Chrysler 2007 Annual Report Download - page 193

Other risks on derivative financial instruments
As described in Note 22, the Group holds certain derivative financial instruments whose value is linked to the price of listed shares
and stock market indices (principally Equity swaps on Fiat shares).
Although theses transactions were entered into for hedging purposes, they do not qualify for hedge accounting under IFRS. As a
consequence, the variability of the underlying values could have an effect on the Group’s results.
In addition in 2007 the Group entered derivatives contracts linked to commodity prices to hedge specific exposures on supply
contracts.
Sensitivity analysis
In the event of a hypothetical, unfavourable and instantaneous change of 10% in the underlying values, the potential loss in fair
value of outstanding derivative financial instruments at December 31, 2007 linked to the Fiat share price would be approximately
37 million euros.
In the event of a hypothetical, unfavourable and instantaneous change of 10% in the underlying raw materials prices, the potential
loss in fair value of outstanding derivative financial instruments at December 31, 2007 linked to commodity prices would be
approximately 4 million euros.
35. Related party transactions
The Group engages in transactions with unconsolidated subsidiaries, jointly controlled entities, associated companies and other
related parties on commercial terms that are normal in the respective markets, considering the characteristics of the goods or
services involved.
The effects of such transactions on the consolidated income statements for 2007 and 2006 are as follows:
of which: with related parties
Jointly
Unconsolidated controlled Associated Other related Total related Effect
(in millions of euros) Total 2007 Subsidiaries entities companies parties parties on Total
Net revenues 58,529 52 2,213 372 2 2,639 4.5%
Cost of sales 48,924 16 3,145 54 49 3,264 6.7%
Selling, general and administrative costs 4,924 10 17 13 99 139 2.8%
of which: with related parties
Jointly
Unconsolidated controlled Associated Other related Total related Effect
(in millions of euros) Total 2006 Subsidiaries entities companies parties parties on Total
Net revenues 51,832 17 1,767 402 3 2,189 4.2%
Cost of sales 43,888 – 3,037 – 14 3,051 7.0%
Selling, general and administrative costs 4,697 4 3 12 50 69 1.5%
Fiat Group Consolidated Financial Statements at December 31, 2007 - Notes192