Chrysler 2008 Annual Report Download - page 269

Fiat S.p.A. Statutory Financial Statements at 31 December 2008268
Accounting principles, amendments and
interpretations not applicable by the Company
The following standards, amendments and interpretations have
also been issued but were not applicable to the Company at
the balance sheet date:
Improvement to IAS 16 – Property, Plant and Equipment : this
amendment, effective from 1 January 2009, requires an entity
that in the course of its ordinary activities routinely sells items
of property, plant and equipment that it has held for rental to
others, to transfer such assets to inventories when they cease
to be rented and become held for sale. Consequently, proceeds
from any sale of such assets are to be recognised as revenue.
Cash payments to manufacture or acquire assets held for
rental to others or subsequently held for sale are cash flows
from operating activities (and not from investing activities).
Improvement to IAS 19 – Employee Benefits : this
amendment, effective prospectively from 1 January 2009 to
changes in benefits that occur after that date, clarifies the
definition of positive/negative past service costs and states
that, in the case of a curtailment, only the effect of the
reduction for future service shall be recognised immediately in
the income statement, while the effect arising from past
service periods shall be considered a negative past service
cost. The Board also revised the definition of short-term
employee benefits and other long-term employee benefits and
the definition of a return on plan assets, stating that this
amount should be net of any costs for administering the plan
(other than those included in the measurement of the defined
benefit obligation).
Improvement to IAS 20 – Government Grants and Disclosure
of Government Assistance
: this amendment, applicable
prospectively from 1 January 2009, states that the benefit of a
government loan at a below-market rate of interest shall be
treated as a government grant and then accounted for in
accordance with IAS 20.
Improvement to IAS 28 – Investments in Associates , and IAS
31 –
Investments in Joint Ventures : these amendments,
effective from 1 January 2009, require specific new disclosures
to be made for investments in associates and joint ventures
measured at fair value in accordance with IAS 39. IFRS 7
Financial Instruments: Disclosures and IAS 32: Financial
Instruments: Presentation
has accordingly also been amended.
Improvement to IAS 29 – Financial Reporting in
Hyperinflationary Economies
: the previous version of the
standard did not reflect the fact that a number of assets and
liabilities may or must be measured on the basis of a current
value rather than historical value. This amendment, made in
order to reflect this, is effective from 1 January 2009.
Improvement to IAS 40 – Investment Property : this
amendment, to be adopted prospectively from 1 January 2009,
states that property under construction falls within the scope
of IAS 40 and not IAS 16.
Amendment to IAS 27 – Consolidated and Separate Financial
Statements
: this amendment, which applies prospectively from
1 January 2009, requires that investments recognised in the
separate financial statements and measured in accordance with
IAS 39 are subject to IFRS 5 –
Non-current Assets Held for Sale
and Discontinued Operations
.
Amendment to IAS 32 – Financial Instruments: Presentation
and to IAS 1 Presentation of Financial Statements - Puttable
Financial Instruments and Obligations Arising on Liquidation
.
These amendments require puttable financial instruments and
instruments, or components of instruments that impose on an
entity an obligation to deliver to another party a pro rata share
of the net assets of the entity only on liquidation, to be
classified as equity instruments. This amendment is effective
prospectively from 1 January 2009.
Amendment to IAS 38 – Intangible Assets : this amendment,
effective retrospectively from 1 January 2009, requires
expenditure on advertising and promotional activities to be
recognised in the income statement. Further, it states that
expenditures incurred to provide future economic benefits to
an entity, but where no intangible asset is recognised, must,
for the supply of goods, be recognised as an expense when it
has the right to access the goods. In the case of the supply of
services, an entity shall recognise the expenditure as an
expense when it receives the services. Moreover, the standard