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ENAV Group Consolidated Financial Statements

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.

Investments in other companies and financial assets available for sale

Investments in other companies, comprising non-current financial assets and not
destined for trading (namely investments available for sale), are measured at cost
adjusted for impairment losses, if the fair value cannot be reliably determined.

Financial assets

Financial assets are initially recognised at fair value, and adjusted for transaction
costs, if any. They are subsequently measured at amortised cost, using the effective
interest method, and adjusted for any impairment losses.
Impairment losses consist of the difference between the carrying amount and the
present value of future cash flows discounted using the original effective interest
rate.
If the due date of trade receivables and other current assets does not fall within
normal commercial terms and the receivables or assets do not bear interest,
an analytical discounting process is carried out on the basis of assumptions and
estimates. Trade receivables whose due dates fall within normal commercial terms
are not discounted.Trade and other receivables are classified as current assets, except
for those having a due date exceeding twelve months from the reporting date, which
are classified as non-current assets.

Cash and cash equivalents

Cash and cash equivalents include cash, bank deposits available and other forms
of short-term investments. At the reporting date, current account overdrafts are
classified among financial payables under current liabilities in the consolidated
statement of financial position. The items included in cash are measured at fair value
and the relevant charges are recorded in the Income Statement.

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