Chrysler 2009 Annual Report Download - page 133

132 FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2009
NOTES
For the Statement of financial position, a mixed format has been selected to present current and non-current assets and
liabilities, as permitted by IAS 1. In more detail, both companies carrying out industrial activities and those carrying out financial
activities are consolidated in the Group’s financial statements. The investment portfolios of financial services companies are
included in current assets, as the investments will be realised in their normal operating cycle. Financial services companies,
though, obtain funds only partially from the market: the remaining are obtained from Fiat S.p.A. through the Group’s treasury
companies (included in industrial companies), which lend funds both to industrial Group companies and to financial services
companies as the need arises. This financial service structure within the Group means that any attempt to separate current and
non-current debt in the consolidated Statement of financial position cannot be meaningful. Suitable disclosure on the due dates
of liabilities is moreover provided in the notes.
The Statement of Cash Flows is presented using the indirect method.
In connection with the requirements of the Consob Resolution No. 15519 of 27 July 2006 as to the format of the financial
statements, specific supplementary Income Statement, Statement of Financial Position and Statement of Cash Flows formats
have been added for related party transactions so as not to compromise an overall reading of the statements.
Basis of consolidation
Subsidiaries
Subsidiaries are enterprises controlled by the Group, as defined in IAS 27 – Consolidated and Separate Financial Statements.
Control exists when the Group has the power, directly or indirectly, to govern the financial and operating policies of an
enterprise so as to obtain benefits from its activities. The financial statements of subsidiaries are combined in the consolidated
financial statements from the date that control commences until the date that control ceases. Non-controlling interest in
the net assets of consolidated subsidiaries and non-controlling interest in the profit or loss of consolidated subsidiaries are
presented separately from the interest of the owners of the parent in the consolidated statement of financial position and
income statement respectively. When losses in a consolidated subsidiary attributed to the non-controlling interest exceed the
minority’s interest in the subsidiary’s equity, the excess is allocated against the majority interest except to the extent that the
minority has a binding obligation and is able to make an additional investment to cover the losses, in which case the excess
is recorded as an asset in the consolidated financial statements. If no such obligation exists, should profits be realised in the
future, the non-controlling interest share of those profits is attributed to the issued capital and reserves attributable to owners
of the parent, up to the amount necessary to recover the losses previously absorbed by the issued capital and reserves
attributable to owners of the parent.
Subsidiaries that are either dormant or generate a negligible volume of business, are not consolidated. Their impact on the
Group’s assets, liabilities, financial position and profit/(loss) attributable to the owners of the parent is immaterial.
Jointly controlled entities
Jointly controlled entities are enterprises over whose activities the Group has joint control, as defined in IAS 31 – Interests in
Joint Ventures. The consolidated financial statements include the Group’s share of the earnings of jointly controlled entities
using the equity method, from the date that joint control commences until the date that joint control ceases.
Associates
Associates are enterprises over which the Group has significant influence, but no control or joint control, over the financial and
operating policies, as defined in IAS 28 – Investments in Associates. The consolidated financial statements include the Group’s
share of the earnings of associates using the equity method, from the date that significant influence commences until the date
that significant influence ceases. When the Group’s share of losses of an associate, if any, exceeds the carrying amount of the
associate in the Group’s balance sheet, the carrying amount is reduced to nil and recognition of further losses is discontinued
except to the extent that the Group has incurred obligations in respect of the associate.