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ENAV Group Consolidated Financial Statements

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. Intangible assets such as goodwill acquired as part of
business combinations are recognized at their fair value at the acquisition date, if
that value can be measured reliably. 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 life
of assets or the way in which the future economic benefits associated with the asset
are consumed by the Group are recognized by changing the amortisation 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 Group does not have any intangible assets with an indefinite useful life, with the
exception of the goodwill arising on the business combination.

82 ENAV - Annual financial report 2015