Chrysler 2009 Annual Report Download - page 136

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Other intangible assets
Other purchased and internally-generated intangible assets are recognised 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 costs of the asset
can be determined reliably.
Such assets are measured at purchase or manufacturing cost and amortised on a straight-line basis over their estimated useful
lives, if these assets have finite useful lives.
Other intangible assets acquired as part of an acquisition of a business are capitalised separately from goodwill if their fair value
can be measured reliably.
Property, plant and equipment
Cost
Property, plant and equipment are stated at acquisition or production cost and are not revalued.
Subsequent expenditures and the cost of replacing parts of an asset are capitalised only if they increase the future economic
benefits embodied in that asset. All other expenditures are expensed as incurred. When such replacement costs are capitalised,
the carrying amount of the parts that are replaced is recognised in the income statement.
Property, plant and equipment also include vehicles sold with a buy-back commitment, which are recognised according to
the method described in the paragraph Revenue recognition if the buy-back commitment originates from the Trucks and
Commercial Vehicles Sector.
Assets held under finance leases, which provide the Group with substantially all the risks and rewards of ownership, are
recognised as assets of the Group at their fair value or, if lower, at the present value of the minimum lease payments. The
corresponding liability to the lessor is included in the financial statement as a debt. The assets are depreciated by the method
and at the rates indicated below.
Leases where the lessor retains substantially all the risks and rewards of ownership of the assets are classified as operating
leases. Operating lease expenditures are expensed on a straight-line basis over the lease terms.
Depreciation
Depreciation is calculated on a straight-line basis over the estimated useful life of the assets as follows:
Depreciation rates
Buildings 2.5% - 10%
Plant and machinery 5% - 20%
Industrial and commercial equipment 15% - 25%
Other assets 10% - 33%
Land is not depreciated.
Leased assets
Leased assets include vehicles leased to retail customers by the Group’s leasing companies under operating lease agreements.
They are stated at cost and depreciated at annual rates of between 20% and 33%.
When such assets cease to be rented and become held for sale, the Group reclassifies their carrying amount in Inventories.