13 • 28 CORPORATE FINANCIAL DISCLOSURE: A GLOBAL ASSESSMENTTHE FIAT GROUP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
at December 31, 2001, 2000 and 1999Comments on the above and other differences between the Group’s accounting policies and
U.S. GAAP are as follows:
(a)Earnings per share—The approximate net income (loss) per share amounts in accordance
with U.S. GAAP for each of the years ended December 31, 2001, 2000 and 1999 have been calculated
in accordance with the provisions of SFAS No. 128, “Earnings Per Share” (“SFAS No. 128”), using the
method for two-class ordinary shares and participating securities, as prescribed therein. Under this
method for the earnings per share computation, income remaining after dividends allocated to ordinary,
preference and savings shares was allocated equally to the aggregate weighted average number of ordi-
nary, preference and savings shares outstanding (approximately 542 million in 2001, 549 million in
2000 and 546 million in 1999). Dividends allocated to ordinary, preference and savings shares, in the
aggregate, were 178 million euros in 2001, 352 million euros in 2000, and 350 million euros in 1999.
The net income per share amounts in accordance with Italian GAAP have been determined by
reference to the provisions of IAS No. 33, “Earnings Per Share” (“IAS No. 33”). The provisions of IAS
No. 33 and, accordingly, the method for calculating net income per share amounts in accordance
therewith, are substantially the same as those of SFAS No. 128 previously described.
Both SFAS No. 128 and IAS No. 33 require the presentation of both basic and diluted earnings
per share. Due to the limited number of stock options outstanding during the years ended December
31, 2000 and 1999, the dilutive effect of stock options calculated using the treasury stock method has
resulted in diluted earnings per share data being the same as basic earnings per share amounts for those
years. As the year ended December 31, 2001 resulted in a net loss, any effect from stock options out-
standing would result in reducing the loss per share; therefore diluted earnings per share is reported as
being the same as basic earnings per share amounts for that year.
(b)Estimates—The preparation of financial statements in conformity with U.S. GAAP requires
explicit statement of the fact that, as under Italian GAAP, management is required to make estimates
and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from such estimates.
(c)Translation of financial statements of subsidiaries operating in highly inflationary economies—
The financial statements of the subsidiaries operating in highly inflationary economies have been ad-
justed in accordance with inflation accounting procedures (consistent with IAS No. 29, “Financial Re-
porting in Hyperinflationary Economies”), restating historical costs on the basis of indices deemed
representative of the real change in the purchasing power of the local currencies; consistent with this
procedure, the financial statements thus restated are translated into the Group’s reporting currency at
year-end exchange rates. Economies are defined as being highly inflationary when cumulative inflation
exceeds 100% over the latest three-year period. The Group’s inflation accounting policy and procedures
differ from the U.S. GAAP requirements of SFAS No. 52, “Foreign Currency Translation” with respect to
the translation of financial statements of entities operating in highly inflationary economies. Under U.S.
GAAP, the translation of financial statements of subsidiaries operating in highly inflationary economies is
based on local currency financial statements on a historical cost basis after reversing all adjustments
made to take account of inflation. These financial statements are then translated into the Group’s report-
ing currency by applying historical exchange rates to non-monetary items and current exchange rates to
monetary items. All exchange adjustments arising in this remeasurement process are recorded in income.
As permitted by Item 18 of Form 20-F, the differences between accounting for operations in
highly inflationary economies using international and U.S. accounting principles have not been pre-
sented in the reconciliations to net income and stockholders’ equity. Accordingly, the amounts pre-
sented for such periods, while in conformity with International Accounting Standards and Italian GAAP,
are not in conformity with U.S. GAAP.
(d)Revaluation of fixed assets—In 1983 and prior years, Fiat revalued certain property, plant
and equipment to amounts in excess of historical cost, as permitted by law (see “Principles of consoli-
dation and significant accounting policies”). Additionally, in 1991, Italian legislation (Law 413/91) re-
Exhibit 13.13. (continued)