Chrysler 2006 Annual Report Download - page 152

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in 2005 regarding the recognition and measurement of
financial guarantee contracts in the financial statements
of the guarantor and having effect from January 1, 2006
has been applied.
First-time adoption of IFRS
General principle
In compliance with IFRS 1, Fiat S.p.A. has applied the
accounting standards effective at the reporting date of its
first IFRS financial statements to its opening Balance Sheet
at January 1, 2005 and retrospectively throughout all the
periods presented in those statements, except for the
exemptions permitted by IFRS 1 and elected by the company
as described in the following. In particular, as Fiat S.p.A. has
adopted IFRS for its separate financial statements at a later
date than for its consolidated financial statements (in which
there was an opening IFRS Balance Sheet at January 1, 2004),
it has measured assets and liabilities in accordance with IFRS
at the same value in both Balance Sheets (separate and
consolidated), with the exception of the items for which there
are consolidating adjustments.
There are the following differences in the opening Balance
Sheet at January 1, 2005 compared to that included in the
financial statements for the year ended December 31, 2004
prepared in accordance with Italian accounting principles:
■all assets and liabilities whose recognition is required by
IFRS, including those not permitted in the application of Italian
accounting principles, have been recognised and measured
in accordance with IFRS;
■all assets and liabilities whose recognition is required
by Italian accounting principles but is not permitted by IFRS
have been derecognised;
■certain Balance Sheet items have been reclassified
in accordance with IFRS.
The effects of these adjustments have been recognised directly
in opening equity at January 1, 2005, the date of first-time
adoption of IFRS.
In compliance with European Regulation no. 1606 of July 19,
2002, starting from 2005 the Fiat Group has adopted the
International Financial Reporting Standards (“IFRS”) issued
by the International Accounting Standards Board (“IASB”) for
the preparation of its consolidated financial statements. On the
basis of national legislation implementing that Regulation, the
annual statutory accounts of the Parent Company Fiat S.p.A.
at December 31, 2006 have also been prepared using those
accounting standards. As a consequence the Parent Company
Fiat S.p.A. is presenting its financial statements for 2006 and its
comparative figures for the prior year in accordance with IFRS.
This Appendix provides reconciliations of the company’s
Balance Sheets at January 1, 2005 and December 31, 2005 and
its Income Statement for the year ended December 31, 2005,
together with notes, as required by IAS 1 – Presentation of
Financial Statements.
This information has been prepared as part of the transition by
Fiat S.p.A. to IFRS and in connection with the preparation of its
statutory accounts for the year ending December 31, 2006 in
accordance with IFRS; it does not include all of the disclosures
which would be necessary for a full presentation of the financial
position and results of operations of Fiat S.p.A. as of and for
the year ended December 31, 2005 in conformity with IFRS.
Reconciliations required by IFRS 1
As required by IFRS 1 – First-time Adoption of International
Financial Reporting Standards,this Appendix describes the
principles adopted in preparing the opening Balance Sheet
at January 1, 2005 in accordance with IFRS and the main
differences with the Italian accounting principles used to
prepare the Italian financial statements for the year ended
December 31, 2005, and provides reconciliations between the
figures already published, prepared in accordance with Italian
accounting principles, and the corresponding figures
redetermined in accordance with IFRS.
The Balance Sheet and Income Statement for the year ended
December 31, 2005 have been prepared in accordance with
the provisions of IFRS 1 on the basis of the IFRS already
effective from January 1, 2006 as published at December 31,
2005. As a result in particular the amendment to IAS 39 issued
Appendix Transition of the Parent Company Fiat S.p.A. to International Financial Reporting Standards (IFRS) 301
Appendix
Transition of the Parent Company Fiat S.p.A. to
International Financial Reporting Standards (IFRS)