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ENAV S.p.A. Financial Statement

• the fund has the nature of a grant used for off-setting purposes;
• European regulations on charge determinations establish that a member state

may reduce charges by means of subsidies/grants that enable the operator to
offset losses;
• resolutions of shareholders’ meetings to create or make changes to the provision
are adopted on the basis of EU Regulation No. 1794/06;
• the provision is recognised by the member country, which in this case does not act
as a shareholder but as a party carrying out economic policy within the country..

Revenues

Revenues are recorded at fair value of the amount received or receivable, net of
discounts and rebates, and are recognised on an accruals basis, to the extent that it
is probable that the Company will receive the economic benefits, and the relevant
amount can be reliably determined.

Balance

At an international level, up until 31 December 2011, Eurocontrol member countries
used a cost recovery en-route charge system. This system is based on the concept
that revenues should be proportional to the costs incurred for en-route air navigation
control services. By virtue of this principle, charges were calculated on the basis
of the forecast amount that would lead to an economic break-even. At the end
of the year, if revenues exceeded the costs incurred this would lead to a negative
balance (over-recovery), giving rise to an adjustment to profit or loss for the extra
revenues and the recognition of a “payback” liability. If on the other hand, if revenues
were lower than the costs incurred, an increase in revenues would be recognised
together with a “re-charge” receivable for a positive balance (under recovery). In
accordance with the cost recovery principle, the “balance amount” was the result of
the correcting mechanism used to adjust revenues to the actual amount of the costs
incurred and subject charge billing. The effects of this mechanism were included for
charge purposes starting from the second year following that of the reference year
and accounted for in profit or loss with a sign opposite to that of their recognition.
As from 1 January 2015, this cost recovery mechanism is applied only to the third
category terminal charge.
Starting in 2012, and as the result of the introduction of the en-route air navigation
services system, a new management system was introduced in accordance with EU
Single European Sky legislation that is based on measuring and optimizing operating
and economic performance, with the resulting decision to abandon the full cost
recovery system. The means for implementing the service scheme is the National

ENAV - Annual financial report 2015 185