Chrysler 2013 Annual Report Download - page 275

274 Fiat S.p.A.
Statutory Financial
Statements
at 31 December 2013
Notes
will be realized in the course of the normal operating cycle. In addition, the financial services companies only obtain a portion of their funding
directly from the market. The remainder of their funding is obtained through Group treasury companies (included under industrial activities),
which provide funding to both industrial companies and financial services companies within the Group, on the basis of their individual
requirements. The distribution of financial services activities within the Group has no impact on the presentation of financial liabilities for
Fiat S.p.A. However, for the Consolidated Statement of Financial Position, the distribution of those activities means that a classification of
financial liabilities between current and non-current would not be meaningful.
The Statement of Cash Flows is presented using the indirect method.
With regard to the requirements of Consob Resolution 15519 of 27 July 2006 relating to the format of the financial statements, supplementary
Statements of Income, Financial Position and Cash Flows with a breakdown of related-party transactions have been provided separately so
that the overall reading of the principal statements is not compromised.
Intangible assets
Goodwill
Goodwill arising from the acquisition of a company or a business unit is recognized at cost at the acquisition date. Goodwill is not amortized,
but is tested for impairment annually or more frequently if specific events indicate that an impairment loss has occurred. After initial recognition,
goodwill is measured at cost less any impairment losses.
Other intangible assets
Purchased or internally-generated intangible assets are recognized in accordance with IAS 38 – Intangible Assets, where it is probable that the
use of the asset will generate future economic benefits and where the cost of the asset can be determined reliably.
Intangible assets are measured at purchase or manufacturing cost and, for those with a finite useful life, amortized over their estimated useful
life.
Property, plant and equipment
Cost
Property, plant and equipment are stated at acquisition or production cost, net of accumulated depreciation and impairment losses, and are
not revalued.
Subsequent expenditures are only capitalized where they increase the future economic benefits of the asset to which they relate. All other
expenditures are expensed as incurred.
The method and rates used for depreciating assets are provided below.
Leases where the lessor retains substantially all the risks and rewards of ownership of the assets are classified as operating leases. Costs
related to operating leases are recognized on a straight-line basis over the duration of the lease.