Page 172 - ENAV eng_Relazione_Finanziaria_Annuale_2014

170 ENAV – 2014 Financial Statements

asset belongs. Impairment losses are recognized in profit or loss as part of
write-downs and impairment losses and are reversed when the reasons
leading to that loss no longer exist.

On the sale of an asset or if no future economic benefits are expected
from its an asset is derecognized and any gain or loss (calculated as the
difference between the disposal proceeds and the carrying amount) is
recognized in profit or loss in the year of derecognition.

Intangible assets

Intangible assets are identifiable assets without physical substance that
are controlled by the Company and from which future economic future
benefits are expected to flow to the Company. They are recognized at
purchase cost, including any directly attributable costs required to make
the asset available for use. Internally generated intangible assets are not
capitalized and are recognized in profit or loss in the year the related costs
are incurred.

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

lives of assets or the way in which the future economic benefits associated
with the asset are consumed by the Company are recognized by changing
the amortization period and/or method and are treated as changes in
accounting estimate: the amortization charge for intangible assets with a
finite useful life is recognized in profit or loss in the cost category consistent
with the function of the intangible asset.

Intangible assets with indefinite useful lives are not amortized and are
tested annually for impairment at both an individual and cash-generating
unit level. The assessment that an intangible asset has an indefinite life is
reviewed annually to determine whether that assessment still holds. If not,
the change in the useful life assessment from indefinite to finite is applied
on a prospective basis.

The Company does not have any intangible assets with indefinite useful
lives.

Gains and losses on the disposal of intangible assets are determined as the
difference between the net disposal proceeds and the carrying amount of
the asset and are recognized in profit or loss on disposal.

In particular, the following main intangible assets are identifiable: patents
and intellectual property rights represented by licenses and software and
other intangible assets having an estimated useful life of three years.