Chrysler 2009 Annual Report Download - page 289

FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2009
NOTES
288
Amendment to IFRS 2 - Share-based Payment: Vesting Conditions and Cancellations
The amendment to IFRS 2 - Share-based Payment: Vesting Conditions and Cancellations clarifies that for the purpose of
measuring share-based payments, only service conditions and performance conditions may be considered vesting conditions.
Any other clauses shall be considered non-vesting conditions and included in the determination of fair value at the grant
date. The amendment also specifies that all cancellations, whether by the entity or by other parties, should receive the same
accounting treatment.
The Company adopted the amendment retrospectively from 1 January 2009. No effects arose from first-time adoption because
the stock options and stock grants in place within the Group and not fully vested do not provide for vesting conditions different
from performance conditions and service conditions as defined by the amendment and because no awards were cancelled
during the period.
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.
Principles, amendments and interpretations effective from 1 January 2009 but not applicable to the Company
The following principles, amendments and interpretations have also been issued and are effective from 1 January 2009; these
relate to matters that were not applicable to the Company at the date of these financial statements but which may affect the
accounting for future transactions or arrangements:
IAS 23 Revised - Borrowing Costs: the revised version of the standard removes the option previously available of immediately
recognising as an expense borrowing costs that relate to assets that take a substantial period of time to get ready for use or
sale (qualifying assets). As part of its 2008 annual improvements project the IASB also published an amendment to IAS 23
(Revised) in order to revise the definition of the borrowing costs to be capitalised.
IAS/IFRS improvements (2008): following the 2008 annual improvement process conducted by IASB, changes were made
to certain accounting standards which became effective 1 January 2009. Some of these changes are limited to terminology,
while others are more substantial but, in any event, have had a limited impact on the company’s financial statements.
Amendment to IAS 32 - Financial Instruments: Presentation and to IAS 1 Presentation of Financial Statements - Puttable
Financial Instruments and Obligations Arising on Liquidation. These amendments require puttable financial instruments and
instruments, or components of instruments that impose on an entity an obligation to deliver to another party a pro rata share
of the net assets of the entity only on liquidation, to be classified as equity instruments.
Improvement to IAS 39 - Financial Instruments: Recognition and Measurement: this amendment 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.
IFRIC 13 - Customer Loyalty Programmes.
IFRIC 15 - Agreements for the Construction of Real Estate.