Develop your own marketing communication model derived from academic Assignment - 1

Build up your own showcasing correspondence model got from scholarly research. Utilize this model to break down the Marketing Communications Campaign of your picked FMCG (Nescaf) brand - Assignment Example Promoting interchanges, as characterized by Egan (2007, p. 1), is â€Å"the implies by which a provider of products, administrations, values as well as thoughts speak to themselves to their intended interest group with the objective of invigorating exchange prompting a superior business or other relationships†. Showcasing correspondences is supposed to be acceptable when it considers three essential components for example crowd, message and media (Dahlã ©n, Lange and Smith 2009). These three components are interlinked and the choice with respect to promoting specialized apparatuses must consider every one of them three. Advertising specialized instruments are otherwise called showcasing correspondences blend or limited time blend. Egan (2007, p. 17) characterized these instruments as â€Å"tools utilized in showcasing correspondences, for example, publicizing, deals advancement, advertising, individual selling, direct promoting etc†. Presently the organization needs to choose how well it can coordinate these devices so as to guarantee they get a positive criticism from the entire correspondence process. Correspondence process is introduced underneath. There are a few showcasing correspondences models created after much research on the impact of interchanges on item promoting. Every one of them attempt to investigate various aspects on how buyers see data gave to them by the advertiser and how they respond to it. Since positive response/input upgrade company’s benefits subsequently conveying an item in a correct way to the intended interest groups is significant. Following head examines the advertising correspondence models in detail with specific accentuation on two models, Strong’s AIDA model and Mindscape of Integrated Marketing Communications Model (expanded form introduced by Hartley and Pickton 2010). Promoting interchanges which is likewise alluded to as Integrated Marketing Communications is â€Å"a procedure of utilizing a wide range

Clean, Well-Lighted Place tone and style

Hemingway has a particular composing style it could be said that he picks his words cautiously. He is monetary in his promise decision, so perusers must contemplate the modifiers and qualifiers he utilizes, as he conveys them infrequently. His style is basic and curt, yet compelling. Through his utilization of straightforward words and short sentences, he conveys the message intensely and point on instead of utilizing engaging, extravagant language (as what his Victorian forerunners used).He is additionally supposed to be the aster of exchange, utilizing this mode to portray and describe the majority of the story, as was clear in â€Å"A Clean Well-Lighted Place†. Beside the style and exchange, something else to observe about the story is that his tone is impartial and dispassionate. The author himself doesn't remark on or Judge his characters by any means. In the line â€Å"†You ought to have executed yourself last week,† he [the waiter] said to the hard of heari ng man. Hemingway didn't include any extra descriptive words or verb modifiers for transient like for instance as opposed to composing, â€Å"he said brutally' or â€Å"he said remorselessly he Just utilized a straightforward â€Å"he said†. The tone additionally adds to the topic of confronting nothingness with respect. The storyteller is discussing obscurity in an isolates, passionless way which gives the peruser the Impression that the nothingness influences the server enough for him to make reference to it, however his tone proposes he is sufficiently striking to confront the issue in noble, cavalier way; I. E. All things considered, he said to himself, It's most likely just sleep deprivation.

Use Mantra Meditation for Stress Relief

Use Mantra Meditation for Stress Relief Meditation Print Use Mantra Meditation for Stress Relief By Elizabeth Scott, MS twitter Elizabeth Scott, MS, is a wellness coach specializing in stress management and quality of life, and the author of 8 Keys to Stress Management. Learn about our editorial policy Elizabeth Scott, MS Updated on January 27, 2020 How Stress Impacts Your Health Overview Signs of Burnout Stress and Weight Gain Benefits of Exercise Stress Reduction Tips Self-Care Practices Mindful Living Wendy Connett / Moment / Getty Images Mantra meditation is one of the simplest and easiest-to-learn meditation techniques. Like other forms of meditation, it can change your stress levels at the moment with a single session or can change the way you manage stress from now on with repeated practice.  And it has the benefit of being simple to learn and customize to meet your specific needs for stress management. Benefits of Mantra Meditation If you are reading this, you have probably already heard that meditation is a powerhouse of a stress reliever because of all of the ways it can improve your outlook and overall health.  Meditation has been linked to a reduction of chronic stress as well as decreases in heart rate and blood pressure, an increase in immune system functionality, and many other benefits. Mantra meditation, in particular, has also been linked with a decrease in intrusive thoughts, an increase in meaning and quality of life in HIV patients.  It has been linked to reduced stress, anxiety and anger and increases in quality of life in nurses.  Another study on veterans found that mantra meditation reduces the occurrence of intrusive thoughts and minimizes stress as well.  Many people find that mantra meditation is simpler to master when they are starting out because it provides an empowering focal point; many people find it difficult to keep redirecting their thoughts to the present moment and instead feel that it is easier to have something more specific to grasp onto. The bottom line is, with mantra meditation, you may feel less stressed after one session. With repeated practice, you may find yourself less reactive to future stress. Practicing mantra meditation is easy. Heres how: Set Aside a Few Minutes and Get Into a Comfortable PositionAt first, its best to have a quiet room, free of distractions. With repeated practice, you may find yourself able to practice mantra meditation anywhere and under more chaotic circumstances.Choose a Mantra for MeditationA mantra is a word or phrase that you repeat to yourself. It can be a more classically significant spiritual word like the Hindu, Aum, (aka Om) or it can be a word or phrase like, Calm or I am at peace. The words or sounds you choose arent important as long as they are simple and comfortable for you to repeat.Close Your Eyes and Repeat Your Mantra to YourselfAs you do so, try to focus only on the sound and feel of your mantra and nothing else. If you find other thoughts creeping into your head, thank yourself for noticing, and gently redirect your attention to your mantra.Continue for Several MinutesThats it. Just continue to repeat your mantra and focus on the sound and the way it feels to make the sound. Red irect your attention away from distractions, and back to your mantra. You can start with 5- or 10-minute sessions and work up to 20 or 30; with mantra meditation, any practice time is better than none. Tips Try to practice mantra meditation anywhere from several times per week to twice a day. Many people find it easiest to try for a quick session once a day so it becomes a regular habit but doesnt take excessive amounts of time.You can repeat the sound silently in your head if youre more comfortable with that. Some people find this to be easier and it makes them less self-conscious if they live with others.You can also do mantra meditation while walking to combine exercise with meditation. Just use your mantra rhythmically as you step.

The Impact of Media on Teens - 844 Words

The media’s impact has a way of shaping the teenage mind in a ways that are very effective to their behavior. This behavior is not just seen with teens that live in harsh neighborhoods. These behaviors are seem in teens everywhere from every background and culture. Violence in today’s society is looked at as such a normal thing but it really has a huge effect on the violence that teenager encounter as well as a change in their cultural beliefs. Teen culture is changing in big ways as the media continues to provide more ways to show and encourage violence. The impact of the media’s view on violent crimes has a strong impact on teen culture and teen violence. Teens are learning and adapting to the ways of being more violent regardless of there background due to the impact of the medias influence. The media pushes violent throughout all aspects. Even kid’s television shows that are for entertainment purposes display sometime of violence unless it is educatio nal. The media does not just influence violence through television shows but it is encouraged through the uses of video games, music, and movies. This influence that the media hold is more likely seen in teenagers. Teens are more likely to be pressured to go shoot up a school because they believe that it will solve the answer to their bullying situation or it will change the that they might not have much but the fear over others gives them more power than they could ask for. The teen group is a sufficient group becauseShow MoreRelatedThe Impact of Media on Teens3822 Words   |  16 PagesThe Impact of the Media on Teenagers Ashley J. Sanchez-Menjivar Mr. Tramble HSP3M1-01 Friday, December 14, 2012. Many adolescent teens are exposed to numerous encounters with the media that have a negative impact on their judgments, actions, and opinions. This is referring to the video games, movies, television shows, and magazines that surround them everyday. We begin to discover how it effects their decisions and behaviors. Adolescence is a time when young people are identifying importantRead MoreThe Impact Of Media On Teens And Children1477 Words   |  6 Pagesstations, portraying sexual intercourse as acceptable behavior. They are found all over the media today. Not only is this type of media affecting the minds of teenagers, but also the young minds of our nation’s children. Media is spewing misleading information to the minds of our teens and children; abstinence is no longer being pursued. Sexual intercourse is more common now than it was decades ago. Our teens need to be taught the truth of these misconceptions and myths, because we are in a new eraRead MoreThe Impact of Media on Teens Essay2207 Words   |  9 PagesThe media has always been a big impact on society, influencing people in so many ways. It keeps us in on the latest fashion trends, gadgets, and what is considered â€Å"in†. The media can be considered either be considered positive and negative, but that can usually be determined by society. The group that is usually very heavily influenced on the media are teens. They tend to believe whatever the media says and displays, causing them to behave, dress, speak, talk, and think in a different manner. EvenRead MoreImpact of Social Media on Teens998 Words   |  4 PagesIntroduction The surfacing of social media network changed the world ways of interaction by storm, leading to more revolution than predicated. It has brought different people from different homes conversation and discussion at one home. But its effects are more felt in many homes across the world and the United States is not excluded. A lot of concerns have been voiced about the social media network sites taking over in our lives. Above all, the major issue that has been overlook is the changingRead MoreThe Impact Of Social Media On Teen Substance1033 Words   |  5 Pagesteenagers get into drugs and alcohol (Impact of Social Media on Teen Substance). The one thing parents do not think about at to why their teenager is involved in drugs and alcohol is social media, and it could be a big reason (Impact of Social Media on Teen Substance). Parents talk to their children on how to make the right decision related to drugs and alcohol, but forget they need to address how to make right decisions on so cial media (Impact of Social Media on Teen Substance). It was found that teenagersRead MoreEssay on The Positive and Negative Impact of Media on Teens1174 Words   |  5 PagesEach day, the importance of mass media is increasing among society. More people are becoming dependent on the media and are being affected by it unknowingly. â€Å"Over the past five years, the time kids spend using media has increased significantly† (Medias Grip on Tweens and Teens). â€Å"According to the Pew Internet and American Life Project, 87 percent of teens with cell phones use them for texting, sending an average of 50 messages a day. Its not just teens; the same study showed that 72 percent ofRead MorePositive Adult Role Models1038 Words   |  4 Pagesworld where teens are doing drugs, pressuring their peers, and trying to be just like the models in magazines. Unfortunately, that’s the world we live in today. What do these teens need? They need positive adult role models. It is i mportant for a teen to be influenced by positive adult role models while growing up; because if they don’t have positive adult role models, teens can be influenced by negative media, negative peer pressure, and teen drug use. The first reason why teens need positiveRead MoreSocial Media s Impact On Emotional Health1067 Words   |  5 Pagestoday fit for social support? Social media has taken our sociality to a new level of connection. In some way we are closer than we ever been but in other ways we have lost that social support. This can affect the emotional health of people it great ways. First is the biggest impact that social media has and that is on teens and how they get their social support from twitter and snap chat rather than going to someone face to face. Another way social media can impact emotional health is through onlineRead MoreThe Effects Of Technology On Teen s Brain Development1708 Words   |  7 Pageselectronics. As the use of technology increases, concerns are growing about the amount of screen time teens should be exposed to, and if the use of technology can affect a teen’s brain development. The American Academy of Pediatrics, or the AAP, is considering raising the two hou r screen time limit to four hours because of the growing use of electronics in our day and age. However, because teens’ brains develop differently than adults, parts of their brains are not mature enough. Some parts, suchRead MoreCause Of Social Media Essay702 Words   |  3 PagesCAUSE OF SOCIAL MEDIA Recently, social media become hot topic in this era. Social media is used by children, adults, and many people. Social media is something people can communicate with other people when there is have a internet. Social media brings some impact into human life. Social media is channels or means of social interaction online in cyberspace (internet). Social media users communicate, interact, send messages, and share, and build networks (romelteamedia). Until now, all on this

Essay on ECO/372 Week 3 Learning Team Assignment - 1255 Words

Team C Week 3 Learning Team Assignment ECO/372 Team C Week 3 Learning Team Assignment In our team paper, we are going to evaluate, assess, and apply various economic situations from a Keynesian and Classical perspective. As the global markets increase and decrease over time careful modifications of the economy of the United States need to be made. After a comprehensive assessment of the current economic situation team C has agreed, that the Current State of Interest Rates, unemployment, exceptions, and consumer incomes and spending are the distinct factors that have an influence on economic forecasting and growth. The US is still recovering from the financial crisis there is still some skepticism, despite recent signs in†¦show more content†¦Another problem that will add to the rising unemployment rates according to David Pinsen in his article named why is the unemployment rate so high â€Å"China has devalued their currency so that they could create a job market boom.† If the cost to do business in the United States keeps rising we will lose more bus iness overseas. Economically there are many challenges we face as a country with our current fiscal policies. Since the 2008 financial crisis, there have been many debates in regards to how we should go about managing our financial system. Unfortunately, we as team believe that in order for us to stabilize our nation financial issues we are going to have to make restrictions in certain channels, which might affecting our way of life. One area needing attention is government spending and how it has to be reduced, and this would have a ripple effect in certain areas. Our elected officials will have to come to a compromise and determine which sectors are costly and can be reduced. Another idea would be to avoid increasing the tax rates as this will help â€Å"minimize economic distortions that shrink the level of production† (Baker III, 2009, p. 1). To promote economic growth, our team recommends that we take the approach of increasing the corporate tax base and decreasing the corporate tax rates. Other suggestion is to reduce the deductibility of state and local taxes. Other reforms that could be lookedShow MoreRelatedeco3721430 Words   |  6 Pagesï » ¿ Syllabus School of Business ECO/372 Version 4 Principles of Macroeconomics Copyright  © 2012, 2008, 2007, 2006 by University of Phoenix. All rights reserved. Course Schedule: Workshop 1 = January 30, 2014 Workshop 2 = February 6, 2014 Workshop 3 = February 13, 2014 Workshop 4 = February 20, 2014 Workshop 5 = February 27, 2014 Instructor contact information: Jack Abbott Cell phone, 714-337-6092 Email, jbabbott@cox.net Course Description This course provides studentsRead MoreEmployee Engagement and CSR: TRANSACTIONAL, RELATIONAL, AND DEVELOPMENTAL APPROACHES12982 Words   |  52 Pagesdisadvantaged; participate in disaster relief; build community playgrounds or habitat-for-humanity housing; and so on—along with more â€Å"skill-based† engagement efforts wherein employees use their technical and commercial know-how to address social concerns.3 On the operational front, more employees today are engaged in sustainable supply chain management, cause-related marketing, and green business initiatives—in effect, doing social responsibility on-the-job. Meanwhile, leading firms have launched globalRead MoreProject Mgmt296381 Words   |  1186 PagesLeadership skills G.1 Project leadership 10.1 Stakeholder management Chapter 11 Teams Chapter 3 Organization: Structure and Culture 2.4.1 Organization cultures [G.7] 2.4.2 Organization structure [9.1.3] 9.1.1 Organization charts 1.4.4 Project offices Chapter 4 9.2 Building the team (.1.3) [3.5.3] [App G.2 Building teams] 9.4 Managing the team 9.3.2 Team building activities 9.2.4 Virtual teams 9.3.3.1 Team performance [9.4.2.2] 9.4.2.3 Conflict management 9.3.2.6 Recognition and awards Read MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pages658.3—dc23 2011038674 10 9 8 7 6 5 4 3 2 1 ISBN 10: 0-13-283487-1 ISBN 13: 978-0-13-283487-2 Brief Contents Preface xxii 1 2 Introduction 1 What Is Organizational Behavior? 3 The Individual 2 3 4 5 6 7 8 Diversity in Organizations 39 Attitudes and Job Satisfaction 69 Emotions and Moods 97 Personality and Values 131 Perception and Individual Decision Making 165 Motivation Concepts 201 Motivation: From Concepts to Applications 239 3 The Group 9 10 11 12 13 14 15 FoundationsRead MoreLibrary Management204752 Words   |  820 PagesLibrary and information center management / Robert D. Stueart and Barbara B. Moran. — 7th ed. p. cm. — (Library and information science text series) Includes bibliographical references and index. ISBN 978–1–59158–408–7 (alk. paper) ISBN 978–1–59158–406–3 (pbk. : alk. paper) 1. Library administration—United States. 2. Information services— United States—Management. I. Moran, Barbara B. II. Title. Z678.S799 2007 025.1—dc22 2007007922 British Library Cataloguing in Publication Data is available. CopyrightRead MoreContemporary Issues in Management Accounting211377 Words   |  846 Pagesavailable Typeset by SPI Publisher Services, Pondicherry, India Printed in Great Britain on acid-free paper by Antony Rowe Ltd., Chippenham, Wiltshire ISBN 0–19–928335–4 978–0–19–928335–4 ISB N 0–19–928336–2 (Pbk.) 978–0–19–928336–1 (Pbk.) 1 3 5 7 9 10 8 6 4 2 3 FOREWORD ‘ Michael Bromwich is an exemplar of all that is good about the British tradition of academic accounting. Serious in intent, he has striven both to illuminate practice and to provide ways of improving it. Although alwaysRead MoreOrganisational Theory230255 Words   |  922 Pagesorganization studies. Mihaela L. Kelemen, Professor of Management Studies, Keele University, UK An unusually rich and deep philosophical book on organization theory with several new thinkers and ideas. Pedagogically a well-structured book with many clear learning objectives, cases, examples and good summaries for every chapter. Professor Martin Lindell, Hanken Business School, Swedish School of Economics and Business Administration, Finland This book makes it easier to understand the current stand of organizationRead MoreStrategic Marketing Management337596 Words   |  1351 Pagesstructure 1 Introduction 1.1 1.2 1.3 1.4 1.5 1.6 Learning objectives The nature of marketing The management process Strategic deci sions and the nature of strategy The marketing/strategy interface Summary xi xiii 1 3 3 7 11 19 37 41 43 45 45 50 53 70 71 75 77 79 79 80 81 86 88 89 101 102 104 107 109 Stage One: Where are we now? Strategic and marketing analysis 2 Marketing auditing and the analysis of capability 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Learning objectives Introduction Reviewing marketing effectivenessRead MoreNokias Human Resources System144007 Words   |  577 PagesSection 15(d) of the Exchange Act: 5.375% Notes due 2019 and 6.625% Notes due 2039 Indicate the number of outstanding shares of each of the registrant’s classes of capital or common stock as of the close of the period covered by the annual report. Shares: 3 744 956 052. Indicate by check mark if the registrant is a well ­known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ≠¤ No n If this report is an annual or transition report, indicate by check mark if the registrant is not requiredRead MoreMedicare Policy Analysis447966 Words   |  1792 Pagesassembled, 3 SECTION 1. SHORT TITLE; TABLE OF DIVISIONS, TITLES, rmajette on DSK29S0YB1PROD with BILLS 4 5 AND SUBTITLES. (a) SHORT TITLE.—This Act may be cited as the 6 ‘‘Affordable Health Care for America Act’’. VerDate Nov 24 2008 12:56 Oct 30, 2009 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3962.IH H3962 2 1 2 (b) TABLE TITLES.—This OF DIVISIONS, TITLES, AND SUB- Act is divided into divisions, titles, and 3 subtitles

Citibank Performance Evaluation Case Study Free Essays

Annual Report Consolidated and Statutory Financial Statements at December 31, 2006 101st fiscal year Fiat S. p. A. We will write a custom essay sample on Citibank Performance Evaluation Case Study or any similar topic only for you Order Now Financial Statements at December 31, 2006 234 Financial Review of Fiat S. p. A. 238 Income Statement 239 Balance Sheet 240 Statement of Cash Flows 241 Statement of Changes in Stockholders’ Equity I am enough of an artist to draw freely upon my imagination. Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world. Albert Einstein 242 Income Statement pursuant to Consob Resolution No. 5519 of July 27, 2006 243 Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 244 Notes to the Financial Statements 301 Appendix – Transition of the Parent Company Fiat S. p. A. to International Financial Reporting Standards (IFRS) Financial Review of Fiat S. p. A. The financial statements illustrated and commented on in the following pages have been prepared on the basis of the company’s statutory financial statements at December 31, 2006 to which reference should be made. In compliance with European Regulation no. 606 of July 19, 2002, starting from 2005 the Fiat Group has adopted International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) in the preparation of its consolidated financial statements. On the basis of national laws implementing that Regulation, starting from 2006 the Parent Company Fiat S. p. A. is presenting its financial statements in accordance with IFRS, which are reported together with comparative figures for the previous year. Operating Performance Specifically: Personnel and operating costs, totalling 199 million euros, comprise 58 million euros in personnel costs (60 million euros in 2005), and 141 million euros in other operating costs (121 million euros in 2005), which include the costs for services, amortisation and depreciation and other operating costs. These costs increased as a whole by 18 million euros from 2005 as a result of non-recurring charges. In 2006, the average headcount was 140 employees, compared with an average of 133 employees in 2005. The company’s Income Statement is summarised in the following table: Investment income – Dividends – (Impairment losses) reversals – Gains (losses) on disposals Personnel and operating costs net of other revenues Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Income taxes Net income Personnel and operating costs net of other revenues total 120 million euros, compared with 109 million euros in 2005. I The Parent Company earned net income of 2,343 million euros in 2006, 1,226 million euros higher than in 2005 when the result included net non-recurring income of 1,714 million euros. (in millions of euros) Business Solutions S. p. A. (for a total of 147 million euros), net of the revaluation of the investments held in Fiat Netherlands Holding N. V. (376 million euros due to the positive performance of the CNH and Iveco subsidiaries), Magneti Marelli Holding S. p. A. (144 million euros) and minor companies. 2006 2005 2,461 62 2,099 – (120) – (24) – 26 2,343 (424) 8 (431) (1) (109) 1,133 (62) 858 (279) 1,117 Investment income totals 2,461 million euros compared with investment expense of 424 million euros in 2005 and consists of dividends received during the period and reversal of impairment losses (net of write-downs) of investments. Specifically: Dividends total 362 million euros and were received from the subsidiaries IHF – Internazionale Holding Fiat S. A. (259 million euros), Fiat Finance S. p. A. (75 million euros) and other companies. In 2005 dividends received from investments totalled 8 million euros. I Impairment loss reversals (net of write-downs) of 2,099 million euros resulted from the revaluation of the investments in the subsidiaries Fiat Partecipazioni S. p. A. (1,388 million euros mainly connected to Fiat Auto), Iveco S. p. A. (946 million euros) and Fiat Netherlands Holding N. V. (96 million euros connected to CNH), all written-down in previous years, net of the impairment loss recognised on the investment in Comau S. p. A. (330 million euros). I Other revenues , totalling 79 million euros (72 million euros in 2005), principally refer to the change in contract work in progress (agreements between Fiat S. p. A. and Treno Alta Velocita – T. A. V. S. p. A. ), which is measured by applying the percentage of completion to the total contractual value of the work, to royalties for the use of the Fiat trademark, calculated as a percentage of the revenues generated by the Group companies that use it, and the services of executives at the principal companies of the Group. The increase from 2005 is mainly attributable to higher charges for the use of the trademark. No Income (expenses) from significant non-recurring transactions is reported in 2006. In 2005 a gain of 1,133 million euros (net of related costs) was recorded on the transaction regarding the termination of the Master Agreement with General Motors. In 2006, there were net financial expenses of 24 million euros, arising from the interest charges on the Company’s debt, which was partially offset by the gain resulting from derivative financial instruments. In 2005 there were net expenses of 62 million euros mainly arising from the interest expenses connected with the Mandatory Convertible Facility. No Financial income from significant non-recurring transactions is reported in 2006. In 2005 this item included income of 858 million euros resulting from the capital increase of September 20, 2005 with the simultaneous conversion of the Mandatory Convertible Facility. The income represents the difference between the subscription price of the new shares issued and the stock market price of the shares at the subscription date, net of issuance costs. I In 2005, net impairment losses recognised on investments totalled 431 million euros, mainly due to losses from the investments in Fiat Partecipazioni S. p. A. (811 million euros connected mainly to the losses of Fiat Auto), Teksid S. p. A. , Comau S. p. A. and 234 Financial Review of Fiat S. p. A. The income tax revenue of 26 million euros is the net result of the remuneration for the tax loss brought into the national tax consolidation by Fiat S. p. A. in 2006 to offset the income reported by the Group’s Italian companies, and the IRAP charge recognised for the period. Income tax expenses of 279 million euros in 2005 consisted of the reversal of deferred tax assets of 277 million euros, recognised in the financial statements at December 31, 2004 in relation to the settlement subsequently made with General Motors for the termination of the Master Agreement. Financial Review of Fiat S. p. A. 235 Balance Sheet Highlights of the Parent Company’s Balance Sheet are illustrated in the following table: (in millions of euros) Non-current assets – of which: Investments Working capital Total net invested capital Stockholders’ equity Net debt (liquid funds) At December 31, 2006 At December 31, 2005 14,559 14,500 167 14,726 10,374 4,352 5,168 5,118 303 5,471 7,985 (2,514) Current financial payables consist of the overdraft with the subsidiary Fiat Finance S. p. A. and short-term financing received from that company, as well as payables to factoring companies for advances on receivables. Non-current financial payables consist almost entirely of loans repayable in the 2010-2013 period granted by the subsidiary Fiat Finance S. p. A. at market rates as part of the recapitalisation of subsidiaries discussed above. At December 31, 2005 financial receivables related to short-term financing of 2,700 million euros granted to the subsidiary Fiat Finance S. p. A. and due in 2006, and to cash deposited on the current account held with that company. For a more complete analysis of cash flows, reference should be made to the Statement of Cash Flows set out on the following pages as part of the statutory financial statements of the Parent Company Fiat S. p. A. Reconciliation between the Parent Company’s equity and its result for the year with those of the Group Non-current assets mainly include investments in the relevant subsidiaries of the Group. The net increase of 9,382 million euros in investments as compared to December 31, 2005 stems from net write-ups arising from the reversal of previously recognised impairment losses and recapitalisations of 6,361 million euros carried out during the year in the subsidiaries Fiat Partecipazioni S. p. A. (6,000 million euros), Fiat Netherlands Holding N. V. (121 million euros) and Comau S. p. A. (240 million euros), in order to re-balance the equity structure inside the Group and cover losses, as well as the re-purchase from Mediobanca S. . A. of 28. 6% of the shares of Ferrari S. p. A. (893 million euros) upon exercise of the call option provided for in the 2002 agreements, which brought the investment to an 85% stake. Working capital, which totalled 167 million euros, consists of inventories net of advances received, trade, tax and employee receivables/payables, other receivables/payables and pro visions. The 136 million euro decrease over December 31, 2005 is mainly attributable to the refund of VAT receivables by the Tax Authorities. Stockholders’ equity at December 31, 2006 totalled 10,374 million euros, reflecting an increase of 2,389 million euros as compared to December 31, 2005 due to the positive result of the year (2,343 million euros) and other minor changes (including 28 million euros resulting from marking to market the fair value carrying amount of the Mediobanca shareholding). Pursuant to the Consob Communication of July 28, 2006, set out below is a reconciliation between the Parent Company’s equity at December 31, 2006 and its result for the year then ended with those of the Group (Group interest). (in millions of euros) Stockholders’ equity at December 31, 2006 Financial Statements of Fiat S. p. A. Elimination of the carrying amounts of consolidated investments and the respective dividends from the financial statements of Fiat S. p. A. Elimination of the reversal of impairment losses (net of recognised impairment losses) of consolidated investments Equity and results of consolidated subsidiaries Consolidation adjustments: Elimination of intercompany profits and losses on the sale of investments Elimination of intercompany profits and losses in inventories and fixed assets and other adjustments Consolidated financial statements (Group interest) 2006 Net result 10,374 2,343 14,211) – 13,404 (346) (2,099) 1,229 – (205) 9,362 (41) (21) 1,065 For a more complete analysis of the changes in stockholders’ equity, reference should be made to the relevant table set out in the following pages as part of the statutory financial statements of the Parent Company Fiat S. p. A. Net debt totalled 4,352 million euros at December 31, 2006 compared with net liquid funds of 2,514 million euros at December 31, 2005. The use of the liquid funds balance at the beginning of the year and the subsequent accumulation of debt are the consequence of the previously mentioned recapitalisations of subsidiaries and purchase of Ferrari S. . A. shares. A breakdown of net debt is illustrated in the following table: (in millions of euros) Financial receivables, cash and cash equivalents Current financial payables Non-current financial payables Net debt (net liquid funds) 236 Financial Review of Fiat S. p. A. At December 31, 2006 At December 31, 2005 (85) 1,627 2,810 4,352 (3,076) 557 5 (2,514) Financial Review of Fiat S. p. A. 237 Income Statement (in euros) Dividends and other income from investments (Impairment losses) reversal of impairment losses of investments Gains (losses) on the disposal of investments Other operating income Personnel costs Other operating costs Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Result before taxes Income taxes Result from continuing operations Result from discontinued operations Net result Balance Sheet (*) Note 2006 2005 (1) 362,418,522 2,099,350,000 425,380 79,238,202 (57,899,516) (141,006,254) – (24,846,809) – 2,317,679,525 (25,695,447) 2,343,374,972 – 2,343,374,972 7,713,904 (430,788,686) (1,300,134) 72,853,610 (60,027,274) (121,360,013) 1,133,110,377 (61,685,499) 857,636,269 1,396,152,554 278,827,554 ,117,325,000 – 1,117,325,000 (2) (3) (4) (5) (6) (7) (8) (9) (10) (*) Pursuant to Consob resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Income Statement of Fiat S. p. A. are included in the specific income statement schedule reported in the following pages and also provided in the comments of the single items and in Note 30. (*) (in euros) ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total Non-current assets Current assets Inventories Trade receivables Current financial receivables Other current receivables Cash and cash equivalents Total Current assets Assets held for sale TOTAL ASSETS STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result Total Stockholders’ equity Non-current liabilities Provisions for employee benefits and other non-current provisions Non-current financial payables Other non-current liabilities Deferred tax liabilities Total Non-current liabilities Current liabilities Provisions for employee benefits and other current provisions Trade payables Current financial payables Other payables Total Current liabilities Liabilities held for sale TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES Note At December 31, 2006 At December 31, 2005 (11) 771,530 37,252,689 14,499,594,748 20,134,319 1,573,473 – 14,559,326,759 675,599 39,658,553 5,117,531,801 5,335,175 4,501,747 – 5,167,702,875 – 154,692,452 84,173,202 626,428,489 608,105 865,902,248 – 15,425,229,007 – 215,652,499 3,075,893,885 799,919,053 95,235 4,091,960,672 – 9,259,663,547 6,377,257,130 1,540,856,410 22,590,857 446,561,763 24,138,811 6,134,851 (553,411,863) (24,138,811) 162,764,566 27,399,708 2,343,374,972 10,373,528,394 6,377,257,130 681,856,410 22,590,857 446,561,763 27,709,936 334,633 (811,736,863) (27,709,936) 134,267,390 16,102,522 1,117,325,000 7,9 84,558,842 18,104,487 2,810,029,000 20,000,576 3,438,000 2,851,572,063 29,170,653 5,262,000 16,861,109 – 51,293,762 26,790,951 184,660,883 1,627,429,902 361,246,814 2,200,128,550 – 15,425,229,007 30,990,501 385,182,033 557,382,830 250,255,579 1,223,810,943 – 9,259,663,547 (12) (13) (14) (15) 10) (27) (16) (17) (18) (19) (20) (21) (22) (23) (10) (24) (25) (26) (27) (*) Pursuant to Consob resolution no. 15519 of July 27, 2006 effects of transactions with related parties on the Balance Sheet of Fiat S. p. A. are included in the specific balance sheet schedule reported in the following pages and also provided in the comments of the single items and in Note 30. 238 Fiat S. p. A. Financial Statements at December 31, 2006 Fiat S. p. A. Financial Statements at December 31, 2006 239 Statement of Changes in Stockholders’ Equity Statement of Cash Flows (in thousands of euros) 2006 2005 (in thousands of euros) A) Cash and cash equivalents at beginning of period B) Cash flows from (used in) operating activities during the period: Net result for the period Amortisation and depreciation Non-cash gain from extinguishment of the Mandatory Convertible Facility Non-cash stock option costs (Impairment losses) reversals of impairment losses of investments Capital losses/gains on the disposal of investments Change in provisions for employee benefits and other provisions Change in deferred taxes Change in working capital Total C) Cash flows from (used in) investment activities: Investments: – Recapitalisations of subsidiaries – Acquisitions Other investments (tangible and intangible assets and other financial assets) Proceeds from the sale of: – Investments – Other non-current assets (tangible, intangible and other) Total D) Cash flows from (used in) financing activities: Change in current financial receivables Change in non-current financial payables Change in current financial payables Capital increase Sale of treasury stock Dividend distribution Total E) Total change in cash and cash equivalents F) Cash and cash equivalents at end of period 495 325 2,343,375 2,882 – 11,297 (2,099,350) (329) 7,990 3,438 151,872 421,175 1,117,325 2,918 (859,000) 10,041 430,789 (93) ,100 277,000 (76,028) 905,052 Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result for the period Total Stockholders’ equity At December 31, 2004 Capital increase for conversion of the Mandatory Convertible Facility 4,918,113 – 22,591 446,562 26,413 1,632 (813,435) (26,413) 74,397 6,062 2,141,000 Valuation of stock option plans and other changes Net result for the period At December 31, 2005 10,442 1,117,325 1,117,325 ,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 Valuation of stock option plans and other changes Net result for the period At December 31, 2006 1,459,144 681,856 4,655,922 Fair value adjustments recognised directly in equity 1,297 (1,297) 1,698 (1,297) 59,870 10,041 59,870 (*) (*) Treasury stock at December 31, 2005 consists of 4,331,708 ordinary shares for a total nominal value of 21,659 thousand euros. (6,361,126) (919,412) (15,529) (165,193) – (1,808) 2,357 313 (7,293,397) (a) – 261 (166,740) 2,991,721 2,804,767 1,070,047 – 5,800 – 6,872,335 113 608 (753,091) – 14,548 – 401 – 7 38,142) 170 495 At December 31, 2005 Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result for the period Total Stockholders’ equity 6,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 Allocation of the net result for the prior period Fair value adjustments recognised directly in equity 859,000 (3,571) 5,800 258,325 3,571 28,497 11,297 (1,117,325) – 28,497 2,343,375 2,343,375 7,097 6,377,257 1,540,856 22,591 446,562 24,139 6,135 (553,412) (24,139) (*) 162,764 27,400 2,343,375 10,373,528 (*) Treasury stock at December 31, 2006 consists of 3,773,458 ordinary shares for a total nominal value of 18,867 thousand euros. (a) In 2005, the item â€Å"Capital increase† is shown net of the repayment of the Mandatory Co nvertible Facility (3 billion euros), as it did not give rise to cash flows. Statement of total recognised income and expenses for 2006 and 2005 (in thousands of euros) Gains (losses) recognised directly in the fair value reserve (investments in other companies) Gains (losses) recognised directly in equity Transfer from cash flow hedge reserve Net result for the period Total of recognised income (expense) for the period 240 Fiat S. p. A. Financial Statements at December 31, 2006 2006 2005 28,497 28,497 – 2,343,375 2,371,872 58,958 58,958 912 1,117,325 1,177,195 Fiat S. p. A. Financial Statements at December 31, 2006 241 Income Statement Balance Sheet pursuant to Consob Resolution No. 15519 of July 27, 2006 pursuant to Consob Resolution No. 15519 of July 27, 2006 (in thousands of euros) Dividends and other income from investments (Impairment losses) reversal of impairment losses of investments Gains (losses) on the disposal of investments Other operating income Personnel costs Other operating costs Income (expenses) from significant non-recurring transactions Financial income (expenses) Financial income from significant non-recurring transactions Result before taxes Income taxes Result from continuing operations Result from discontinued operations Net result 242 Fiat S. p. A. Financial Statements at December 31, 2006 Note 2006 (1) 362,419 2,099,350 425 79,238 (57,900) (141,006) – (24,847) – 2,317,679 (25,696) 2,343,375 – 2,343,375 (2) (3) (4) (5) (6) (7) (8) (9) (10) of which Related parties (Note 30) 33,200 (51,901) (17,765) 2005 7,714 430,789) (1,300) 72,854 (60,027) (121,360) 1,133,110 (61,685) 857,636 1,396,153 278,828 1,117,325 – 1,117,325 of which Related parties 24,256 (54,477) 106,259 (in thousands of euros) ASSETS Non-current assets Intangible assets Property, plant and equipment Investments Other financial assets Other non-current assets Deferred tax assets Total Non-current asset s Current assets Inventories Trade receivables Current financial receivables Other current receivables Cash and cash equivalents Total Current assets Assets held for sale TOTAL ASSETS STOCKHOLDERS’ EQUITY AND LIABILITIES Stockholders’ equity Capital stock Additional paid-in capital Reserve under law no. 413/1991 Legal reserve Reserve for treasury stock in portfolio Extraordinary reserve Retained earnings (losses) Treasury stock Gains (losses) recognised directly in equity Stock option reserve Net result Total Stockholders’ equity Non-current liabilities Provisions for employee benefits and other non-current provisions Non-current financial payables Other non-current liabilities Deferred tax liabilities Total Non-current liabilities Current liabilities Provisions for employee benefits and other current provisions Trade payables Current financial payables Other payables Total Current liabilities Liabilities held for sale TOTAL STOCKHOLDERS’ EQUITY AND LIABILITIES Note (11) (12) (13) (14) (15) (10) (27) (16) (17) (18) (19) At December 31, 2006 772 37,253 14,499,595 20,134 1,573 – 14,559,327 – 154,692 84,173 626,429 608 865,902 – 15,425,229 of which Related parties (Note 30) 10,029 2,408 84,173 146,908 At December 31, 2005 of which Related parties 676 39,658 5,117,532 5,335 4,502 – 5,167,703 5,262 – 215,652 3,075,894 799,920 495 4,091,961 – 9,259,664 7,687 3,075,894 106,007 (20) 6,377,257 1,540,856 22,591 446,562 24,139 6,135 (553,412) (24,139) 162,765 27,400 2,343,375 10,373,529 21) (22) (23) (10) (24) (25) (26) (27) 18,104 2,810,029 20,001 3,438 2,851,572 26,791 184,661 1,627,430 361,246 2,200,128 – 15,425,229 6,377,257 681,856 22,591 446,562 27,710 335 (811,737) (27,710) 134,267 16,103 1,117,325 7,984,559 2,810,029 – 17,801 1,405,554 319,078 29,171 5,262 16,861 – 51,294 30,991 38 5,182 557,383 250,255 1,223,811 – 9,259,664 5,262 2,622 4,975 434 215,379 Fiat S. p. A. Financial Statements at December 31, 2006 243 Notes to the Financial Statements Principal activities Fiat S. p. A. (the â€Å"Company†) is a corporation organised under the laws of the Republic of Italy and is the Parent Company f the Fiat Group, holding investments, either directly or indirectly through subholdings, in the capital of the parent companies of business Sectors in which the Fiat Group operates. The head office of the company is in Turin, Italy. The financial statements of Fiat S. p. A. are prepared in euros which is the currency of the economic environment in which the company operates. The Balance Sheet and Income Statement are presented in euros, while the Statement of Cash Flows, the Statement of Changes in Stockholders’ Equity, the Statement of Total Recognised Income and Expenses and the amounts stated n the Notes are presented in thousands of euros, unless otherwise stated. As the Parent Company, Fiat S. p. A. has additionally prepared the consolidated financial statements of the Fiat Group at December 31, 2006. Significant accounting policies Basis of preparation The 2006 financial statements are the separate financial statements of the Parent Company, Fiat S. p. A. , and have been prepared in accordance with the International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) and adopted by the European Union. The designation â€Å"IFRS† also includes all the revised International Accounting Standards (â€Å"IAS†) and all the interpretations of the International Financial Reporting Interpretations Committee (â€Å"IFRIC†), previously known as the Standing Interpretations Committee (â€Å"SIC†). In compliance with European Regulation no. 1606 of July 19, 2002, starting from 2005 the Fiat Group has adopted the International Financial Reporting Standards (â€Å"IFRS†) issued by the International Accounting Standards Board (â€Å"IASB†) for the preparation of its consolidated financial statements. On the basis of national legislation implementing that Regulation, he annual statutory accounts of the Parent Company Fiat S. p. A. as of December 31, 2006 have been prepared for the first time also using those accounting standards. As a consequence the Parent Company Fiat S. p. A. is presenting its financial statements for 2006 and its comparative figures fo r the prior year in accordance with IFRS. The accounting principles applied are the same as those used in the preparation of the Company’s Balance Sheets at January 1, 2005 and December 31, 2005 and its 2005 Income Statement in accordance with IFRS; these statements are provided in the Appendix attached to these Notes, to which reference should be made. The Appendix provides reconciliations of the Company’s equity and Income Statement reported under its previous accounting principles (Italian accounting principles) and IFRS, together with Notes, as required by IFRS 1 – Firsttime adoption of IFRS. Certain reclassifications have been made with respect to the figures published in the Appendix to the 2006 First-half Report. The comparative figures for the previous period were consequently reclassified. These reclassifications have no effect on the net result or stockholders’ equity. The financial statements have been prepared on a historical cost basis, modified as required for measuring certain financial instruments. Format of the financial statements Fiat S. p. A. presents an Income Statement using a classification based on the nature of its revenues and expenses given the type of business it performs. The Fiat Group presents a Consolidated Income Statement using a classification based on function, as this is believed to be more representative of the format selected for managing the business sectors and for internal reporting purposes and is coherent with international practice in the automotive sector. Fiat S. p. A. has elected to present current and non-current assets and liabilities as separate classifications on the face of the Balance Sheet. A mixed format has been selected by the Fiat Group for the Consolidated Balance Sheet, as permitted by IAS 1, presenting only current and non-current assets separately. This decision has been taken in view of the fact that both companies carrying out industrial activities and those carrying out financial activities are consolidated in the 244 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements Group’s financial statements. The investment portfolios of financial services companies are included in current assets in the Consolidated Balance Sheet, as the investments will be realised in their normal operating cycle. Financial services companies, though, obtain funds only partially from the market: the remaining are obtained through the Group’s treasury companies (included in industrial companies), which lend funds both to industrial Group companies and to financial services companies as the need arises. This financial service structure within the Group means that any attempt to separate current and non-current debt in the Consolidated Balance Sheet cannot be meaningful. This has no effect on the presentation of the liabilities of Fiat S. p. A. Assets are depreciated using the policies and rates described below. Lease arrangements in which the lessor maintains substantially all the risks and rewards incidental to the ownership of an asset are classified as operating leases. Lease payments under an operating lease are recognised as an expense on a straightline basis over the lease term. Depreciation Depreciation is charged on a straight-line basis over the estimated useful lives of assets as follows: The statement of cash flows has been prepared using the indirect method. In connection with the requirements of the Consob Resolution No. 15519 of July 27, 2006 as to the format of the financial statements, specific supplementary Income Statement and Balance Sheet formats have been added for related party transactions, so as not to compromise the overall reading of the statements. Annual depreciation rate Buildings Plant Furniture Fixtures Vehicles 3% 10% 12% 20% 25% Land is not depreciated. Intangible assets Impairment of assets Purchased and internally-generated intangible assets are ecognised 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 cost of the asset can be determined reliably. The company reviews at least annually the recoverability of the carrying amount of intangible assets, property, plant and equipment and investments in subsidiaries and associates, in or der to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the carrying amount of an asset is written down to its recoverable amount. The recoverable amount of an asset is the higher of fair value less costs to sell and its value in use. Intangible assets with finite useful lives are measured at purchase or manufacturing cost, net of amortisation charged on a straight-line basis over their estimated useful lives and net of any impairment losses. Property, plant and equipment Cost Property, plant and equipment is measured at purchase or manufacturing cost, net of accumulated depreciation and any impairment losses, and is not revalued. Subsequent expenditures are capitalised only if they increase the future economic benefits embodied in the asset to which hey relate. All other expenditures are expensed as incurred. In particular, in assessing whether investments in subsidiaries and associated companies have been impaired, their recoverable amount has been taken as their value in use, as the investments are not listed and a market value (fair value less costs to sell) cannot be reliably measured. The value in use of a n investment is determined by estimating the present value of the estimated cash flows expected to arise from the results of the investment and from the estimated value of its ultimate disposal, in line with the requirements of paragraph 33 of IAS 28. Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 245 When an impairment loss on assets subsequently reverses or decreases, the carrying amount of the asset or cash-generating unit is increased up to the revised estimate of its recoverable amount, but not in excess of the carrying amount that would have been recognised had no impairment loss been recorded. The reversal of an impairment loss is recognised immediately in income. Measurement Financial instruments Investments in subsidiaries and associates are tested for mpairment annually and if necessary more often. If there is any evidence that these investments have been impaired, the impairment loss is recognised directly in the Income Statement. If the company’s share of losses of the investee exceeds the carrying amount of the investment and if the company has an obligation to respond for these losses, the company’s interest is reduced to zero and a liability is recogn ised for its share of the additional losses. If the impairment loss subsequently no longer exists it is reversed and the reversal is recognised in the income statement up o the limit of the cost of the investment. Presentation Financial instruments held by the company are presented in the Balance Sheet as described in the following: I Non-current assets: Investments, Other financial assets, Other non-current assets. I Current assets: Trade receivables, Current financial receivables, Other current receivables, Cash and cash equivalents. I Non-current liabilities: Non-current financial payables, Other non-current liabilities. Current liabilities: Trade payables, Current financial payables (including payables for advances on the sale of receivables), Other payables. I The item â€Å"Cash and cash equivalents† consists of cash and deposits with banks, units with liquidity funds and other highly traded securities that are readily convertible to cash and which are subject to an insignificant risk of changes in value. The liability relating to financial guarantee contracts is included in Non-current financial payables. The term financial guarantee contracts refers to contracts under which the company guarantees to make specific payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument. The present value of the related receivable for any outstanding commissions is classified in Non-current financial assets. Investments in subsidiaries and associates are stated at cost adjusted for any impairment losses. The excess on acquisition of the purchase cost and the share acquired by the company of the investee company’s net assets measured at fair value is, accordingly, included in the carrying value of the investment. Investments in other companies, comprising non-current financial assets that are not held for trading (available-forsale financial assets), are initially measured at fair value. Any subsequent profits and losses resulting from changes in fair value, arising from quoted prices, are recognised directly in equity until the investment is sold or is impaired; the total profits and losses recognised in equity up to that date are recognised in the Income Statement for the period. Minor investments in other companies for which a market quotation is not available are measured at cost, adjusted for any impairment losses. Other financial assets for which the company has the intent o hold to maturity are recognised on the trade date and are measured at purchase price (being representative of fair value) on initial recognition in the Balance Sheet, inclusive of transaction costs other than in respect of assets held for trading. These assets are subsequently measured at amortised cost using the effective interest method. 246 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements Other non-current assets, Trade receivables, Curre nt financial receivables and Other current receivables, excluding assets eriving from derivative financial instruments and all financial assets for which quotations on an active market are not available and whose fair value cannot be reliably determined are measured at amortised cost using the effective interest method if they have a pre-determined maturity. If financial assets do not have a predetermined maturity they are measured at cost. Receivables with a due date beyond one year that are non-interest bearing or on which interest accrues at below market rate are discounted to present value using market rates. Valuations are performed on a regular basis with the purpose of verifying if there is objective evidence that a financial asset, taken on its own or within a group of assets, may have been impaired. If objective evidence exists, the impairment loss is recognised as a cost in the Income Statement for the period. Non-current financial payables, Other non-current liabilities, Trade payables, Current financial payables and Other payables are measured on initial recognition at fair value (normally represented by the cost of the transaction), including any transaction costs. Financial liabilities are subsequently measured at amortised cost using the effective interest method, except for derivative financial instruments and liabilities for financial guarantee contracts. Financial liabilities hedged by derivative instruments are measured according to the hedge accounting criteria applicable to fair value hedges; gains and losses resulting from subsequent measurement at fair value, caused by fluctuations in interest rates, are recognised in the Income Statement and are set off by the effective portion of the gain or loss resulting from the respective valuation of the hedging instrument at fair value. Liabilities for financial guarantee contracts are measured at the higher of the estimate of the contingent liability (determined in accordance with IAS 37 – Provisions, Contingent Liabilities and Contingent Assets) and the amount initially recognised less any amount released to income over time. Derivative financial instruments Derivative financial instruments are used solely for hedging purposes, for the purpose of reducing foreign exchange rate risk, interest rate risk and the risk of fluctuations in market prices. In accordance with the conditions of IAS 39, derivative inancial instruments qualify for hedge accounting only when, at the inception of the hedge, there is formal designation and documentation of the hedging relationship, the hedge is expected to be highly effective, the effectiveness can be reliably measured and the hedge is actually highly effective throughout the financial reporting periods for which it was designated. All derivative financial instruments are measured at fair value, in accordance with IAS 39. When financial instruments have the characteristics to qualify for hedge accounting the following accounting treatment is dopted: I Fair value hedge – If a derivative financial instrument is designated as a hedge of the exposure to changes in fair value of a recognised asset or liability that is attributable to a particular risk that could affect the Income Statement, the gain or loss resulting from remeasuring the hedging instrument at fair value is recognised in the Income Statement. The gain or loss on the hedged item attributable to the hedged risk adjusts the carrying amount of the hedged item and is recognised in the Income Statement. Cash flow hedge – If a derivative financial instrument is esignated as a hedge of the exposure to variability in the future cash flows of a recognised asset or liability or a highly probable forecast transaction that could affect the Income Statement, the effective portion of the ga in or loss on the derivative financial instrument is recognised directly in equity. The cumulative gain or loss is reversed from equity and reclassified into the Income I Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 247 Statement in the period in which the hedged transaction is recognised. Gains or losses associated with a hedge (or part of a hedge) which is no longer effective are immediately recognised in the Income Statement. If a hedging instrument or a hedging relationship is terminated, but the transaction being hedged has not yet occurred, the cumulative gains and losses recognised in equity until that time are recognised in the Income Statement at the time the transaction occurs. If a hedged transaction is no longer considered probable, the unrealised gains and losses that remain in equity are immediately recognised in the Income Statement. ividing the costs incurred by the total costs forecast for the whole construction). Any losses expected to be incurred on contracts are fully recognised in the Income Statement and as a reduction in contract work in progress when they become known. If hedge accounting cannot be used, the gains and losses resulting from changes in the measurement of the derivative financial instrument at fair value are immediately recognised in the Income Statement. Sales of receivables Inventory Inventory consists of work in progress on specific contracts and in particular relates to long-term construction contracts signed by Fiat S. . A. with Treno Alta Velocita – T. A. V. S. p. A. under which Fiat S. p. A. as general contractor performs the coordination, organisation and management of the work. Work in progress refers to activities carried out directly and is measured by applying the percentage of completion to the contract fee, thereby recognising the margins deriving from the work performed to date. The cost to cost method is used to determine the percentage of completion of a contract (by Any advances received from customers for services performed are presented as a reduction in inventory. If the amount of advances exceeds inventory, the excess is recognised as Advances in the item Other payables. Receivables sold in factoring operations are derecognised from assets if and only if the risks and rewards relating to their ownership have been substantially transferred to the buyer. Receivables sold with recourse and without recourse that do not satisfy this condition remain in the company’s Balance Sheet even if they have been sold from a legal point of view; in this case, an obligation of the same amount is recognised as a liability for the advances received. Assets held for sale Any amounts in this item will consist of non-current assets (or assets and liabilities included in disposal groups) whose carrying amount will be recovered principally through a sale transaction rather than through continuing use. Assets held for sale (or disposal groups) are measured at the lower of their carrying amount and fair value less disposal costs. Employee benefits The expense related to the reversal of discounting pension obligations for defined benefit plans are reported separately as part of the Group’s financial expense. Post-employment plans The company provides pension plans and other postemployment plans to its employees. The pension plans for which the company has an obligation under Italian law are defined contribution plans, while the other post-employment plans, for which the company generally has an obligation under national collective bargaining agreements, are defined benefit plans. The payments made by the company for defined contribution plans are recognised in the Income Statement as a cost when incurred. Defined benefit plans are based on the employees’ working lives and on the salary or wage received by the employee over a predetermined period of service. The employees’ severance indemnity (trattamento di fine rapporto or TFR) is considered to be a defined benefit plan and is accounted for in the same way as other defined benefit plans. The company’s obligation to fund defined benefit plans and the annual cost recognised in the Income Statement are determined by independent actuaries using the projected unit credit method. The portion of net actuarial gains and losses at the end of the previous reporting period that exceeds the greater of 10% of the present value of the defined benefit bligation and 10% of the fair value of the plan assets at that date is deferred and recognised over the remaining working lives of the employees (the â€Å"corridor method†); the portion of actuarial gains and losses that does not exceed this threshold is deferred. In the context of IFRS first-time adoption, the company elected to recognise all cumulative actuarial gains and losses at January 1, 2004 (date of first-time adoption of IFRS by the Fiat Group), although it has adopted the corridor method for those arising subsequently. 248 Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements The liability for obligations arising under defined benefit plans and due on termination of the employment contract represents the present value of the obligation adjusted by actuarial gains and loses deferred as the result of applying the corridor approach and by past service costs for employee service in prior periods that will be recognised in future years. Other long-term benefits The accounting treatment of other long-term benefits is the same as that for post-employment benefit plans except for the fact that actuarial gains and losses and past service costs are fully ecognised in the Income Statement in the year in which they arise and the corridor method is not applied. Equity compensation plans The company provides additional benefits to certain members of top management and to certain employees through equity compensation plans. Under IFRS 2 – Share-based Payment, these plans are a component of employee remuneration whose cost is measured by the fair value of the stoc k options at the grant date recognised in the Income Statement on a straight-line basis from the grant date to the vesting date, with a counter entry to equity. Changes in fair value after the grant date do not have any effect on the initial measurement. The company has applied the transitional provisions of IFRS 2 and as a result the Standard is applicable to all stock option plans granted after November 7, 2002 but which had not yet vested by January 1, 2005, the effective date of the Standard. Detailed disclosures are also provided for plans granted before that date. Fiat S. p. A. Financial Statements at December 31, 2006 – Notes to the Financial Statements 249 Taxes Use of estimates The company recognises provisions when it has a legal or constructive obligation to third parties, when it is probable that the settlement of the obligation will require the outflow of resources and when a reliable estimate can be made for the amount of the obligation. The tax charge for the period is determined on the basis of prevailing laws and regulations. Income taxes are recognised in the Income Statement other than those relating to items credited or charged directly to equity, in which case income taxes are also recognised directly in equity. Changes in estimates are recognised in the Income Statement for the period in which the change occurs. Deferred tax assets and liabilities are determined on the basis of all the temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its corresponding tax basis. Deferred tax assets resulting from unused tax losses and temporary differences are recognised to the extent that it is probable that future taxable profit will be available against which they can be utilised. Current and deferred income taxes and liabilities are offset when there is a legally enforceable right to offset. Deferred tax assets and liabilities are measured by using the tax rates that are expected to apply to the period when the asset is realised or the liability is settled. The preparation of financial statements and related disclosures that conform to IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and iabilities at the date of the financial statements. Actual results could differ from those estimates. Estimates are used in accounting for depreciation and amortisation, impairment losses and reversals of impairment losses on investments, the margins earned on construction contracts, employee benefits, taxes and provisions. Estimates and assumptions are reviewed periodically and the effects of any changes are recognised in the period in which the estimate is revised if the revision ffects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Provisions Treasury stock The cost of purchase of treasury stock is accounted for as a reduction of equity. The effects of any subsequent transactions with those shares are similarly recognised directly in equity. Dividends received and receivable Dividends received and receivable from investments are recognised in the Income Statement when the right to receive the payment of this income is established and only if declared from post-acquisition net income. If dividends are declared from pre-acquisition net income, those dividends are deducted from the cost of the investment. Revenue recognition Revenue is recognised to the extent that it is probable that economic benefits will flow to the company and when the amount of revenue can be measured reliably. Revenue is presented net of any adjusting items. Revenue from services and revenue from construction contracts is recognised by reference to the stage of completion (the percentage of completion method). Revenues arising from royalties are recognised on an accrual basis in accordance with the terms of the relevant agreement. Financial income and expenses Financial income and expenses are recognised and measured in the Income Statement on an accrual basis. Fiat S. p. A. and almost all its Italian subsidiaries have elected to take part in the national tax consolidation programme pursuant to articles 117/129 of the Consolidated Income Tax Act (T. U. I. R. ); the election has been made for a three year period beginning in 2004. Fiat S. p. A. acts as the consolidating company in this programme and calculates a single taxable base for the group of companies taking part, thereby enabling benefits to be realised from offsetting taxable income and tax losses in a single tax return. Each company participating in the consolidation transfers its taxable income or tax loss to the consolidating company and Fiat S. p. A. recognises a receivable from that company for the amount of IRES corporate income tax paid over on its behalf. In the case of a company How to cite Citibank Performance Evaluation Case Study, Free Case study samples

Managing Cross

Table of Contents Tabular notes Introduction Discussion Conclusion Reference List Self Evaluation Tabular notes Bibliographic details Murray, S. (2009). Cross-cultural training. sLondon: Financial Times. Available from web. Mead, R. and Andrews, T. (2009) International management culture. 4 ed. England: John Wiley Sons. Vecchi, A. and Brennan, L. (2009) Quality management: a cross-cultural perspective, International Journal, 16 (2), pp. 149-164. Trompenaars, F. (2003). Business across cultures. England: Capston. J, Campbell. (2005)Business ethics. Oxon: Routledge What is an organizational culture? It is the meaning shared amongst members of a given organization, distinct from any other organization. n/a n/a n/a n/a How does culture affect an international business? With every country having its own communication habits and styles, these companies face cultural differences amongst its diverse employees. Cultural barriers affect the business’ bottom line. Culture inf luences the way an organization responds to its environment, roles, structure, how members communicate, make decisions and also they respond to the organizational structure. By the varying priorities, performances and practices across nations. n/a n/a Causes of cultural differences in international businesses Language barriers, Social norms, total quality management standards. Lack of trainings on management, lack of cultural awareness Factors that contribute in achieving a Total Quality Management n/a n/a Can cross cultural differences be resolved? Yes. Trainings on management, cultural rewarding on individuals. Trainings and cultural awareness Yes. With differences in religion and language, cultural homogeneity may be impossible to achieve in a certain nation n/a n/a Do these factors relate to me? Yes. Creating awareness of cultural differences in a company begins with an individual. Yes. As an individual, cultural misunderstanding could affect you adversely if you lack prio r knowledge of other cultures. Yes. To achieve cultural homogeneity, individual should have be flexible and interested. Can they be positively resolved? Yes. By training the workforce. Yes. Through cultural analysis. Yes. Through adopting a variety of cultural practices. Introduction An Organization result into norms that shape the behaviors of both individuals and groups within the organization. With the increased internationalization in today’s business world, most companies are doing business across many nations. With every country having its own communication habits and styles, these companies face cultural differences amongst its diverse employees.Advertising We will write a custom essay sample on Managing Cross-Cultural Staff specifically for you for only $16.05 $11/page Learn More According to Murray (2009, para. 11), there is therefore the need to invest on cultural preparedness and trainings on the workforce. Cultural barriers a ffect the business’ bottom line (Campbell 2005, p. 102). Mead and Andrews (2009, p. 4) argue that culture influences the way an organization responds to its environment, roles, structure, how members communicate, make decisions and also they respond to the organizational structure. The authors indicate that international managers need to determine the amount of weight to exert on culture in relation to other factors while predicting or explain a behavior. They should also be able to determine the amount of weight on culture that can be administered when responding to an action or a behavior. Discussion Cultural Miscommunications causes wastage of time in the process of trying to understand what the other person is saying, the end result is low morale on workers hence the business fails to capitalize on the benefits of having employees from diverse cultures. Language barrier is a major cause of misunderstandings among employees. Related to this is colloquialism, dialects and a ccents. Cultural awareness is the cure for this barrier. Cultural awareness provides the foundation for intercultural communication sensitivity. Recent research suggests that individuals with such sensitivity tend to do well in intercultural communication settings. Companies should therefore seek to curb this behavior by promoting acceptance of other people’s cultural differences despite the difference in identities. Culture should not define the position that an individual holds in a certain company. Adapting equal opportunities for all is therefore unavoidable for any organization. Another cause of cultural conflicts is the differences that arise from social norms. A person may be treated differently depending on the country that she is doing business in. An example of this is female employees operating in Africa. The social norms of some countries in Africa are different from those of Western Europe. Some African countries view a woman as a person who should always be unde r someone authority.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More They do not command authority and therefore expected not head a corporate. If an employee deployed from such a country to work in a community that accepts a woman to command power and hold a managerial position. Then there is likely to emerge cultural misunderstandings while trying to conduct business with such a company (Murray 2009, para.12) According to Murray, (2009, para. 13), there is no single approach to a certain cultural problem. Therefore, one can apply different concepts in different situations at a given time. While extending its operations abroad, an international business must arm its staff with simple cross cultural information to reduce occurrences of cultural barriers. By so doing, the company would be informing its workforce about the common behaviors in workplace that cause misinterpretations among empl oyees. Managing cross-cultural differences in international businesses is not a one day thing. Managers and employees need to learn about cross-cultural skills (Mead Andrews 2009, p. 4). According to Murray (2009, para. 12), it may involve developing tools for cross- cultural awareness like computer developed programs that thoroughly offers information concerning different time zones and the possible ways of communication while minimizing misunderstanding. The program would also address common cultural attitudes associated with gender. This is a common social issue that cause misunderstanding among diverse teams. Work practices and attitude differences can be disastrous in international business. This is a result of the different ethnic groups involved. It is more effective to practice the solutions in real situations other that just training individuals as formality. Apart from just addressing cultural differences, it is important for international businesses to utilize the benefi ts that result from cultural differences. Managers operating in such businesses must be able to export ideas and implement the ideas in unique ways to fit their market segment and needs. The increased competition in today’s business world demands that companies adapt to quality practices while at the same time capitalize on the competitive advantage that springs from the probability of traditional or non-traditional concerns. A study on quality management indicates that learning about the diversity of workforce cultures will enable managers acquire similar and effective management practices (Murray 2009, para. 13).Advertising We will write a custom essay sample on Managing Cross-Cultural Staff specifically for you for only $16.05 $11/page Learn More Cultural and national boundaries have major roles in Total Quality Management. This is because priorities, performances and practices vary across nations. Some of the factors that affect effective qua lity practice in an organization or nation may include customer focus, the level of management commitment, training, strategic planning, teamwork, employee’s involvement among others. National culture is an entity while discussing about quality management that cannot be ignored. Research indicates that deeply rooted cultures affect quality approaches that managers take despite having similar challenges to adopt change while operating in different societies. Certain cultures in a nation function best if specific quality programs are executed than others. The implementation of quality management majorly depends on the different issues related to the national culture. Change is the main factor that fosters Quality management. However, research shows that the culture of a nation is resistant to change. The main argument behind the results of such a research is that although the quality practices may go through certain changes, the basic values accompanying those practices are res istant to change. In such a case, global firms must align their quality practices in such a way that the local national culture embraces them. However this does not imply giving in the veracity of the policies governing them. Instead, it is crucial to develop effective programs that match the local culture. In countries like Canada, Belgium and also Israel, different national and ethnic cultures co-exist (Vecchi Brennan 2009, p.149- 164). With the globalization and human mobility, the result would be intensified national and ethnic co- existences. However, the differences in sub cultures may be heightened due to the differences in religion and language (Trompenaars Woolliams 2003, p. 38). In such a case, cultural homogeneity may be impossible to achieve in a certain nation. On the basis of the foregoing arguments, it is important to ensure that an organization adopts an effective mode of communication. Therefore I intend to adopt strategic commitment in handling any cultural diffe rences that I encounter within my work place. I also need to accept that an organization is composed of different people from different origins, culture, language, and attitudes. It is important to manage al situations at workplace effectively with the common goal of attaining success and transforming the company into a global business. Culture conflicts may lead to superior, aggressive and hostile attitudes and actions among co- workers. It is therefore imperative for all individuals within an organization to learn about other groups within the company. This is the easiest way to discover that everybody, despite their culture and experiences, has the same high and low points in life as everyone.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More People should be open to learning experiences through foreign books and newspapers that offer such insights. Managers should encourage programs that foster friendship relationships like team building and cultural clubs. Friendship cuts through many misconceptions because it allows people to see others as individuals rather than a collection of traits. Conclusion With the rapid growth of business world, any organization that wishes to establish a competitive edge in the market needs to adapt a globalization strategy that aims at overcoming cross cultural barriers. Globalization entails total integration of languages, economies, nations, cultures and technologies. Research has shown that customers greatly prefer to buy in their own language. While studies show that there exist a relationship between cultural dimensions and quality management, there is need to reconcile some other limitations. This is because there are possibilities of having different corporate, industrial and sectors coexisting within the same firm yet may conflict and imbalance the national culture. Reference List Campbell, J., 2005, Business Ethics. (1st Ed). Oxon: Routledge Mead, R. Andrews, T., 2009, International management culture. 4 ed. England: John Wiley Sons. Murray, S., 2009. Cross-cultural training. London: Financial Times. [On-line]. Trompenaars, F. Woolliams, P., 2003. Business across cultures. (1st Ed). England: Capston. Vecchi, A. Brennan, L., 2009 Quality management: a cross-cultural perspective. International Journal, Vol.16, No. 2, pp. 149-164. Self Evaluation From the experience of doing the above task, I have polished my research skills by utilizing an electronic library. To compile a comprehensive analysis on how organizations should manage the diverse cultures of employees to work for the good of the company, then there was need to research on the subject thoroughly so as get an insight of how different successful global companies manage their employees. These cases w ould only be found through a wide research. I have also learnt that reading and note taking is a fundamental step when writing about an academic essay. In order to compile an academic essay, a writer should keenly read through the provided or available reading material in library or electronic sources and note down major points from which arguments in the body will be generated. The choice of language determines whether or not I will be able to explain clearly the points generated from the reading materials. I have learnt that to effectively communicate I have to choose the right words and tenses when constructing sentences. This is because an academic essay requires the use of correct grammar. The tutorials helped me ensure to structure the academic essay in a way that ideas progressively follow each other. This is an essential step which I have learnt when writing an academic essay. Construction of arguments is another essential thing that I have learned. I have known that in an a rgument, you have to show your agreement as well as your disagreement on the topic of discussion. There after, you can give your stand or general opinion concerning the topic in question. I have as well learned that structuring my written work is important since it helps the reader to quickly capture my point of argument. In addition, it gives my work a beautiful look and thus is attractive to the eye making the reader want to read more. I have leaned that organizing my time and especially by using a time schedule helps improves on time management. Similarly, it helps me to spend quality time on my studies as well as leisure. Organizing time also helps avoid last minute rush when it comes to revising for examination as well as handing over assignment. Tutorials play a big role when it comes to handling of topics under different perspectives. Every one approaches issues in different view point depending on what motivates them. Tutorials therefore become an avenue for such disclosures . I have learned that for as long as you are keen on other people’s arguments, you learn to approach issues at a broad perspective. Next time when given an assignment, I will try as much as possible to have different approaches to it. I will also ensure that I organize and structure my work in more presentable way. I feel confident about myself. I feel I can be able to achieve the set goals. However I need to improve on the way I look at things. I need to adopt a broader way of solving and judging certain issues. This essay on Managing Cross-Cultural Staff was written and submitted by user Marlee Robinson to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.