Page 177 - ENAV eng_Relazione_Finanziaria_Annuale_2014

Notes to the Financial Statements of ENAV SpA 175

is recognized in profit or loss in the line item to which the provisions refer.

Amounts included in provisions for risks and charges are classified as
either current or non-current depending on the estimated date on which
the liability will be settled or extinguished.

Charge Stabilization Provision

The Charge Stabilization Provision was created under a resolution adopted
by the Shareholders’ Meeting of 9 May 2003 by allocating ¤72,697
thousand of the reserve for finalizing and settling tax receivables (Law no.
289/02). This increased in subsequent years following allocations of part
of the Company’s net income approved by shareholders, and is used solely
for business purposes.

The Charge Stabilization Provision falls within the scope of government
grants, as treated by IAS 20. The grant is initially recognized as a liability
(classified in “Other non-current liabilities”). This liability is then released to
income on the determination of the charge as a means of “supplementing”
the reduced revenues earned by ENAV in the same year through a charge
stabilization process. More specifically, the Charge Stabilization Provision
is used when ENAV decides to reduce charges; in this case a part of the
costs incurred is not to passed on to carriers but is offset by releasing a
portion of the grant recognized as a liability to income, thereby ensuring
economicity. The following points further support these comments:

l the fund has the nature of a grant used for off-setting purposes;
l European regulations on charge determination establish that a

member state may reduce charges by means of subsidies/grants that
enable the operator to offset losses;
l resolutions of shareholders’ meetings to create or make changes
to the provision are adopted on the basis of Regulation (EC) no.
1794/06.

Impairment of assets

The carrying amount of an asset or a cash-generating unit (CGU) is
assessed at the balance sheet date to determine whether there is any
indication of impairment.

If such indications exist, the recoverable amount of these assets is
estimated to calculate the need to recognize an impairment loss.

ENAV carries out this impairment testing and calculates the recoverable
amount of its CGUs.

The recoverable amount of an asset or cash-generating unit is the higher of
its fair value less costs to sell and its value in use, calculated by individual
asset, unless the asset generates cash flows that are not largely independent