Chrysler 2010 Annual Report Download - page 173

FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2010
NOTES
172
Certain subsidiaries in the Components sector whose total assets and revenues are not material for the Group have been
consolidated on a line-by-line basis during 2010.
During the third quarter of 2010 the call option on the 5% of Ferrari S.p.A. share capital held by Mubadala Development
Company PJSC was exercised.
In the fourth quarter of 2010 the Fiat Group Automobiles sector acquired TCA Tecnologia en Componentes Automotivos SA,
a company located in the Brazilian state of Pernambuco.
During the fourth quarter of 2010 the Components sector incorporated the companies Magneti Marelli d.o.o. Kragujevac and
Plastic Components and Modules Fuel Tanks S.p.A., both recognised at cost.
ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
This section provides details of the contents of the items relating to Discontinued Operations as reported in the Consolidated
Income Statement, Consolidated Statement of Financial Position and Consolidated Statement of Cash Flows.
From a methodological standpoint it should be noted that with reference to the presentation required by IFRS 5, Discontinued
Operations are included in the scope of consolidation of the Fiat Group at 31 December 2010 and accordingly the total balances
relating to the whole Group have been determined by making the appropriate eliminations of transactions and balances between
Continuing Operations and Discontinued Operations. More specifically the approach was as follows:
the individual line items presented in the income statement under Profit/(loss) from Continuing Operations and the detail of
individual items included in these notes under Profit/(loss) from Discontinued Operations are presented before the elimination
of intragroup transactions between the two demerged operations, while Profit/(loss) for the year is stated after this elimination.
The effects of the elimination of intragroup transactions on individual income statement items are described in the notes.
at a statement of financial position level, the consolidation of both Continuing and Discontinued Operations implies, as
discussed in the previous paragraph, the need to eliminate intragroup transactions between these two sets of operations
so that the balances stated in Continuing Operations and in Discontinued Operations represent the assets and liabilities
resulting from transactions with parties outside the Fiat Group taken as a whole. It follows that these balances may not be
representative of the statement of financial position of the Fiat Group Post-Demerger and the Fiat Industrial Group. Given the
size of the amounts involved and their planned evolution (the timely repayment by the Fiat Industrial Group after the Demerger
of all of the net debt granted by the Fiat Group central treasury), it has been considered appropriate to include as an asset
in the statement of financial position an item consisting of the financial receivables of Continuing Operations due from
Discontinued Operations and as a liability an item consisting of the debt of Continuing Operations payable to Discontinued
Operations; the corresponding debt and financial receivable balances relating to Discontinued Operations are included in the
items Liabilities held for sale and Discontinued Operations and Assets held for sale and Discontinued Operations respectively:
this method of representation allows the assets and liabilities of Continuing Operations and those of Discontinued Operations
to be presented without taking into account the elimination of intragroup financial receivables and debt outstanding at 31
December 2010. The required elimination of these balances is made in a separate line added to assets and liabilities in order
to present the total assets and total liabilities of the Fiat Group as a whole in a correct manner.
all cash flows from Discontinued Operations are reported in the appropriate items for operating activities, investing activities
and financing activities in the Statement of Cash Flows. These items refer exclusively to cash flows arising from transactions
with parties outside the Fiat Group. It follows that the cash flows relating to Continuing Operations and those relating to
Discontinued Operations may not be representative of those of the Fiat Group Post-Demerger and the Fiat Industrial Group.