2006 Annual Report - Fiat SpA

Reconciliation of net profit (loss) for the year
(in millions of euros) 2005
Net profit (loss) in accordance with Italian GAAP 223
Measurement of contract work in progress using the percentage of completion method A 28
Employee benefits B 2
Writeback of amortisation charged on deferred costs (excluding the financial expenses of the
“Mandatory Convertible Facility”) C 15
Elimination of reinstatement of treasury stock D (2)
Measurement of derivative financial instruments E 8
Recognition and measurement of financial liabilities (the “Mandatory Convertible Facility”) G (5)
Recognition of financial income from the conversion of the “Mandatory Convertible Facility” H 858
Stock options I (10)
Total adjustments 894
Net profit (loss) in accordance with IAS/IFRS 1,117
Details of the schedules regarding the effects on the Income Statement of the transition to IFRS
The final pages of this Appendix contain explanatory notes on the principal reconciling items between Italian accounting principles
and IFRS, cross-referenced in the following by the use of letters.
Dividends and other income from investments
Reclassifications
(in millions of euros) 2005
from “Income from equity investments” for changes in the format of the Income Statement 8
8
(Impairment losses) reversals on investments
Reclassifications
(in millions of euros) 2005
from “Write-downs of equity investments” for changes in the format of the Income Statement (957)
from “Write-ups of equity investments” for changes in the format of the Income Statement 528
(429)
Adjustments
(in millions of euros) 2005
Treasury stock D (2)
(2)
310 Appendix Transition of the Parent Company Fiat S.p.A. to International Financial Reporting Standards (IFRS)
Gains (losses) on the disposal of investments
Reclassifications
(in millions of euros) 2005
from “Extraordinary income” for changes in the format of the Income Statement 1
from “Extraordinary expenses” for changes in the format of the Income Statement (2)
(1)
Other operating revenues
Reclassifications
(in millions of euros) 2005
from “Changes in contract work in progress” for changes in the format of the Income Statement 13
from “Other revenues and income” for changes in the format of the Income Statement 12
25
Adjustments
(in millions of euros) 2005
Measurement of contract work in progress using the percentage of completion method A 28
28
Personnel costs
Reclassifications
(in millions of euros) 2005
from “Extraordinary expenses” for changes in the format of the Income Statement 11
11
Adjustments
(in millions of euros) 2005
Employee benefits B (3)
Stock options I 10
7
Other operating costs
Reclassifications
(in millions of euros) 2005
from “Raw materials, services, leases and rentals” for changes in the format of the Income Statement 77
from “Amortisation, depreciation and write-downs” for changes in the format of the Income Statement 27
from “Other operating costs” for changes in the format of the Income Statement 41
Other reclassifications –
145
Appendix Transition of the Parent Company Fiat S.p.A. to International Financial Reporting Standards (IFRS) 311