While in the first place Fiat SpA announced the company’s net loss for the first three months of the year was of 319 million euros, due to some accounting modifications triggered by Chrysler’s acquisition the figure has been revised to 173 million euros ($236 million).
Back in January, when everyone thought that Fiat and the union that had control over the remaining 41.5 % of Chrysler would not reach a settlement in due time and the US automaker would undergo an IPO – initial public offering – CEO Sergio Marchionne triumphantly announced the Italians and the Americans shook hands for $4.35 billion.
Now, as the paperwork and other related accounting changes take effect in preparation for the full merger between the two, there are news to be revealed. Just like it’s the new first quarter loss, which has been revised to take into account a noncash gain of 223 million euros.
The difference actually has no impact on the cash balance – which in other words it’s just a figure in the accounting books – as it is a between a piece of 10% of Chrysler which was covered by call options – exercised by the Italian automaker prior to the buyout and settled subsequently.
Via Automotive News Europe