Page 180 - ENAV eng_Relazione_Finanziaria_Annuale_2014

178 ENAV – 2014 Financial Statements

The balance charge adjustment is not included in the charge until two years
later, while in the current year the balance asset or liability recognized
customarily in the two previous years is transferred to profit or loss through
the item “utilization of the balance”.

Given that the recovery of the asset and liability balances is deferred
over time, in accordance with IAS 18 ENAV measures such revenues at
fair value, discounting them using the average interest rate for which it
obtains funds on the third party market. The adjustment is recognized as
a reduction in the balance receivable or payable to which it refers and as
a reduction in revenues for the year. This amount is released to profit or
loss in subsequent years for the portion of interest income accruing in the
period.

If the plans for the recovery of the balances in the charges are changed,
ENAV adjusts the balance receivable/payable to reflect the effective and
recalculated estimated cash flows. The carrying amount is then recalculated
by determining the present value of the future cash flows using the original
interest rate; in addition to adjusting the balance receivables and payables,
the difference arising is also recognized in profit or loss as financial income
or expense. Being a change in estimate arising from the fact that ENAV has
obtained new or more accurate information, the variation in the balance
recovery plans does not lead to an adjustment to previous financial
statements and any changes are applied prospectively.

Grants

Revenue grants are recognized on an accrual basis in the year in which the
reasonable assurance arises that the Company is entitled to receive them,
regardless of the date of receipt.

Capital grants are recognized when there is reasonable assurance that
the conditions for receiving the grant will be met and that the grants will
be received. Capital grants are recognized as a liability and are released
to income over the periods required to match them in proportion to the
depreciation of the assets to which they refer using the “income method”.