Chrysler 2010 Annual Report Download - page 310

309
PRINCIPAL ACTIVITIES
Fiat S.p.A. (the “Company”) is a corporation organized 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 2010.
Demerger and presentation of assets and liabilities to be demerged
Pursuant to the Deed of Demerger executed on 16 December 2010, the Demerger – approved by the Shareholders of Fiat
S.p.A. and Fiat Industrial S.p.A. on 16 and 17 September 2010, respectively – became effective on 1 January 2011. The
Demerger consisted of the transfer by Fiat S.p.A. of its shareholdings in companies operating in the Agricultural and Construction
Equipment (CNH), Trucks and Commercial Vehicles (Iveco) and related powertrain (FPT Industrial) sectors, in addition to other
assets and liabilities detailed in the Demerger Plan (and described further on in this document), to Fiat Industrial S.p.A.
Pursuant to IFRS 5 – Assets held for sale and discontinued operations, in the statement of financial position of the parent
company for the year ended 31 December 2010, Assets to be Demerged and Liabilities to be Demerged are presented
separately from other assets and liabilities due to the fact that they constitute a “disposal group”. Details of the component
elements of those line items are provided in Note 18 to the Financial Statements.
Finally, as the Demerger is a “business combination involving entities or businesses under common control”, it is outside the
scope of application of IFRS 3 and IFRIC 17. Accordingly, no adjustment to the carrying amount of assets and liabilities to be
demerged has been made. For the purposes of the statutory financial statements, given Fiat S.p.A.’s role as a holding company,
the classification of Discontinued Operations does not exist and therefore the value of that line item in the income statement is zero.
SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation
The 2010 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”).
NOTES TO THE STATUTORY
FINANCIAL STATEMENTS
FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2010
NOTES