Chrysler 2008 Annual Report Download - page 304

The amounts recognised in the income statement for post-employment benefits are as follows:
Employee severance indemnity Other Total
(€ thousands) 2008 2007 2008 2007 2008 2007
Service cost
- Current service cost ––1,296 1,478 1,296 1,478
- Net actuarial (gains) losses
recognised during the year ––51 988 51 988
Net loss on reduction –837 –––837
Total current service cost –837 1,347 2,466 1,347 3,303
Interest costs 309 273 699 424 1,008 697
Total cost (income) for
post-employment benefits 309 1,110 2,046 2,890 2,355 4,000
The items Current service cost and Net actuarial (gains) losses recognised during the year are recorded in the income statement
item Personnel costs (see Note 5) if relating to employees and in Other operating costs (see Note 6) if relating to the Chief
Executive Officer.
Interest expense is recognised under the income statement item Financial income/(expense) (see Note 8).
The changes in legislation introduced in 2007 regarding employee severance indemnity led to a reduction in the present value of
the obligation at 1 January 2007 by a total of €1,415 thousand; the gain from this reduction was offset by the immediate
recognition in the income statement of the unrecognised actuarial losses at 31 December 2006, amounting to €2,252 thousand, and
the consequent recognition under Personnel costs (see Note 5) of a net loss on reduction of €837 thousand.
Changes in the present value of the obligation for post-employment benefits are as follows:
Employee severance indemnity Other Total
(€ thousands) 2008 2007 2008 2007 2008 2007
Present value of obligation
at the beginning of the year 6,280 8,412 11,851 13,655 18,131 22,067
Current service cost ––1,296 1,478 1,296 1,478
Interest costs 309 273 699 424 1,008 697
Actuarial (gains)/losses arising during the year (202) 116 733 (2,855) 531 (2,739)
Benefits paid (1,123) (1,297) (540) (614) (1,663) (1,911)
Gains on reduction –(1,415) –––(1,415)
Other changes 1,070 191 4,640 (237) 5,710 (46)
Present value of obligation at the end of the year 6,334 6,280 18,679 11,851 25,013 18,131
Fiat S.p.A. Statutory Financial Statements at 31 December 2008 303