Chrysler 2013 Annual Report Download - page 218

217
Consolidated
Financial Statements
at 31 December 2013
The fair value of Other debt is included in Level 2 of the fair value hierarchy and has been estimated with discounted cash flows models. The
main inputs used are year-end market interest rates, adjusted for market expectations on the Group non-performance risk implied in quoted
prices of traded securities issued by the Group and existing credit derivatives on Group liabilities.
31. Related party transactions
Pursuant to IAS 24, the related parties of the Group are entities and individuals capable of exercising control, joint control or significant
influence over Fiat Group and its subsidiaries, companies belonging to the Exor group, (including the CNH Industrial group) and unconsolidated
subsidiaries, associates or joint ventures of the Fiat Group. In addition, members of Fiat Group Board of Directors, Board of Statutory Auditors
and executives with strategic responsibilities and their families are also considered related parties.
The Group carries out transactions with unconsolidated subsidiaries, jointly-controlled entities, associates and other related parties, on
commercial terms that are normal in the respective markets, considering the characteristics of the goods or services involved. Transactions
carried out by the Group with unconsolidated subsidiaries, jointly-controlled entities, associates and other related parties are primarily of those
a commercial nature, which have had an effect on revenues, cost of sales, and trade receivables and payables; in particular, these transactions
relate to:
the sale of motor vehicles to the jointly-controlled entities Tofas-Turk Otomobil Fabrikasi A.S. and FGA Capital group;
the sale of engines, other components and production systems to the jointly-controlled entity Società Europea Veicoli Leggeri-Sevel S.p.A.
and companies of the CNH Industrial group and, for 2012, to the jointly-controlled entity Société Européenne de Véhicules Légers du Nord-
Sevelnord Société Anonyme;
the provision of services, recharges of research costs and the sale of goods to the jointly-controlled entities Fiat India Automobiles Limited
and GAC FIAT Automobiles Co Ltd;
the purchase of commercial vehicles from the jointly-controlled entities Società Europea Veicoli Leggeri-Sevel S.p.A., Tofas-Turk Otomobil
Fabrikasi A.S and, for 2012, Société Européenne de Véhicules Légers du Nord-Sevelnord Société Anonyme;
the purchase of engines from the VM Motori group in 2012 and in the first half of 2013;
the purchase of commercial vehicles from the CNH Industrial group.
The most significant financial transactions with related parties generated Receivables from financing activities of the Group’s financial services
companies due from jointly-controlled entities and Asset-backed financing relating to amounts due to FGA Capital for the sale of receivables
which do not qualify for derecognition under IAS 39. At 31 December 2013 and at 31 December 2012, Receivables from financing activities
due from related parties also included receivables due from CNH Industrial group companies mainly arising from customer factoring provided
by the Group’s financial services companies. On the other hand, Debt due to related parties included certain balances due to CNH Industrial
group companies, mainly relating to factoring and dealer financing in Latin America.
In accordance with IAS 24, transactions with related parties also include compensation payable to Directors, Statutory Auditors and managers
with strategic responsibilities.