Chrysler 2011 Annual Report Download - page 316

315
Fiat S.p.A. - Statutory
Financial Statements
at 31 December 2011
These amounts may be analyzed by line as follows:
(€ thousand) 31 December 2011 31 December 2010 Change
Contract work in progress 244,331 242,709 1,622
- Florence-Bologna line 161,777 161,110 667
- Novara-Milan line 82,554 81,599 955
Less: Net advances for work completed 245,130 244,479 651
- Florence-Bologna line 162,294 161,829 465
- Novara-Milan line 82,836 82,650 186
Gross amount due to the customer 799 1,770 (971)
- Florence-Bologna line 517 719 (202)
- Novara-Milan line 282 1,051 (769)
Contract work in progress is measured on the basis of the stage of completion in relation to the sales price, which in this case is the consideration
contractually agreed for the activities directly carried out by Fiat S.p.A. Contract costs relating to the contract revenue recognized totaled €98,106 thousand
at 31 December 2011 (€97,258 thousand at 31 December 2010). Changes in contract work in progress have been recognized in the income statement
under the item other operating income (see Note 4). When the lines are contractually completed, the final contractual revenues for the activities directly
carried out are recognized in the income statement under other operating income, net of any decrease in inventories. At the same time, the accounts for
inventories and amounts classified as advances are closed.
In 2009, the Secondary Final Test Certificate relating to the completion of residual work on the Turin-Novara line was signed, representing the final
contractual document for the work on the Turin-Novara line, and the project was closed from an accounting perspective (the Principal Final Test Certificate
had already been signed in 2006, year in which the line was opened to the public).
Net advances for work completed were as follows:
Advances received from
customers
Advances paid
to suppliers
Net advances for work
completed
(€ thousand)
31
December
2011
31
December
2010
31
December
2011
31
December
2010
31
December
2011
31
December
2010
Florence-Bologna line 5,203,837 5,177,313 5,041,543 5,015,484 162,294 161,829
Novara-Milan line 2,276,845 2,268,473 2,194,009 2,185,823 82,836 82,650
Progress payments for work completed 7,480,682 7,445,786 7,235,552 7,201,307 245,130 244,479
Advances relate to amounts received as down payments from the customer T.A.V. S.p.A. at the commencement of the contracts, which are then recovered
as the work progresses. Amounts were as follows:
Contractual advances
received from customers
Contractual advances
paid to suppliers
Net contractual
advances
(€ thousand)
31
December
2011
31
December
2010
31
December
2011
31
December
2010
31
December
2011
31
December
2010
Florence-Bologna line 71 993 69 955 238
Novara-Milan line 5,812 7,914 5,673 7,713 139 201
Contractual advances 5,883 8,907 5,742 8,668 141 239