Page 173 - ENAV eng_Relazione_Finanziaria_Annuale_2014

Notes to the Financial Statements of ENAV SpA 171

Equity investments

Investments in subsidiaries are measured at purchase cost, including
directly attributable accessory costs, adjusted for any impairment losses
that are recognized in profit or loss. An impairment loss is reversed if
the reasons underlying the recognition of the loss no longer hold, up the
amount of the loss. The reversal of an impairment loss is recognized in
profit or loss.

Subsidiaries are companies for which ENAV has the power to govern,
directly or indirectly, financial and operating policies in order to obtain the
benefits deriving from their activities.

Investments in other companies are measured at fair value. The cost
method is used if fair value cannot be reliably measured.

Financial assets

Financial assets are initially recognized at fair value, adjusted for any
transaction costs, and are subsequently measured at amortized cost using
the effective interest method less 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.

Trade and other receivables

Trade receivables and other receivables are initially accounted for at fair
value and are subsequently measured at amortized cost less a bad debts
allowance.

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 do not
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 balance sheet date which are
classified as non-current assets.