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Notes to the Financial Statements of ENAV SpA 233

Notes to the adjustments

Note A – IAS 38 Intangible Assets

Certain items previously recognized in intangible assets do not qualify
for recognition as intangible assets under IFRSs and in particular IAS 38
Intangible Assets. The adjustments involved mainly refer to:

l patents and industrial property rights;
l other intangible assets
l assets under formation and payments on account.

Certain items classified as patents and industrial property rights and
assets under formation and payments on account have been derecognized
as assets for IFRS purposes as they do not qualify for recognition as such
under IAS 38, mainly in respect of the future economic benefits that must
flow to the Company.

The adjustment to other intangible assets consists of loan accessory costs,
which under Italian GAAP may be capitalized and amortized over the loan
term but which under IAS 39 must be deducted from the loans to which
they relate and be amortized using the effective interest rate method. In
addition, leasehold improvements have undergone a different accounting
treatment. Under Italian GAAP these are capitalized and amortized over
the term of the lease contract to which they relate while for IFRSs they are
classified as property, plant and equipment.

Note B – IAS 16 Property, Plant and Equipment

As previously stated certain items consisting of leasehold improvements,
previously recognized as “other intangible assets”, have been reclassified
to the item of property, plant and equipment to which they refer (such
as buildings and plant) in accordance with IAS 16, as the accounting
conditions existed. The useful lives of these assets, previously estimated
on the basis of the lease contract, have been revised to align them to the
category of assets to which they now belong. In addition, to ensure full
compliance with IFRS 1, the depreciation charged in the past on the basis of
the previous useful lives was reversed at the date of first-time adoption and
reclassified in the First-time Adoption reserve in equity, with depreciation
thencalculated on the basis of the new useful lives, this too recognized in
the First-time Adoption reserve. The effect deriving from the change in
depreciation rates is then recognizedin subsequent years.

In compliance with IAS 16, property, plant and equipment includes a portion
of inventories recognized under previous GAAP as current assets as these
assets qualify for recognition as non-current assets pursuant to paragraph
8 of IAS 16.This reclassification led to the requirement for the Company
to calculate past depreciation on these assets as if they had always
been considered to be fixed assets from the date of purchase, leading to
a negative effect that was recognized in the FTA reserve. In subsequent
years, this reclassification leads to effects arising from the recalculation of
the depreciation charge.