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ENAV Group Consolidated Financial Statements

Employee benefits

Short-term benefits to employees are represented by salaries, wages, social security
contributions, paid leave and incentives payable as a bonus in the twelve months
from the reporting date. These benefits are recorded as employee cost components
in the period in which employee services were provided.
Benefits payable after the end of the employment relationship are subdivided into
two types: defined benefit plans and defined contribution plans. Because the benefit
to be paid can only be quantified once the employment has ended in defined benefit
plans, the relevant financial statement effects are recognised based on actuarial
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 past 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.

86 ENAV - Annual financial report 2015