Chrysler 2008 Annual Report Download - page 212

On 6 December 2007, the Group acquired the entire ownership of the Ergom group which carries out its business in the
automotive sector. Consolidation of the Ergom Group on a line-by-line basis began during the second quarter of 2008, in this case
with effect from 1 January 2008, leading to the recognition of a goodwill for €5 million. This goodwill continues to be recognised in
the balance sheet at 31 December 2008 since the acquired group is capable of achieving a high level of profitability, synergies from
the acquisition are expected to provide value and additional benefits will arise from the purchase. The IFRS book value of the
Ergom group’s assets and liabilities at the acquisition date and immediately after the acquisition were as follows:
IFRS book value
IFRS book value at immediately
(€ millions) the acquisition date after the acquisition
Non current assets 388 388
Current assets 245 245
Total assets 633 633
Liabilities 633 633
Contingent liabilities ––
If the acquisition date for these transactions had been 1 January 2008, consolidated revenues and net income for the period would
have remained substantially unchanged.
In addition, the Group acquired in 2008 minority interests in companies in which it already held control, leading to the recognition
of the following cash outflows:
Goodwill
Purchased Cash outflows recognised at the
(€ millions) minority interest on acquisition acquisition date
Acquisition of the remaining capital of EEA shares 33.33% 13 –
Total 33.33% 13 –
In 2007, the Group acquired the following subsidiaries:
At the end of April 2007 Magneti Marelli reacquired control of Automotive Spare Parts Distribution Operations (After Market Parts
and Services business line) following its acquisition of 60,54% of Concordia Finance S.A., leading to the recognition of a goodwill
for €37 million. This goodwill continues to be recognised in the balance sheet at 31 December 2007 since the acquired company is
capable of achieving a high level of profitability and additional benefits will arise from the purchase. The IFRS book value of the
acquiree’s assets and liabilities at the acquisition date and immediately after the acquisition were as follows:
IFRS book value
IFRS book value at immediately
(€ millions) the acquisition date after the acquisition
Non current assets 48 71
Current assets 88 88
Total assets 136 159
Liabilities 126 133
Contingent liabilities ––
Fiat Group Consolidated Financial Statements at 31 December 2008 211