Chrysler 2013 Annual Report Download - page 274

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Fiat S.p.A.
Statutory Financial
Statements
at 31 December 2013
Fiat S.p.A. Statutory
Financial Statements
at 31 December 2013
Notes
Principal activities
Fiat S.p.A. (the “Company”), incorporated in the Republic of Italy, is the parent company of Fiat Group and it holds direct and indirect interests
in the Group’s principal operating companies.
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 for Fiat Group, Fiat S.p.A. has also prepared consolidated financial statements for the year ended 31 December 2013.
Significant accounting policies
Basis of preparation
The 2013 Statutory Financial Statements are the separate financial statements for Fiat S.p.A. They 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 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 both industrial companies
and financial services companies. The financing portfolios of financial services companies are included under current assets, as those assets
Notes to the Statutory Financial Statements