Chrysler 2008 Annual Report Download - page 268

Fiat S.p.A. Statutory Financial Statements at 31 December 2008 267
On 6 September 2007, the IASB issued a revised version of IAS
1 -
Presentation of Financial Statements which applies from 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. Adoption of this standard will
have no effect on the measurement of items in the balance
sheet.
On 17 January 2008, the IASB issued an amendment to IFRS 2 -
Vesting Conditions and Cancellations which clarifies that for
the purpose of measuring share based payments, vesting
conditions are service conditions and performance conditions
only. It also specifies that all cancellations, whether by the
entity or by other parties, should receive the same accounting
treatment. The Company will apply this amendment
retrospectively from 1 January 2009; no effects are expected
from its adoption.
On 22 May 2008, IASB issued an amendment to IFRS 1 –
First
Time Adoption of International Financial Reporting Standards
and IAS 27 – Consolidated and Separate Financial Statements
which allows companies adopting IFRS for the first time from 1
January 2009 and electing to recognise investments in
subsidiaries, associates and joint ventures in the separate
financial statements at cost, to use one of the following
methods:
cost determined in accordance with IAS 27;
revalued cost measured on a fair value basis at the date of
transition to IFRS or the carrying value of the investment at the
date of transition measured in accordance with local GAAP.
Finally, the amendment requires that all dividends received
from subsidiaries, joint ventures and associates must be
recognised in the parent company’s income statement when
the right to receive those dividends is established. Revisions to
IAS 36 –
Impairment of Assets require that, when evaluating
whether impairment exists, if an investee company has
distributed a dividend, the following must be considered:
whether the carrying amount of the investment in the
separate financial statements exceeds the book value of that
company’s equity (including any associated goodwill) as
recognised in the consolidated financial statements;
whether the dividend exceeds the comprehensive income of
the investee for the period to which the dividend relates.
The amendments are applicable prospectively from 1 January
2009.
On 22 May 2008, the IASB issued a series of amendments to
IFRS (“Improvements”). The following paragraphs provide
details of those identified by the IASB as resulting in accounting
changes for presentation, recognition and measurement
purposes, excluding those related to terminology or editorial
changes which are likely to have minimal effects on accounting.
IAS 1 – Presentation of Financial Statements (revised in
2007)
: this amendment, to be applied from 1 January 2009,
requires an entity to classify assets and liabilities arising from
derivative financial instruments that are not classified as held
for trading between current and non-current assets and
liabilities. Adoption of this standard will have no effect on the
measurement of items in the financial statements.
IAS 23 – Borrowing Costs : this amendment, applicable from 1
January 2009, revises the definition of borrowing costs.
IAS 36 – Impairment of Assets : this amendment, effective
from 1 January 2009, requires additional disclosures to be
made where an entity determines the recoverable amount of
an asset using discounted cash flows.