Chrysler 2012 Annual Report Download - page 148

147
Consolidated
Financial Statements
at 31 December 2012
The main aggregate amounts related to the Group interests in associates measured at cost are as follows:
(€ million) At 31 December 2012 At 31 December 2011
Total assets 35 22
Liabilities 16 8
(€ million) 2012 2011
Net revenues 48 44
Net profit/(loss) 41
Investment in Chrysler
Chrysler has been consolidated on a line-by-line basis effective 1 June 2011 following acquisition of control as defined by IAS 27 –
Consolidated and Separate Financial Statements due to increasing the ownership to 46% (on a fully-diluted basis) on 24 May 2011
(the “Acquisition date”) in addition to the potential voting rights associated with options that became exercisable on the same date. The
acquisition of the control of Chrysler represents a business combination achieved in stages falling under the scope of IFRS 3 - Business
Combinations. During 2011, Fiat recognised the following accounting treatment for the business combination (effects in US Dollars
translated into Euros using the exchange rate of 1.4385 at 1 June 2011):
The previously held 30% ownership interest in Chrysler initially recognised at zero by Fiat was remeasured at fair value at the
Acquisition date and the resulting gain of €1,729 million ($2,487 million) was recognised in profit or loss under Unusual income/
(expense). For the purpose of establishing the fair value of Chrysler in order to calculate that gain, given that no active market price
for Chrysler shares was available, in accordance with IFRS 3, it was deemed reasonable to use the equity value of $8,290 million
(€5,763 million) for Chrysler, implied in the price agreed between Fiat and the U.S. Treasury in early June 2011 for exercising the call
option on the U.S. Treasury’s 6.031% ownership interest (on a fully-diluted basis) in Chrysler.
The identifiable assets acquired and identifiable liabilities assumed have been measured at their Acquisition date fair value, with the
exception of certain contingent liabilities existing prior to acquisition whose value was not determinable, deferred taxes and certain
obligations associated with employee benefits, all of which were recognised in accordance with the applicable standard, as required
by IFRS 3; this measurement process was completed in December 2011.
Non-controlling interests of 54% on a fully-diluted basis, were recognised at €3,112 million ($4,477 million) at 1 June 2011, based
on the above-stated equity value of Chrysler of $8,290 million (€5,763 million) in accordance with paragraph 19(a) of IFRS 3.
Goodwill arising from the acquisition was determined at the end of the measurement period as follows:
At the Acquisition date
($ million) (€ million)
Consideration paid for the acquisition of the additional 16% ownership interest + 1,268 881
Fair value of the previously held ownership interest (30%) + 2,487 1,729
Value attributed to non-controlling interests + 4,477 3,112
Net assets acquired/(net liabilities assumed) - (4,169) (2,899)
GOODWILL = 12,401 8,621