Chrysler 2013 Annual Report Download - page 299

298 Fiat S.p.A.
Statutory Financial
Statements
at 31 December 2013
Notes
Significant changes to investments in subsidiaries during the year were as follows:
capital contributions to certain subsidiaries to strengthen their capital structure in view of operating results, including €1,650 million to
Fiat Group Automobiles S.p.A., €70 million to Editrice La Stampa S.p.A. and €18 million to Teksid Aluminum S.r.l.
the following transactions, which formed part of the continuing rationalization of the real estate services activities and assets:
– demerger of activities and assets from Fiat Partecipazioni S.p.A. and transfer to Fiat Gestione Partecipazioni S.p.A. (subsequently renamed
Fiat Partecipazioni S.p.A.)
– transfer of the shareholding in Fiat Partecipazioni S.p.A. post demerger (subsequently renamed FGA Real Estate Services S.p.A.) to
Fiat Group Automobiles S.p.A. as a contribution to capital
Fiat Partecipazioni’s real estate management and services activities, in addition to assets held on behalf of Fiat S.p.A. and the Group in general,
were demerged, while the activities and assets relating to the automobiles business remained within Fiat Partecipazioni post demerger (now
FGA Real Estate Services S.p.A.). As the transactions involved companies under the direct control of Fiat S.p.A., recognition was based on
existing book values. Accordingly, the increase of approximately €1 million in the investment in Fiat Gestione Partecipazioni S.p.A. following
the demerger and the increase of approximately €425 million in the investment in Fiat Group Automobiles S.p.A. following the contribution to
capital, correspond to the respective pro rata portion of the book value of the investment in Fiat Partecipazioni S.p.A., based on the relative
value of the assets and liabilities demerged in relation to the value of equity as reported in the Fiat Partecipazioni S.p.A. financial statements
prepared for the purposes of the estimate of value of the capital contribution. As described in Note 2, on the basis of that value, a €16 million
impairment reversal was recognized on the investment in Fiat Partecipazioni S.p.A.
Following the reorganization, Fiat Partecipazioni S.p.A. was renamed FGA Real Estate Services S.p.A. and Fiat Gestione Partecipazioni S.p.A.
was renamed Fiat Partecipazioni S.p.A.
Impairment (losses)/reversals includes impairment losses and reversals arising from application of the cost method, as described in Note 2
above.
With regard to Fiat Group Automobiles S.p.A., the estimates and assumptions used in measuring the investment for the purposes of the
financial statements (see “Use of Estimates”) provided reasonable support for the carrying amount recognized at 31 December 2012, increased
to reflect the capital contributions and book value of the investment in Fiat Partecipazioni S.p.A. (now FGA Real Estate Services S.p.A.)
transferred in 2013, as described above. The current carrying amount (€8,389 million at 31 December 2013) reflects impairment losses of
€2,966 million, recognized prior to 2005 and again in 2009, that could potentially be reversed in future periods.
With regard to the investment in Editrice La Stampa (carrying value of €127 million), whose 2013 results reflected difficult trading conditions
in its industry sector and restructuring charges for the subsidiary Publikompass, an assessment of recoverable value was based on the
company’s medium-term business plan and the nature of specific assets, in particular the newspaper La Stampa, as well as its position in the
publishing sector in Italy. Based on the assumptions and estimates made, the carrying amount of the investment at 31 December 2013 was
deemed recoverable.
For the remaining significant shareholdings – in particular, Magneti Marelli S.p.A. and Ferrari S.p.A. (recognized at historic cost) – no indications
of impairment were identified. This also takes into consideration the carrying amounts of equity recognized in the consolidated statement of
financial position, for which the recoverability of assets has already been adequately assessed.