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82 ENAV – 2014 Financial Statements

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

In calculating the recoverable amount, the Group determines fair value less
costs to sell by discounting estimated future cash flows to their present
value using a pre-tax discount rate that reflects market assessments of the
time value of money and the risks specific to the asset.

For estimating value in use, future cash flows are taken from the above-
mentioned business plans, which represent the Group’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.

The estimates of these amounts are considered recoverable and reasonable;
nevertheless, possible changes in the assumptions underlying the estimates
on which the calculation of the recoverable amounts is based could produce
different valuations.