairment whenever there are
indications that they may be impaired. The residual useful life of an asset is reviewed
at each year end or more frequently if necessary. Changes to the expected useful
lives of assets or the way in which the future economic benefits associated with the
asset are consumed by the Company are recognized by changing the amortization
period and/or method and are treated as changes in the accounting estimates.
Gains or losses resulting from the disposal on an intangible asset are measured as
the difference between the net disposal proceeds and the carrying amount of the
asset, and are recorded in profit or loss at the time of disposal.
Intangible assets with an indefinite useful life are not subject to systematic
amortisation, but rather to an annual evaluation aimed at identifying any impairment
losses (impairment testing), both at individual level and at the level of the cash-
generating unit. Any change from an indefinite to a finite useful life is applied on a
prospective basis.
The Company does not have any intangible assets with an indefinite useful life.
In particular, the following main intangible assets are identifiable: patents and
intellectual property rights represented by licenses and software and other intangible
assets having an estimated useful life of three years.

Inventories

Inventories, comprising mainly spare parts relating to facilities and equipment
for controlling air traffic, are measured at the average weighted cost. If items can
no longer be used because they are obsolete, they are written down through the
allowance for inventory losses as a direct deduction from the item.

ENAV - Annual financial report 2015 179