Chrysler 2007 Annual Report Download - page 297

The Provision for employee bonuses consists of the “one-off” amounts expected to be payable to employees for result bonuses
based on collective bargaining agreements. At December 31, 2006 this provision also included the estimated liabilities to
employees for bonuses that are linked to the achievement of annual targets; these amounts are classified at December 31, 2007
under Other payables (Current amounts payable to employees and Social security payables - see Note 25), since the payment was
made in January 2008, thereby removing any uncertainty as to their amount at the balance sheet date.
During 2006 changes in Provisions for employee benefits and other current provisions were as follows:
At At
(in thousands of euros) December 31, 2005 Accruals Utilisations December 31, 2006
Provision for contractual commissions 23,256 – (23,256) –
Provision for indemnities – 18,000 – 18,000
Restructuring provision 4,115 1,890 (4,115) 1,890
Provision for employee bonuses 3,620 6,901 (3,620) 6,901
Total Provisions for employee benefits and other current provisions 30,991 26,791 (30,991) 26,791
The provision for contractual commissions at December 31, 2005 had been originally established to provide against costs which
would have become payable to Mediobanca S.p.A. if it had finalised the listing of Ferrari S.p.A. shares, sold in 2002, and was used
to reduce the carrying amount of the investment in Ferrari S.p.A. repurchased in 2006.
23. Trade payables
At December 31, 2007, trade payables amount to 246,495 thousand euros, an increase of 61,834 thousand euros as compared to
December 31, 2006. The balance can be analysed as follows:
At At
(in thousands of euros) December 31, 2007 December 31, 2006 Change
Trade payables to third parties 240,607 167,115 73,492
Intercompany trade payables for goods and services 5,888 17,546 (11,658)
Total Trade payables 246,495 184,661 61,834
Trade payables to third parties are mainly due to CAV.E.T. and CAV. TO.MI. in relation to the work performed over the latter part of
the year (see Note 14).
Trade payables are due within one year and their carrying amount at the balance sheet date is deemed to approximate their fair
value.
Fiat S.p.A. Financial Statements at December 31, 2007 - Notes to the Financial Statements296