Chrysler 2009 Annual Report Download - page 153

152 FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2009
NOTES
or services it received as either an equity-settled or a cash-settled share-based payment transaction assessed from its own
perspective, which may not always be the same as the amount recognised by the consolidated group. The amendments also
incorporate guidance previously included in IFRIC 8 - Scope of IFRS 2 and IFRIC 11 - IFRS 2 - Group and Treasury Share
Transaction. As a result, the IASB has withdrawn IFRIC 8 and IFRIC 11.The amendment is effective from 1 January 2010; the
European Union had not yet endorsed the amendment at the date of these financial statements.
On 8 October 2009, the IASB issued an amendment to IAS 32 – Classification of Rights Issues in order to address the
accounting for rights issues (rights, options or warrants) that are denominated in a currency other than the functional currency
of the issuer. Previously such rights issues were accounted for as derivative liabilities. However, the amendment requires that,
provided certain conditions are met, such rights issues are classified as equity regardless of the currency in which the exercise
price is denominated. The amendment is applicable from 1 January 2011 and the Group is currently assessing any effects this
change may have on the financial statements.
On 4 November 2009, the IASB issued a revised version of IAS 24 - Related Party Disclosures that simplifies the disclosure
requirements for government-related entities and clarifies the definition of a related party. The revised standard is effective for
annual periods beginning on or after 1 January 2011. The revised standard had not yet been endorsed by the European Union
at the date of these financial statements.
On 12 November 2009, the IASB issued a new standard IFRS 9 – Financial Instruments on the classification and measurement
of financial assets, having an effective date for mandatory adoption of 1 January 2013. The new standard represents the
completion of the first part of a project to replace IAS 39. The new standard uses a single approach to determine whether a
financial asset is measured at amortised cost or fair value, replacing the many different rules in IAS 39. The approach in IFRS 9
is based on how an entity manages its financial instruments and the contractual cash flow characteristics of the financial assets.
IFRS 9 also requires a single impairment method to be used. The new standard had not yet been endorsed by the European
Union at the date of these financial statements.
On 26 November 2009, the IASB issued a minor amendment to IFRIC 14 - Prepayments of a Minimum Funding Requirement.
The amendment applies when an entity is subject to minimum funding requirements and makes an early payment of contributions
to cover those requirements. The amendment permits such an entity to treat the benefit of such an early payment as an asset.
The amendment has an effective date for mandatory adoption of 1 January 2011; the amendment had not yet been endorsed
by the European Union at the date of these financial statements.
On 26 November 2009, the IFRIC issued the interpretation IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments
that provides guidance on how to account for the extinguishment of a financial liability by the issue of equity instruments. The
interpretation clarifies that when an entity renegotiates the terms of a financial liability with its creditor and the creditor agrees
to accept the entity’s shares or other equity instruments to settle the financial liability fully or partially, then the entity’s equity
instruments issued to a creditor are part of the consideration paid to extinguish the financial liability and are measured at their fair
value. The difference between the carrying amount of the financial liability extinguished and the initial measurement amount of
the equity instruments issued is included in the profit or loss for the period. The amendment has an effective date for mandatory
adoption of 1 January 2011; the amendment had not yet been endorsed by the European Union at the date of these financial
statements.