Chrysler 2009 Annual Report Download - page 292

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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 entity’s 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.
RISK MANAGEMENT
The risks to which Fiat S.p.A. is exposed, either directly or indirectly through its subsidiaries, are the same as those of the
companies of which it is Parent. Reference should therefore be made to the note on Risk Management included in the Notes
to the Consolidated Financial Statements of the Fiat Group as well as to Note 28.