Chrysler 2011 Annual Report Download - page 272

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Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2011
Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2011
Notes
Notes to the Statutory
Financial Statements
Principal activities
Fiat S.p.A. (the “Company”) is incorporated in the Republic of Italy and is the parent company of Fiat Group, which holds interests, either
directly or indirectly, in the parent companies of the sectors through which the Group operates.
The Company’s head office is in Turin, Italy.
Fiat S.p.A.’s financial statements are prepared in euros, which is the Company’s functional currency.
The Statements of Income and Financial Position are presented in euros, while the Statements of Comprehensive Income, Cash Flows
and Changes in Equity and the Notes to the Financial Statements are in thousands of euros, except where otherwise stated.
As parent company, Fiat S.p.A. has also prepared consolidated financial statements for Fiat Group for the year ended 31 December 2011.
Demerger and presentation of assets and liabilities 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 transaction consisted
in the transfer by Fiat S.p.A. to Fiat Industrial 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.
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 were presented separately from other
assets and liabilities due to the fact that they constituted a “disposal group”. Details of the component elements of those line items are
provided in Note 18 to the Financial Statements.
As the Demerger represented a “business combination involving entities or businesses under common control”, it was outside the
scope of application of IFRS 3 and IFRIC 17. Accordingly, in the Financial Statements at 31 December 2010 no adjustments were
made to the carrying amounts of the demerged assets. For the purposes of the statutory financial statements, given Fiat S.p.A.’s role
as a holding company, the classification of Discontinued Operations did not apply and therefore the value of that line item in the income
statement was zero.
Significant accounting policies
Basis of preparation
The 2011 statutory 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, in addition to 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”).