annual report - FIAT SpA

eliminations of transactions and balances between Continuing Operations and Discontinued Operations. More
specifically the approach was as follows:
� the individual line items presented in the income statement under Profit/(loss) from Continuing Operations and
the detail of individual items included in these notes under Profit/(loss) from Discontinued Operations are
presented before the elimination of intragroup transactions between the two demerged operations, while
Profit/(loss) for the year is stated after this elimination. The effects of the elimination of intragroup transactions
on individual income statement items are described in the notes.
� at a statement of financial position level, the consolidation of both Continuing and Discontinued Operations
implies, as discussed in the previous paragraph, the need to eliminate intragroup transactions between these
two sets of operations so that the balances stated in Continuing Operations and in Discontinued Operations
represent the assets and liabilities resulting from transactions with parties outside the Fiat Group taken as a
whole. It follows that these balances may not be representative of the statement of financial position of the Fiat
Group Post-Demerger and the Fiat Industrial Group. Given the size of the amounts involved and their planned
evolution (the timely repayment by the Fiat Industrial Group after the Demerger of all of the net debt granted by
the Fiat Group central treasury), it has been considered appropriate to include as an asset in the statement of
financial position an item consisting of the financial receivables of Continuing Operations due from
Discontinued Operations and as a liability an item consisting of the debt of Continuing Operations payable to
Discontinued Operations; the corresponding debt and financial receivable balances relating to Discontinued
Operations are included in the items Liabilities held for sale and Discontinued Operations and Assets held for
sale and Discontinued Operations respectively: this method of representation allows the assets and liabilities of
Continuing Operations and those of Discontinued Operations to be presented without taking into account the
elimination of intragroup financial receivables and debt outstanding at 31 December 2010. The required
elimination of these balances is made in a separate line added to assets and liabilities in order to present the
total assets and total liabilities of the Fiat Group as a whole in a correct manner.
� all cash flows from Discontinued Operations are reported in the appropriate items for operating activities,
investing activities and financing activities in the Statement of Cash Flows. These items refer exclusively to
cash flows arising from transactions with parties outside the Fiat Group. It follows that the cash flows relating to
Continuing Operations and those relating to Discontinued Operations may not be representative of those of the
Fiat Group Post-Demerger and the Fiat Industrial Group.
Fiat Group Consolidated Financial Statements at 31 December 2010 131