Page 176 - ENAV eng_Relazione_Finanziaria_Annuale_2014

174 ENAV – 2014 Financial Statements

Employee benefits

Liabilities for short-term employee benefits paid during the employment
relationship are measured at the amount that has accrued at the balance
sheet date and allocations are classified as personnel costs.

ENAV is party to both defined contribution plans and defined benefit plans.
The defined contribution plans are managed by third party fund managers
with respect to whom ENAV has no obligations and to whom it pays over
contractually agreed contributions which are recognized as personnel
costs on an accrual basis.

The defined benefit plan consists of the Italian employees’ leaving
entitlement scheme (Trattamento di Fine Rapporto or TFR), with the relative
amounts accrued through 31 December 2006; in accordance with Law no.
296 of 27 December 2006, on the basis of the implicit and explicit decisions
taken by the workers the amounts accruing after that date are transferred
to supplementary pension schemes or the treasury fund managed by
the Italian national social security organization INPS. In the case of the
defined benefit plan, the amount of the benefit due to employees can only
be quantified after the termination of the employment relationship and is
based on a series of factors such as age, the number of years of service
and salary levels. The obligations deriving from this plan are calculated
by an independent actuary using the projected unit credit method. The
liability recognized in the financial statements accordingly coincides with
the actuarial valuation and any actuarial gains or losses arising from the
calculation are recognized in other comprehensive income in the period in
which they arise, taking into account the deferred tax effect.

Provisions for risks and charges

Provisions for risks and charges are recognized for losses and charges
of a specific nature whose existence is certain or probable but for which
the amount and/or date of occurrence cannot be determined. Provisions
are only recognized when the Company has a present obligation, legal or
constructive, arising from a past event, when it is probable that a future
outflow of economic benefits will be required to settle the obligation and
when it is possible to make a reliable estimate of that amount.

Where the financial effect of the time value of money is material and the
dates of settling the obligations can be reliably estimated, the provisions are
discounted using a pre-tax rate that reflects, where suitable, the market’s
current assessment of the time value of money and, if applicable, the risks
specific to the liability. The increase in the carrying amount of a provision
as the result of the discounting process is recognized as financial expense.

Changes in the estimates of allocations to provisions are recognized in
profit or loss in the period in which the change occurs and as an increase
in the liability. Downwards changes in estimates are recognized by making
a counter-entry to the liability up to its carrying amount, while any excess