Chrysler 2009 Annual Report Download - page 137

136 FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2009
NOTES
Investment property
Real estate and buildings held in order to obtain rental income are carried at cost less accumulated depreciation (charged at
annual rates of between 2.5% to 5%) and impairment losses.
Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets (as defined under
IAS 23 – Borrowing costs), which are assets that necessarily take a substantial period of time to get ready for their intended use
or sale, are capitalised and amortised over the useful life of the class of assets to which they refer.
All other borrowing costs are expensed when incurred.
Impairment of assets
The Group reviews, at least annually, the recoverability of the carrying amount of intangible assets (including capitalised
development costs) and property, plant and equipments, in order to determine whether there is any indication that those
assets have suffered an impairment loss. If indications of impairment are present, the carrying amount of the asset is reduced
to its recoverable amount. An intangible asset with an indefinite useful life is tested for impairment annually or more frequently,
whenever there is an indication that the asset may be impaired.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount
of the cash-generating unit to which the asset belongs.
The recoverable amount of an asset is the higher of fair value less disposal costs and its value in use. In assessing its value in
use, the pre-tax estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset. An impairment loss is recognised
when the recoverable amount is lower than the carrying amount. Where an impairment loss for assets other than goodwill
subsequently no longer exists or has decreased the carrying amount of the asset or cash-generating unit is increased to the
revised estimate of its recoverable amount, but not in excess of the carrying amount that would have been recorded had no
impairment loss been recognised. A reversal of an impairment loss is recognised in the income statement immediately.
Financial instruments
Presentation
Financial instruments held by the Group are presented in the financial statements as described in the following paragraphs.
Investments and other non-current financial assets comprise investments in unconsolidated companies and other non-current
financial assets (held-to-maturity securities, non-current loans and receivables and other non-current available-for-sale financial
assets).
Current financial assets, as defined in IAS 39, include trade receivables, receivables from financing activities (retail financing,
dealer financing, lease financing and other current loans to third parties), current securities, and other current financial assets
(which include derivative financial instruments stated at fair value as assets), as well as cash and cash equivalents.
In particular, Cash and cash equivalents include cash at banks, units in liquidity funds and other money market securities that
are readily convertible into cash and are subject to an insignificant risk of changes in value.
Current securities include short-term or marketable securities which represent temporary investments of available funds and
do not satisfy the requirements for being classified as cash equivalents; current securities include both available-for-sale and
held for trading securities.