- v.2.6.2

EDAC VERSILIA S.R.L.

### Condensed explanatory notes - Assets

The figures booked among the assets of the balance sheet were assigned a value pursuant to the provisions of article 2426 of the Italian Civil Code and in compliance with the national accounting standards. The specific criteria applied are detailed within the sections related to the individual entries.

##### Fixed Assets

######## Intangible fixed assets

The conditions being met as per accounting standards, intangible fixed assets are reported in balance sheet assets at purchase cost, and are amortised on a straight-line basis according to their residual useful life. The value of the fixed assets is shown net of accumulated amortisation. Amortisation has been calculated in accordance with the following plan, which is deemed to provide a correct division of the cost borne throughout the useful life of the relevant fixed assets:

Intangible fixed assets	Period
Start-up and expansion costs	5 years
Concessions, licences, trademarks and similar rights	5 years
Other intangible fixed assets	5 years

Any disposals of intangible assets during the year resulted in the elimination of their residual value. The amortisation criterion for intangible fixed assets was systematically applied in each financial year in relation to the residual possibility of economic use of each individual asset. Pursuant to and for the purposes of art. 10 of Italian Law no. 72 of 19 March 1983, and as also mentioned by the subsequent monetary revaluation laws, it is noted that no monetary revaluation has been made for existing intangible fixed assets. Note that there was no need to impair said fixed assets pursuant to art. 2426, paragraph 1, no. 3 of the Italian Civil Code insofar as, as envisaged by accounting standard OIC 9, no indications of potential permanent losses of value of intangible fixed assets were found.

########## Start-up and expansion costs

Start-up and expansion costs were included among balance sheet assets because they have a useful life spanning several years. These costs were amortised within a period of no more than five years.

########## Intangible assets

Intangible assets are stated at purchase cost including ancillary costs and are amortised within the statutory or contractual limits envisaged.

######## Tangible fixed assets

Assets belonging to the category of tangible fixed assets, recognised at the date of transfer of the risks and benefits of the acquired asset, are entered in the balance sheet at purchase cost plus any ancillary costs incurred until the assets are ready for use, and in any case within the limits of their recoverable amount. These assets are recognised among balance sheet assets net of accumulated depreciation and write-downs. Any disposals of assets (transfers, scrapping, etc.) that took place during the year result in the elimination of their residual value. Any difference between the book value and the disposal value has been recognised in the income statement. For assets acquired during the year, the above rates were reduced by half since the depreciation thus obtained does not significantly differ from the amount calculated from the moment in which the asset is available and ready for use.

Financial statements as at 31-12-2017

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