Chrysler 2011 Annual Report Download - page 317

Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2011
Notes
316
At 31 December 2011, bank guarantees and sureties totaling €666 million were given by Fiat S.p.A. to T.A.V. S.p.A. against contractual advances received,
performance of the work and withholding amounts on progress payments. Under agreements entered into with the consortia mentioned and the institutions
issuing the guarantees, €643 million of the total represents the direct liability of the consortia towards the issuing banks and insurance companies, with no
joint responsibility on the part Fiat S.p.A.
More specifically, €262 million in guarantees provided by Fiat S.p.A. to T.A.V. S.p.A. relate to the Bologna-Florence line, €393 million to the Novara-Milan
sub-line and €11 million to the Turin-Novara sub-line (remaining guarantees issued on the final work subject to testing in 2009).
Indemnities assumed directly by the CAV.E.T. consortium amounted to €254 million, while those for the CAV.TO.MI. consortium totaled €378 million for
the Novara-Milan sub-line and €11 million for the Turin-Novara sub-line.
Release of these guarantees is usually linked to the formal testing (Final Test Certificates) required contractually for acceptance of the work by the customer
and expiry of the subsequent two-year period for the technical and functional warranties issued, unless other specific conditions have been agreed.
Finally, for those lines where work was still in progress at year end (Bologna-Florence and Novara-Milan) the lines were formally handed over to T.A.V. S.p.A.
in 2009 and the high-speed line was opened to the public, following the favorable technical opinion received from the Testing Commissions. However, since
at 31 December 2011 (as also at 31 December 2010), activities to complete the ancillary work and cleanup, in addition to the contractual obligation for
final approval of the work (Final Principal and/or Secondary Test Certificates) and to release the bank guarantees were still in progress, from an accounting
perspective the project remained open at that date.
Taxes payable and other debt
The principal items were as follows:
At 31 December 2011, debt payable to Group companies and other related parties for consolidated VAT, totaling €158,260 thousand (€131,408 thousand
at 31 December 2010), related to VAT credits of Italian subsidiaries transferred to Fiat S.p.A. as part of the VAT consolidation, in addition to prior year
amounts due to former subsidiaries transferred to Fiat Industrial Group under the Demerger.
At 31 December 2011, debt payable to Group companies and other related parties in connection with the IRES tax consolidation amounting to €158,271
thousand (€211,576 thousand at 31 December 2010) relates solely to Group companies and represents the remuneration due for the tax losses contributed
by the Italian subsidiaries to the domestic tax consolidation for 2011, the IRES tax credits of the Italian subsidiaries transferred to Fiat S.p.A. as part of the
tax consolidation procedure for 2011 and debt relating to the domestic tax consolidation for 2010.
Taxes payable and other debt are all due within one year and their carrying amount is deemed to approximate their fair value.