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Notes to the Consolidated Financial Statements of the Enav Group 93

l the fund has the nature of a grant used for off-setting purposes;
l European regulations on the determination of charges establish that a

member state may reduce charges by means of subsidies/grants that
enable the operator to offset losses;
l resolutions of shareholders’ meetings to create or make changes to the
provision are adopted on the basis of Regulation (EC) no. 1794/06.

Revenues

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

Balance

At an international level, until 31 December 2011 Eurocontrol member
countries used a cost recovery route charge system. This system is based
on the concept that revenues should be proportional to the costs incurred
for route air navigation control services. By virtue of this principle, charges
were calculated on the basis of the forecast amount that would lead to
economic break-even. At the end of the year, if revenues exceeded the
costs incurred this would lead to a “negative balance” (over-recovery),
giving rise to an adjustment to profit or loss for the extra revenues and
the recognition of a “balance” liability. If on the other hand revenues were
lower than the costs incurred,an increase in revenues would be recognized
together with a “positive balance” (under recovery). In accordance with
the cost recovery principle, the “balance” wasthe result of the correcting
mechanism used to adjust revenues to the actual amount of the costs
incurred and subject to charges. The effects of this mechanism were
included for charging purposes from the second year following that of
reference and accounted for in profit or loss with a sign opposite to that of
their recognition.

Starting in 2012, and as the result of the introduction of the route air
navigation services system, a new management system was introduced
in accordance with EU Single European Sky legislation that is based on
measuring and optimizing operating and economic performance, with
the resulting decision to abandon the full cost recovery system. The
means for implementing the service scheme is the National Performance
Plan approved for the three-year period 2012-2014 which sets out the
actions and targets to be achieved in the reference period. The efficiency
targets provide for the introduction of risk elements to be borne by the
provider relating to both traffic and costs. More specifically, the traffic risk
mechanism envisages the sharing of the traffic risk between providers and
users of the air space, for which variations, positive and negative, of up to
2% of actual traffic compared to plan are fully borne by the providers, while
variations between 2% and 10% are shared, with 70% of these being borne
by the airline companies and 30% by the providers. In accordance with the
above-mentioned rules, any positive or negative difference with respect to