annual report - FIAT SpA

At 31 December 2009, Other current assets mainly consisted of Other tax receivables for VAT and other indirect taxes
of €1,595 million, Receivables from employees of €67 million and Accrued income and prepaid expenses of €249
million. At 31 December 2009, this item also included an amount of €593 million due from the tax authorities relating
to eco-incentives in Italy.
At the balance sheet date, the carrying amount of Other current assets is considered to be in line with fair value.
20. Current securities
Current securities consist of short-term or marketable securities which represent temporary investments, but which do
not satisfy all the requirements for being classified as cash equivalents. In particular:
Continuing
At 31 December 2010 At 31 December 2009
Discontinued
(€ million)
Operations Operations Total Total
Current securities available-for-sale 38 24 62 53
Current securities held for trading 147 - 147 164
Total Current securities 185 24 209 217
21. Other financial assets and Other financial liabilities
These items consist of derivative financial instruments measured at fair value at the balance sheet date.
Specifically:
(€ million)
Continuing
Operations
Positive fair value Negative fair value
Discontinue
d Operations Total
Continuing
Operations
At 31 December 2010 At 31 December 2009
Positive
fair value
Negative
fair value
Discontinue
d Operations Total Total Total
Fair value hedges
Interest rate risk - Interest rate
swaps
Interest rate and currency risk -
Combined interest rate and
226 9 235 (7) (11) (18) 244 (51)
currency swaps 15 - 15 - - - 59 -
Total Fair value hedges 241 9 250 (7) (11) (18) 303 (51)
Cash flow hedges
Currency risks - Forward
contracts, Currency swaps and
Currency options
Interest rate risk - Interest rate
81 48 129 (109) (82) (191) 140 (177)
swaps
Interest rate and currency risk -
Combined interest rate and
56 4 60 (78) (9) (87) 59 (101)
currency swaps 5 - 5 - - - 31 -
Other derivatives 2 - 2 - - - 6 -
Total Cash flow hedges 144 52 196 (187) (91) (278) 236 (278)
Derivatives for trading 131 27 158 (61) (45) (106) 97 (135)
Other financial
assets/(liabilities) 516 88 604 (255) (147) (402) 636 (464)
The fair value of derivative financial instruments is determined by taking into consideration market parameters at the
balance sheet date and using valuation techniques widely accepted in the financial business environment. In
particular:
� the fair value of forward contracts and currency swaps is determined by taking the prevailing exchange rate and
interest rates in the two currencies at the balance sheet date;
� the fair value of currency options is determined using valuation techniques based on the Black-Scholes model
or binomial models and market parameters at the balance sheet date (in particular exchange rates, interest
rates and volatility rates);
� the fair value of interest rate swaps and forward rate agreements is determined by using the discounted cash
flow method;
Fiat Group Consolidated Financial Statements at 31 December 2010 164