Page 194 - enav_27052016

ENAV S.p.A. Financial Statement

IFRS 16 – Leases, issued in January 2016, replaces the previous standard on leasing,
namely IAS 17 and the relative interpretations. It identifies the criteria for recording,
measuring and presenting as well as disclosures to be made regarding leasing
contracts for both parties, the lessor and lessee. Even though IFRS 16 does not
change the definition for a leasing contract provided by IAS 17, the main difference
is the introduction of the concept of control within the definition itself. In particular,
in order to determine whether a contract is a leasing contract or not, IFRS 16 requires
that an assessment be performed as to whether the lessee is entitled to control the
use of a specific asset over a specific time period. IFRS 16 eliminates the classification
of leases as either operating leases or finance leases as required by IAS 17 and,
instead, introduces a single accounting model for all leasing contracts. Based on this
new model, the lessee must recognise: i) assets and liabilities in the balance sheet for
all leases with a term of more than 12 months, unless the underlying asset is of low
value; ii) the depreciation of leased assets separately from interest on lease liabilities
in the Income Statement
With regard to the lessor, IFRS 16 essentially replicates the accounting requirements
of IAS 17.The lessor must consequently continue classifying and recognising operating
and financial leases differently in the balance sheet. Subject to endorsement, the
standard will be applicable as from the financial periods starting 1 January 2019.
ENAV is assessing the potential effects of applying this new standard in the future.
Amendments to IAS 1 - Disclosure initiative,issued in December 2014.The amendments
that form part of a broader initiative to improve the presentation and disclosure of
financial statements, include updates in several areas:
• materiality: it was clarified that the concept of materiality applies to the financial

statements as a whole, and that the inclusion of immaterial information could
obscure the useful financial information;
• disaggregation and subtotals: it was clarified that the specific items in the Income
Statement, statement of financial position and other comprehensive income for
the period can be disaggregated. New requirements were also introduced regarding
the use of subtotals;
• structure of the notes: it was clarified that companies had some flexibility regarding
the order in which the notes to the financial statements were presented. It was
emphasised that when establishing this order, the company must be cognisant of
the requirement that the financial statements are understandable and comparable;
• equity interests measured using the equity method: the portion of items in the
comprehensive Income Statement relating to equity interests in associates and
joint ventures measured using the equity method must be divided between the
part that can be reclassified and not reclassified to the Income Statement; these
parts must be presented as independent items, in the scope of the respective
sections of the Statement of comprehensive income.

ENAV - Annual financial report 2015 193