Chrysler 2012 Annual Report Download - page 255

Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2012
254
Notes
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 Group’s operating sectors.
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 2012.
Significant accounting policies
Basis of preparation
The 2012 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”).
In compliance with European Regulation 1606 of 19 July 2002, beginning in 2005 the Fiat Group adopted the International Financial
Reporting Standards (“IFRS”), issued by the International Accounting Standards Board (“IASB”), for the preparation of its consolidated
financial statements. On the basis of national legislation implementing that Regulation, those accounting standards were also used to
prepare the separate financial statements of the Parent Company, Fiat S.p.A., for the first time for the year ended 31 December 2006.
The information required by IFRS 1 – First-time Adoption of International Financial Reporting Standards relating to the effects of the
transition to IFRS was provided in an Appendix to the 2006 separate financial statements.
The financial statements are prepared under the historical cost convention (modified where applicable for the valuation of certain
financial instruments), as well as on the going concern assumption. Fiat Group’s assessment is that no material uncertainty exists (as
defined in paragraph 25 of IAS 1) as to its ability to continue as a going concern. That assessment takes into consideration the ongoing
integration with Chrysler Group and the Group’s industrial and financial flexibility.
Format of the financial statements
In consideration of the activities carried out by Fiat S.p.A., presentation of the Statutory Income Statement is based on the nature of
revenues and expenses. The Consolidated Income Statement for Fiat Group is classified according to function, which is considered
more representative of the format used for internal reporting and management purposes and is in line with international practice in the
automotive sector. For the Statement of Financial Position, Fiat S.p.A. has elected the “current and non-current” classification for the
presentation of assets and liabilities. For the Consolidated Statement of Financial Position, a mixed presentation has been elected (as
permitted under IAS 1) with the current/non-current classification applied to assets only. The consolidated financial statements include
Notes to the Statutory
Financial Statements