Fiat narrows Q1 loss by 46% after Chrysler-related accounting change
MILAN (Reuters) -- Fiat has revised its first quarter net loss to 173 million euros ($236 million) from a previously announced loss of 319 million euros based on accounting changes related to its buyout of Chrysler.
The change resulted in the recognition of a noncash gain of 223 million euros.
This corresponds to the difference between the fair value of a portion of Chrysler covered by call options that Fiat exercised before the acquisition and the estimated settlement price of the options.
The shares covered by the options amounted to around 10 percent of Chrysler.
The gain has no cash impact and does not affect the final net equity of the group, the automaker said in a statement.
In January, Fiat struck a $4.35 billion deal to gain full control of Chrysler, buying out the 41.5 percent of the company it did not already own.Contact Automotive News