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ENAV Group Consolidated Financial Statements

If the asset does not generate cash inflows that are largely independent, the asset’s
recoverable amount is calculated in relation to the Cash Generating Unit to which
it belongs.
An impairment loss is recognised in the Income Statement when the carrying value
of the asset or relative cash generating unit to which it belongs, is greater than its
recoverable value.
An impairment loss recognized in prior periods is only reversed if there has been a
change in the estimates used to determine the asset’s recoverable amount since
the last impairment loss was recognized. In this case, the asset’s carrying value is
restored by crediting the Income Statement, to the extent of the carrying value that
the relevant asset would have had if no impairment loss had been made and the
relevant amortisations had been carried out. After the reversal of an impairment loss
is recognized, the depreciation or amortization charge for the asset is adjusted in
future years to allocate the asset’s revised carrying amount, less any residual value,
on a straight-line basis over its remaining useful life.
The estimates of these amounts are considered recoverable and reasonable;
nevertheless, possible changes in the assumptions underlying the estimates on
which the calculation of the recoverable amounts is based could produce different
valuations.

Determining the useful life

The depreciation and amortisation of property, plant and equipment and intangible
assets is recognised on a straight line basis over the estimated useful life of each
asset. The useful life is determined from the time the asset is acquired, and is based
on experience with similar investments, market conditions and the anticipation of
future events that could impact on the useful life. The effective useful life could
therefore differ from the estimated useful life. On an annual basis, the Group assesses
changes in technology so as to update the residual useful life. These updates could
result in a change to the amortisation period and, consequently, also the depreciation
rate for the current and future periods.

Provisions for risks

Under risk provisions, the Group incorporates probable liabilities that refer to disputes
and litigation with employees, suppliers and third parties, and generally the other
expenses arising from obligations assumed. The calculation for the allocation to the
risk provision involves making estimates based on current knowledge of factors that
could change over time, leading to a final outcome that differs significantly from
what was taken into account when drawing up the consolidated financial statements.

94 ENAV - Annual financial report 2015