Page 236 - ENAV eng_Relazione_Finanziaria_Annuale_2014

234 ENAV – 2014 Financial Statements

In addition, using the “component approach”, the useful lives of certain
significant components for which a separate estimate is possible were
recalculatedas part of the transition process. The effect of this change
in accounting policy has been recognized in the FTA reserve. The effect
on profit or loss derives from the different depreciation rates used for the
different components subject to separate measurement.

Note C – IAS 39 Financial Instruments

The adjustments made as the result of applying IFRSs mainly regard
the loans taken out by the Company with certain banks which have
beenrecalculated to adjust these to amortized cost as required by IAS 39,
being the present value of the amount that must be repaid at the due date
discounted using the effective interest rate.

Note D – IAS 18 Revenue

ENAV recognizes revenues for the Eurocontrol balance which are
recovered by inclusion in the charges of future years with respect to their
recognition in the financial statements. In accordance with IAS 18 these
revenues have been adjusted to reflect their fair value, which is determined
by discounting the nominal value of the amounts involved at the average
interest rate at which the Company obtains funds on the third party market.
The discounted amount reducing revenues for the year is recognized as
interest income in subsequent years. This adjustment on transition into
IFRSs led to a negative effect, recognized in the FTA reserve. Part of the
interest income arising from the process of discounting the “balance”
items of previous years is then recognized in profit or loss during the year.

Note E – Employee benefits

Under Italian GAAP, the liability for the Italian employees’ leaving
entitlement (TFR) is measured on the basis of the nominal obligation due
in accordance with civil law requirements in force at the balance sheet
date.

Under IAS 19 Employee Benefitson the other hand, the TFR is a defined
benefit plan subject to actuarial valuation and requiring a calculation to
be made of the liability for each employee using the projected unit credit
method. The balance of the TFR is therefore calculated on the basis of
actuarial assumptions and valuation methods and the demographic,
economic and financial variablesused in the calculation are validated by an
actuary on an annual basis.

In accordance with this standard, all actuarial gains and losses at the date
of transition to IFRSs were recognized in the FTA reserve and those arising
on the annual valuation are recognized in a specific equity reserve.