Chrysler 2010 Annual Report Download - page 334

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At 31 December 2010, assets arising from derivative financial instruments represents the fair value of the two equity swaps on Fiat S.p.A. shares entered
into with major banks by Fiat Finance S.p.A., 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 and in 2006, as described in Note 7. The fair value of those equity swap was
based on market quotations at the balance sheet date. At 31 December 2009, this item totaled €39,127 thousand and represented the fair value of the first
of the two above equity swaps entered into by Fiat Netherlands Holding N.V., while the fair value of the second equity swap was negative (see Note 25).
The carrying amount of financial receivables is deemed to approximate their fair value.
16. Other current receivables
At 31 December 2010, other current receivables amounted to €350,554 thousand, a net increase of €151,631 thousand over 31 December 2009.
They are broken down as follows:
(€ thousand)
31 December 2010 31 December 2009 Change
Intercompany receivables for consolidated IRES tax 240,192 120,755 119,437
Other intercompany receivables 217 1,070 (853)
VAT receivables 61,112 24,586 36,526
IRES tax receivables 46,389 49,209 (2,820)
IRAP tax receivables 647 1,163 (516)
Other 1,997 2,140 (143)
Total other current receivables 350,554 198,923 151,631
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 program.
Other intercompany receivables consist of miscellaneous amounts receivable.
VAT tax receivable essentially relates to the balance of VAT credits for Italian subsidiaries participating in the VAT tax consolidation, in addition to VAT refund
claims from prior periods.
IRES tax receivables includes amounts receivable that Italian subsidiaries participating in the domestic tax consolidation transferred to Fiat S.p.A. in 2010 and
previous years. At 31 December 2010, refund claims which had been factored amounted to €25,702 thousand (€25,214 thousand at 31 December 2009)
and were recognized on balance sheet, with the corresponding liability recorded under advances on factored receivables (see Note 25), pursuant to IAS 39.
At 31 December 2010, no interest was recognized in relation to VAT receivables subject to refund (as was also the case at 31 December 2009), while interest
on IRES tax receivables (100% factored) amounted to €2,702 thousand (€2,214 thousand at 31 December 2009).
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 2011.