Chrysler 2008 Annual Report Download - page 122

Fiat Group Consolidated Financial Statements at 31 December 2008 121
permits an entity to transfer a financial asset from the
available-for-sale category to the loans and receivables
category where it has the intention and ability to hold such
asset for the foreseeable future. Although this amendment
applies from 1 July 2008, it has had no effect on the
Consolidated financial statements presented herein as none of
the reclassifications permitted by the amendment were carried
out by the Group.
Interpretations effective from 1 January 2008
but not applicable to the Group
The interpretation IFRIC 12 –
Service Concession Arrangements
(effective from 1 January 2008 but not yet endorsed by the
European Union) relates to matters that are not applicable to
the Group.
Accounting principles, amendments and
interpretations not yet applicable and not early
adopted by the Group
On 29 March 2007 the IASB issued a revised IAS 23 –
Borrowing Costs . The standard shall be applied for annual
period beginning after 1 January 2009. The main change from
the previous version is the removal of the option of
immediately recognising as an expense borrowing costs that
relate to assets that take a substantial period of time to get
ready for use or sale. The standard shall be applied
prospectively to borrowing costs relating to qualifying assets
for which the commencement date for capitalisation is on or
after the 1 January 2009.
On 6 September 2007 the IASB issued a revised version of IAS
1 -
Presentation of Financial Statements that is effective for
annual periods beginning on or after 1 January 2009. The
revised standard requires an entity to present changes in its
equity resulting from transactions with owners in a statement
of changes in equity. All non-owner changes (meaning changes
in comprehensive income) are required to be presented either
in a single statement of comprehensive income or in two
statements (a separate income statement and a statement of
comprehensive income). Transactions with non-owners may
not be presented in the statement of changes in equity. The
adoption of this standard will have no effect on the
measurement of items in the financial statements.
On 10 January 2008 the IASB issued a revised version of IFRS
3 –
Business Combinations and an amended version of IAS 27 -
Consolidated and Separate Financial Statements . The main
changes that revised IFRS 3 will make to existing requirements
are the elimination of the need to measure at fair value every
asset and liability at each step in a step acquisition for the
purpose of calculating a portion of goodwill. Instead, goodwill
will be measured as the difference at acquisition date between
the value of any investment in the business held before the
acquisition, the consideration transferred and the net assets
acquired. Moreover, for a business combination in which the
acquirer achieves control without purchasing all of the
acquiree, the remaining (non-controlling) equity interests are
measured either at fair value or by using the method already
provided in IFRS 3. The revised IFRS 3 also requires acquisition
related costs to be recognised as expenses and the acquirer
to recognise the obligation to make an additional payment
(contingent consideration) as part of the business combination.
In the amended version of IAS 27, the IASB has added
a requirement specifying that changes in a parent’s interest
in a subsidiary that do not result in the loss of control must be
accounted for as equity transactions and recognised within
equity. Moreover when a parent loses control of a subsidiary
but retains an ownership interest it must initially measure any
retained investment at fair value. At the date when control is
lost, the difference between the fair value and the carrying
amount of the retained interest must be recognised in profit
or loss. Finally, the amendment to IAS 27 requires losses
pertaining to non-controlling interests to be allocated to non-
controlling interest equity, even if this results in the non-
controlling interest having a deficit balance. The new rules will
apply prospectively from 1 January 2010. The revised standard
had not yet been endorsed by the European Union at the date
of this Consolidated financial statements.
On 17 January 2008 the IASB issued an amendment to IFRS 2 -
Vesting Conditions and Cancellations which clarifies that for
the purpose of share based payments measurement, vesting
conditions are service conditions and performance conditions
only. It also specifies that all cancellations, whether by the