Chrysler 2005 Annual Report Download - page 126

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Fiat Group Consolidated Financial Statements at December 31, 2005 - N otes to the Consolidated Financial Statements
In accordance with IFRS 2, the Group measures the liability arising from cash-settled share-based payment transactions at fair value at each
reporting date and at the date of settlement; the changes in the fair value of these liabilities are recognised in the income statement for the
period.At December 31, 2005, the Group measured the fair value of the liabilities generated by these plans using the binomial method based
on the following market data:
GM $1 2/3 share Fiat S.p.A. ordinary share
Closing price $ 19.42 €7.36
Expected volatility (%) 77.56 28.39
Expected dividend yield (%) 10.30 0.00
The total change in the fair value of these cash-settled share-based payment plans recognised by the Group in the 2005 income statement
amounts to 2 million euros.
Treasury Stock
Treasury stock consists of 4,331,708 Fiat S.p.A. ordinary shares for an amount of 28 million euros.
Capital reserve
At December 31, 2005, the Capital reserve represents additional paid-in capital consisting of the share premium paid by the subscribers of the
capital increase made after the extinguishment of the Mandatory Convertible Facility on September 20, 2005 described at the paragraph
Capital stock.
Revenue reserves
The principal revenue reserves are as follows:
The legal reserve of Fiat S.p.A. of 447 million euros at December 31, 2005 (447 million euros at December 31, 2004);
Retained losses totalling 1,052 million euros at December 31, 2005 (1,063 million euros at D ecember 31, 2004);
The net result before minority interest of 1,331 million euros for the year ended D ecember 31, 2005 (a loss of 1,634 million euros for the
year ended D ecember 31, 2004);
The share based payments reserve of 13 million euros at December 31, 2005 (1 million euros at D ecember 31, 2004).