Page 184 - enav_27052016

ENAV S.p.A. Financial Statement

calculations as per IAS 19.With defined contribution plans, the contribution expenses
are charged to the Income Statement when they are incurred based on the relative
nominal value.
The defined benefit plan consists of the Italian employees’ termination indemnity
scheme (Trattamento di Fine Rapporto TFR) due to employees pursuant to Article
2120 of the Italian Civil Code, accrued through 31 December 2006; in accordance
with Law No. 296 of 27 December 2006, as from 1 January 2007, the amounts
accruing after that date are transferred to supplementary pension schemes or the
treasury fund managed by the Italian national social security organization, INPS,
on the basis of the implicit and explicit decisions taken by the workers. The defined
benefit liability is projected into the future using the Projected Unit Credit Method,
to calculate the probable amount that will become payable at the time that
employment is terminated, and is then discounted to take into account the time
value of money before payment is effectively made.The measurement of the liability
recorded in the balance sheet is based on conclusions reached by external actuaries
to the Group.The calculation takes into account the TFR matured passed services and
is based on actuarial assumptions referring mainly to: demographic inputs (such as
employee rotation and mortality) and financial inputs (such as the inflation rate and
the discount rates coherent with the expecting timing of the payment obligations).
Accordingly, the liability recognized in the financial statements accordingly coincides
with the actuarial valuation and any actuarial gains or losses arising from the
calculation are recognized in other comprehensive income in the period in which
they arise, taking into account the deferred tax effect.
The defined contribution plans include the Termination Indemnity payable to
employees pursuant to Article. 2120 of the Italian Civil Code, limited to the TFR
matured as from 1 January 2007, and paid as per regulations to a complementary
pension fund or the relevant Treasury Fund established with INPS. These plans are
managed by external fund managers, in respect of whom the Company has no
obligations, other than to pay the said contributions, which are charged to the
Income Statement when they are incurred based on the relevant nominal value.

Provisions for risks and charges

Provisions for risks and charges are recognized for losses and charges of a specific
nature whose existence is certain or probable, but where the amount and/or date of
occurrence cannot be determined. Provisions are only recognized when the company
has a present obligation, legal or constructive, arising from a past event, when it is
probable that a future outflow resources presenting benefits will be required to settle
the obligation and when it is possible to make a reliable estimate of that amount.
Where the financial effect of the time value of money is material and the dates
of settling the obligations can be reliably estimated, the provisions are discounted
using a pre-tax rate that reflects, where suitable, the market’s current assessment
of the time value of money and, if applicable, the risks specific to the liability. The
increase in the carrying amount of a provision as the result of the passage of time is
recognized as a financial expense.

ENAV - Annual financial report 2015 183