Chrysler 2009 Annual Report Download - page 150

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The Group adopted the amendment to IAS retrospectively on 1 January 2009, although adoption had no effect on the Group’s
financial statements as the Group already recognised such expenditure as an expense. In connection with the possibility of
using the unit of production method for determining the amortisation charge for an intangible asset with a finite useful life, the
Group amortises these assets on the straight-line-basis.
Amendment to IFRS 7 – Improving Disclosures about Financial Instruments
The amendment, effective from 1 January 2009, was issued in order to improve the disclosure requirements for fair value
measurements and reinforce existing principles for disclosures concerning the liquidity risk associated with financial instruments.
In particular, the amendment requires disclosures to be made that are based on a hierarchy of the inputs used in valuation
techniques to measure fair value. The adoption of the amendment only affected the disclosures in the notes and had no effect
on the measurement of items in the financial statements.
Amendments and interpretations effective from 1 January 2009 but not applicable to the Group
The following amendments, improvements and interpretations have also been issued and are effective from 1 January 2009;
these relate to matters that were not applicable to the Group at the date of these financial statements but which may affect the
accounting for future transactions or arrangements:
Amendments to IAS 32 – Financial Instruments: Presentation and IAS 1 – Presentation of Financial Statements - Puttable
Financial Instruments and Obligations Arising on Liquidation.
Improvement to IAS 29 – Financial Reporting in Hyperinflationary Economies.
Improvement to IAS 36 – Impairment of Assets.
Improvement to IAS 39 – Financial Instruments: Recognition and Measurement.
Improvement to IAS 40 – Investment Property.
IFRIC 13 – Customer Loyalty Programmes.
IFRIC 15 – Agreements for the Construction of Real Estate.
IFRIC 16 – Hedges of a Net Investment in a Foreign Operation.
Finally, on 12 March 2009 the IASB issued amendments to IFRIC 9 – Reassessment of Embedded Derivatives and to IAS 39 –
Financial Instruments: Recognition and Measurement that allow entities to reclassify certain financial instruments out of the “fair
value through profit or loss” category in specific circumstances. The amendments clarify that on the reclassification of a financial
asset out of the “fair value through profit or loss” category all embedded derivatives have to be assessed and, if necessary,
separately accounted for in the financial statements. The amendments are effective retrospectively from 31 December 2009,
although adoption had no effect on the Group’s financial statements.
Accounting principles, amendments and interpretations not yet applicable and not early adopted by the Group
On 10 January 2008 the IASB issued a revised version of IFRS 3 – Business Combinations and an amended version of
IAS 27 - Consolidated and Separate Financial Statements. The main changes that revised IFRS 3 makes to existing requirements
are the elimination of the need to measure every asset and liability at fair value at each stage in a step acquisition of subsidiaries.
Goodwill is only to be measured on acquiring control, as the difference at acquisition date between the value of any investment
in the business held before the acquisition, the consideration transferred and the net assets acquired. Moreover, for a business
combination in which the acquirer achieves control without purchasing all of the acquiree, the remaining (non-controlling) equity
interests are measured either at fair value or by using the method already provided previously in IFRS 3. The revised IFRS 3
also requires acquisition-related costs to be recognised as expenses and the acquirer to recognise the obligation to make
an additional payment as part of the business combination (contingent consideration). In the amended version of IAS 27, the