Page 175 - ENAV eng_Relazione_Finanziaria_Annuale_2014

Notes to the Financial Statements of ENAV SpA 173

If a hedging instrument expires or is sold, terminated or exercised without
replacement, or if it is no longer designated as a hedging instrument, or
if the hedge no longer meets the criteria for hedge accounting, any gain
or loss previously recognized in other comprehensive income remains
separately recognized in equity until the forecast transaction occurs.

ENAV does not enter derivative contracts for speculative purposes.

ENAV complies with the requirements of IFRS 13 whenever IFRSs require
fair value measurement to be used for recognition and/or measurement
purposes or in providing disclosures with respect to a specific asset or
liability. Fair value is the price that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants
at the measurement date. The fair value of instruments listed on public
markets is determined by reference to the bid price at the reporting date.

The fair value of unlisted instruments is measured by reference to financial
valuation techniques.

Financial assets and liabilities measured at fair value are categorized in the
three levels of the fair value hierarchy described in the following on the
basis of the relevance of the inputs used in determining the fair value.

More specifically:

Level 1: financial assets and liabilities whose fair value is determined on the
basis of quoted prices (unadjusted) in active markets for identical assets
and liabilities;

Level 2: financial assets and liabilities whose fair value is determined on the
basis of inputs other than quoted prices included in Level 1 but which are
observable in the market, either directly or indirectly;

Level 3: financial assets and liabilities whose fair value is determined on the
basis of unobservable market data.

Loans, trade payables and other financial liabilities

Loans, trade payables and other financial liabilities are initially recognized
at cost, corresponding to the fair value of liabilities, less any directly
attributable transaction costs, and are subsequently measured at
amortized cost using the effective interest method less any impairment
losses. Loans, trade payables and other financial liabilities are classified
as current liabilities unless they have a contractual due date exceeding
twelve months from the balance sheet date when they are classified as
non-current liabilities.