Chrysler 2009 Annual Report Download - page 280

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PRINCIPAL ACTIVITIES
Fiat S.p.A. (the “Company”) is a corporation organised under the laws of the Republic of Italy and is the Parent Company of the
Fiat Group, holding interests, either directly or indirectly through sub-holdings, in the parent companies of business Sectors
through which the Fiat Group operates.
The Company’s head office is in Turin, Italy.
The financial statements of Fiat S.p.A. are prepared in euros which is the Company’s functional currency.
The Income Statement and Statement of Financial Position are presented in euros, while the Statement of Comprehensive
Income, the Statement of Cash Flows and the Statement of Changes in Equity and amounts provided in the Notes are in
thousands of euros, except where otherwise stated.
As the Parent Company, Fiat S.p.A. has also prepared consolidated financial statements for the Fiat Group for the year ended
31 December 2009.
SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The 2009 financial statements represent the separate financial statements of the Parent Company, Fiat S.p.A., and have been
prepared in accordance with the International Financial Reporting Standards (“IFRS”) issued by the International Accounting
Standards Board (“IASB”) and adopted by the European Union, and with provisions implementing Article 9 of Legislative Decree
38/2005. The designation “IFRS” also includes all valid International Accounting Standards (“IAS”), as well as all interpretations of the
International Financial Reporting Interpretations Committee (“IFRIC”), formerly the Standing Interpretations Committee (“SIC”).
In compliance with European Regulation 1606 of 19 July 2002, beginning in 2005 the Fiat Group adopted the International
Financial Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”), for the preparation of its
consolidated financial statements. On the basis of national legislation implementing that Regulation, those accounting standards
were also used to prepare the separate financial statements of the Parent Company, Fiat S.p.A., for the first time for the year
ended 31 December 2006. The information required by IFRS 1 - First-time Adoption of International Financial Reporting Standards
relating to the effects of the transition to IFRS was provided in an Appendix to the 2006 separate financial statements.
The financial statements are prepared under the historical cost convention, modified as required for the valuation of certain
financial instruments, as well as on the going concern assumption. In this respect, despite operating in a difficult economic and
financial environment, the Fiat Group’s assessment is that no material uncertainties (as defined in paragraph 25 of IAS 1) exist
about its ability to continue as a going concern, in view also of the measures already taken to adapt to the changed levels of
demand and Fiat Group’s industrial and financial flexibility.
Format of the financial statements
Presentation of Fiat S.p.A.’s Income Statement is based on the nature of its revenues and expenses, given the specific
activities carried out. Fiat Group’s Consolidated Income Statement is classified according to function, which is considered
more representative of the format used for management of the business sectors and internal reporting purposes and is in line
NOTES TO THE STATUTORY
FINANCIAL STATEMENTS
FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2009
NOTES