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176 ENAV – 2014 Financial Statements

of those generated by other assets or groups of assets in which case the
Company estimates the recoverable amount of the cash-generating unit to
which the asset belongs.

In calculating the recoverable amount, the Company determines fair value
less costs to sell on the basis of the expected cash flows of the CGUs and a
suitable discount rate is identified to calculate the net present value of those
flows. Future cash flows are taken from business plans, which represent
the Company’s best estimate of the estimated economic conditions during
the period of the plan. The plan’s projections normally cover a period of five
years. Future cash flows are estimated by referring to current conditions;
accordingly the estimates do not take into account the benefits deriving
from any future restructuring to which the Company is not yet committed
or any future investments improving or optimizing the asset or the unit.

If the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset is impaired and its carrying amount is
consequently reduced to its recoverable amount.

The impairment losses of operating assets are recognized in profit or
loss. An impairment loss recognized in prior periods is only reversed if
there has been a change in the estimates used to determine the asset’s
recoverable amount since the last impairment loss was recognized. If this
is the case, the carrying amount of the asset is increased to its recoverable
amount, although the increased carrying amount may not exceed that
which would have been determined (net of depreciation or amortization)
had no impairment loss been recognized for the asset in prior years. The
reversal of an impairment loss is always recognized in profit or loss. After
the reversal of an impairment loss is recognized, the depreciation or
amortization charge for the asset is adjusted in future years to allocate the
asset’s revised carrying amount, less any residual value, on a straight-line
basis over its remaining useful life.

Revenues

Revenues are recognized on an accrual basis to the extent it is probable
that economic benefits will be obtained by the Company and the relative
amount can be reliably determined.