Chrysler 2008 Annual Report Download - page 270

Fiat S.p.A. Statutory Financial Statements at 31 December 2008 269
has been revised in order to allow entities to use the unit of
production method for determining the amortisation charge for
an intangible asset with a finite useful life.
Amendment to IAS 39 – Financial Instruments: Recognition
and Measurement
: this amendment, effective from 1 January
2009, clarifies how to calculate the revised effective interest
rate when discontinuing fair value hedge accounting and notes
additionally that the prohibition on the reclassification of
financial instruments into or out of the fair value through profit
or loss category after initial recognition should not prevent a
derivative from being accounted for at fair value through profit
or loss when it does not qualify for hedge accounting and vice
versa.
On 31 July 2008, the IASB issued an amendment to IAS 39 –
Financial Instruments: Recognition and Measurement which is
to be applied retrospectively from 1 January 2010. The
amendment clarifies how the existing principles underlying
hedge accounting should be applied in particular situations. As
of the date of these financial statements, the amendment had
not yet been endorsed by the European Union.
IFRIC 13 – Customer Loyalty Programmes (effective from 1
January 2009).
IFRIC 15 – Agreements for the Construction of Real Estate
(effective from 1 January 2009 but not yet endorsed by the
European Union).
Risk Management
The risks to which Fiat S.p.A. is exposed, either directly or
indirectly through its subsidiaries, are the same as those of the
companies of which it is the Parent. Reference should therefore
be made to the note on Risk Management included in the
Notes to the Consolidated Financial Statements of the Fiat
Group as well as to Note 28.