annual report - FIAT SpA

Format of the financial statements
Presentation of Fiat S.p.A.’s Income Statement is based on the nature of its revenues and expenses, given the specific
activities carried out. Fiat Group’s Consolidated Income Statement is classified according to function, which is
considered more representative of the format used for management of the business sectors and internal reporting
purposes and is in line with international practice in the automotive sector. For the Statement of Financial Position, Fiat
S.p.A. has elected the “current and non-current” classification for the presentation of assets and liabilities. A mixed
presentation has been selected for the presentation of the Consolidated Statement of Financial Position, as permitted
under IAS 1, with assets only being classified between current and non-current. This election was made in view of the
fact that the Consolidated Statement of Financial Position includes both industrial companies and financial services
companies. In the Consolidated Statement of Financial Position, the portfolios of the financial services companies are
included under current assets, as they will be realized in the course of the normal operating cycle. In addition, the
financial services companies only obtain a portion of their funding directly from the market: the remainder is obtained
from the Group’s treasury companies (included under industrial activities), which provide funding both to industrial
companies and financial services companies within the Group, on the basis of their specific requirements.
Given the distribution of the financial services activities within the Group, any distinction between current and noncurrent
financial liabilities in the Consolidated Statement of Financial Position would not be meaningful. There is no
impact, however, on the presentation of liabilities for Fiat S.p.A.
The Statement of Cash Flows is presented using the indirect method.
In connection with the requirements of Consob Resolution 15519 of 27 July 2006 as to the format of the financial
statements, specific supplementary Income Statement, Statement of Financial Position and Statement of Cash Flows
formats have been added for related party transactions so as not to compromise an overall reading of the statements.
Intangible assets
Purchased or internally-generated intangible assets are recognized as assets in accordance with IAS 38 – Intangible
Assets, where it is probable that the use of the asset will generate future economic benefits and where the costs of the
asset can be determined reliably.
Intangible assets with finite useful lives are measured at purchase or manufacturing cost, net of amortization charged
on a straight-line basis over their estimated useful lives and of any impairment losses.
Property, plant and equipment
Cost
Property, plant and equipment are stated at acquisition or production cost, net of accumulated depreciation and any
impairment losses, and are not revalued.
Subsequent expenditures are capitalized only if they increase the future economic benefits embodied in that asset. All
other expenditures are expensed as incurred.
The assets are depreciated by the method and at the rates indicated below.
Leases where the lessor retains substantially all the risks and rewards of ownership of the assets are classified as
operating leases. Operating lease expenditures are expensed on a straight-line basis over the lease term.
Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful life of an asset as follows:
Buildings
Annual depreciation
rate
3%
Plant 10%
Furniture 12%
Fixtures 20%
Vehicles 25%
Land is not depreciated.
Impairment
The Company reviews, at least annually, the recoverability of the carrying amount of intangible assets, tangible assets
Fiat S.p.A. – Statutory Financial Statements at 31 December 2010 264