Chrysler 2007 Annual Report Download - page 146

145Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes
Receivables for dealer financing are typically generated by sales of vehicles and are generally managed under dealer network
financing programs as a component of the portfolio of the financial services companies. These receivables are interest bearing,
with the exception of an initial limited, non-interest bearing period. The contractual terms governing the relationships with the
dealer networks vary from Sector to Sector and from country to country, although these receivables are collected in approximately
two to six months on average.
The fair value of receivables from financing activities at December 31, 2007 amounts approximately to 12,285 million euros (11,282
million euros at December 31, 2006) and has been calculated using a discounted cash flow method based on the following
discount rates, adjusted, where necessary, to take account of the specific risk of insolvency of the underlying financial instrument.
in % EUR USD GBP CAD AUD BRL PLN
Interest rate for six months 4.71 4.60 5.94 4.63 7.40 11.46 5.99
Interest rate for one year 4.74 4.22 5.74 4.40 7.71 12.07 6.21
Interest rate for five years 4.56 4.20 5.07 4.45 7.55 12.98 5.99
Other receivables
At December 31, 2007, Other receivables mainly consist of Current tax receivables of 1,153 million euros (808 million euros at
December 31, 2006), Other tax receivables for VAT and other indirect taxes of 1,076 million euros (971 million euros at December
31, 2006) and Receivables from employees of 41 million euros (62 million euros at December 31, 2006).
At the balance sheet date the carrying amount of Other receivables is considered to be in line with their fair value.
20. Accrued income and prepaid expenses
The item Accrued income and prepaid expenses consists mainly of prepaid insurance premiums and rent.
21. Current securities
Current securities consist of short-term or marketable securities which represent temporary investments, but which do not satisfy
all the requirements for being classified as cash equivalents. In particular:
(in millions of euros) At December 31, 2007 At December 31, 2006
Current securities available-for-sale 156 90
Current securities for trading 135 134
Total Current securities 291 224