Chrysler 2009 Annual Report Download - page 309

FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2009
NOTES
308
The current account with Fiat Finance S.p.A. reflects the balance on the account held with that company as part of the Group’s centralised treasury
management.
Amounts due from Fiat Netherlands Holding N.V. for derivative financial instruments represents the fair value of the first of the two equity swaps on Fiat S.p.A.
shares entered into with major banks by Fiat Netherlands Holding N.V., under instruction from Fiat S.p.A., to hedge against an increase in the share price
above the exercise price of the stock options granted to the Company’s Chief Executive Officer in 2004, as described in Note 8. The fair value of that equity
swap was based on market quotations at the balance sheet date. At 31 December 2008, the fair value of both equity swaps was negative and, therefore,
they were recognised as liabilities (see Note 25).
The carrying amount of financial receivables is deemed to approximate their fair value.
17. Other current receivables
At 31 December 2009, other current receivables amounted to €198,923 thousand, a net decrease of €706,135 thousand over 31 December 2008. They
are broken down as follows:
At At
(€ thousand) 31 December 2009 31 December 2008 Change
Intercompany receivables for consolidated IRES tax 120,755 285,048 (164,293)
Other intercompany receivables 1,070 42,039 (40,969)
VAT receivables 24,586 304,262 (279,676)
IRES tax receivables 49,209 269,286 (220,077)
IRAP tax receivables 1,163 - 1,163
Other 2,140 4,423 (2,283)
Total other current receivables 198,923 905,058 (706,135)
Intercompany receivables for consolidated IRES tax arise from the tax calculated on the taxable income contributed by the Italian subsidiaries participating
in the domestic tax consolidation programme.
Other intercompany receivables consist of miscellaneous amounts receivable. At 31 December 2008, this item included an amount of €27,000 thousand
due from Fiat Partecipazioni S.p.A. arising from the partial spin-off in 2008. The amount was paid during 2009.
IRES tax receivables includes amounts receivable that Italian subsidiaries participating in the domestic tax consolidation transferred to Fiat S.p.A. in 2009
and previous years. At 31 December 2009, refund claims which had been factored amounted to €25,214 thousand (€230,795 thousand at 31 December
2008) and were recognised on balance sheet, with the corresponding liability recorded under advances on factored receivables (see Note 25), pursuant to
IAS 39.
The decrease of €279,676 thousand in VAT receivables and €220,077 thousand in IRES tax receivables were essentially attributable to refunds on
consolidated VAT (for 2008) and IRES (for prior years) received during the year.
At 31 December 2009, no interest was recognised for VAT receivables subject to refund (compared to €217 thousand at 31 December 2008), while interest
on IRES tax receivables (100% factored) amounted to €2,214 thousand (€26,081 thousand at 31 December 2008).
The carrying amount of other current receivables is deemed to approximate their fair value.
Other current receivables are almost entirely due by the end of 2010.