Page 96 - ENAV eng_Relazione_Finanziaria_Annuale_2014

94 ENAV – 2014 Financial Statements

the traffic risk leads to an adjustment to route revenues, recognized under
the line item “balance charge adjustment for the year”.

As far as the cost risk is concerned, the possibility of passing on to air space
users the full amount of any differences between the budgeted amount
and the actual figure at the end of the year has been eliminated. These
variations, either negative or positive, are still borne by the providers in
their financial statements.

Since 2010, for terminal services the balance is determined within the
meaning of Regulation (EC) no. 1794/06, which amended the system for
determining charges, equating it to what was already happening from a
route perspective, calculated using a cost-cap logic in accordance with
the program agreement entered into with the competent ministries; any
difference between the planned and actual figures leads to an adjustment
to terminal revenues recognized under the line item “balance charge
adjustment for the year”.

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 the parent company 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,
the Group 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 the Group has obtained new or more accurate information, the
variation in the balance recovery plans does not lead to an adjustmentto
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 Group 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