annual report - FIAT SpA

At 31 December 2010, Total Current receivables include receivables sold and financed through both securitisation
and factoring transactions of €8,089 million (€6,588 million at 31 December 2009) which do not meet IAS 39
derecognition requirements. These receivables are recognised as such in the Group financial statements even though
they have been legally sold; a corresponding financial liability is recorded in the consolidated statement of financial
position as Asset-backed financing (see Note 26). At 31 December 2010, this amount is included in Continuing
Operations for €533 million and in Discontinued Operations for €7,556 million.
Trade receivables
Trade receivables amount to €4,050 million at 31 December 2010, of which €2,259 million classified as Continuing
Operations and €1,791 million classified as Discontinued Operations. The total balance increased by €401 million over
that at 31 December 2009. Excluding translation exchange differences there was an increase of €245 million, almost
all relating to Continuing Operations and in particular to the increase in business volumes in the FGA sector in Brazil.
Trade receivables are shown net of allowances for doubtful accounts of €465 million at 31 December 2010
(€524 million at 31 December 2009), of which €290 million classified as Continuing Operations and €175 million as
Discontinued Operations. Changes in these allowances, which are calculated on the basis of historical losses on
receivables, were are as follows in 2010:
(€ million)
At 31 December
2009 Provision
Use and
other
changes
Change in
the scope of
consolidation
Reclassified
to
Discontinued
Operations
At 31 December
2010
Allowances for doubtful accounts 524 96 (162) 7 (175) 290
The carrying amount of Trade receivables is considered in line with their fair value.
At 31 December 2010, trade receivables of €8 million classified as Continuing Operations were pledged as security for
loans obtained (€14 million at 31 December 2009).
Receivables from financing activities
Receivables from financing activities include the following:
Continuing
At 31 December 2010 At 31 December 2009
Discontinued
(€ million)
Operations Operations Total Total
Retail financing 731 6,219 6,950 6,239
Finance leases 243 812 1,055 1,110
Dealer financing 1,724 3,857 5,581 5,108
Supplier financing
Current financial receivables from jointly controlled financial services
48 - 48 102
entities
Financial receivables from companies under joint control, associates and
12 - 12 14
unconsolidated subsidiaries 49 - 49 55
Other 59 20 79 67
Total Receivables from financing activities 2,866 10,908 13,774 12,695
Total Receivables from financing activities increased by €1,079 million over the period. Excluding translation
exchange gains, arising mainly from the depreciation of the Euro against the US Dollar, the Australian Dollar, the
Canadian Dollar and the Brazilian Real, and write-downs, the item increased by €259 million. There was an increase
of €594 million attributable to Continuing Operations, mainly due to the rise in volumes financed in Brazil, while the
receivables of Discontinued Operations decreased by €335 million, due amongst other things to the gradual
settlement of the loans disbursed in Brazil which fell under the scope of debt relief programmes (see Note 32 in this
respect).
Receivables from jointly controlled financial services entities include financial receivables by the FGA Capital group.
Receivables from financing activities are shown net of an allowance for doubtful accounts determined on the basis of
specific insolvency risks. At 31 December 2010, the allowance referring to Continuing Operations amounts to
€102 million (€450 million at 31 December 2009). Changes in the allowance accounts during the year are as follows:
Fiat Group Consolidated Financial Statements at 31 December 2010 162