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ENAV Group Consolidated Financial Statements

Financial income and expense

Financial income and expense are recognized on an accrual basis on the basis of
the interest earned or due on the relative financial assets and liabilities, using the
effective interest rate and, where envisaged, the legal interest rate.

Income taxes

Current income taxes, IRES and IRAP, are calculated on the basis of the best estimate
of taxable income for the financial period, in accordance with the tax regulations
applicable in the countries where the Group carries out its activities, applying current
tax rates. Current tax liabilities are recognized in the balance sheet net of any taxes
paid on account.
Deferred tax assets and liabilities are calculated in relation to all the temporary
differences that emerge between the tax value of an asset or liability and the relative
carrying value, on the basis of the tax rates that are expected to apply in the financial
periods when the temporary differences will be realised or extinguished. A deferred
tax asset is recognized when it is probable that taxable profit will be available against
which the underlying deductible temporary difference can be utilized, unless the
deferred tax asset arises from the initial recognition of an asset or a liability in a
transaction that: i) is not a business combination; ii) at the time of the transaction
affects neither accounting profit nor taxable profit (tax loss).
Deferred tax assets and liabilities are recognized directly in profit or loss, except
for those relating to items recognized in other comprehensive income or equity.
In these cases, the related deferred tax assets or liabilities are also recognized in
comprehensive income or equity.
The Company offsets deferred tax assets and deferred tax liabilities if, and only if,
it has a legally enforceable right to set off current tax assets against current tax
liabilities and the deferred tax assets and deferred tax liabilities relate to the same
taxation authority.
Deferred tax assets and deferred tax liabilities are classified as non-current assets
and liabilities.
Taxes and levies not related to income are recorded under the caption “Other
operating expenses” in the Income Statement.

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