Chrysler 2010 Annual Report Download - page 156

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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.
Financial liabilities refer to debt, which includes asset-backed financing, and other financial liabilities (which include derivative
financial instruments stated at fair value as liabilities), trade payables and other payables.
Measurement
Investments in unconsolidated companies classified as non-current financial assets are accounted for as described in the
section Basis of consolidation.
Non-current financial assets other than investments, as well as current financial assets and financial liabilities, are accounted for
in accordance with IAS 39 – Financial Instruments: Recognition and Measurement.
Current financial assets and held-to-maturity securities are recognised on the basis of the settlement date and, on initial
recognition, are measured at acquisition cost, including transaction costs.
Subsequent to initial recognition, available-for-sale and held for trading financial assets are measured at fair value. When market
prices are not available, the fair value of available-for-sale financial assets is measured using appropriate valuation techniques
e.g. discounted cash flow analysis based on market information available at the balance sheet date.
Gains and losses on available-for-sale financial assets are recognised directly in other comprehensive income until the financial
asset is disposed or is determined to be impaired; when the asset is disposed of, the cumulative gains or losses, including those
previously recognised in other comprehensive income, are reclassified to the income statement for the period; when the asset is
impaired, accumulated losses are recognised in the income statement. Gains and losses arising from changes in the fair value
of held for trading financial instruments are included in the income statement for the period.
Loans and receivables which are not held by the Group for trading (loans and receivables originating in the course of business),
held-to-maturity securities and all financial assets for which published price quotations in an active market are not available
and whose fair value cannot be determined reliably, are measured, to the extent that they have a fixed term, at amortised cost,
using the effective interest method. When the financial assets do not have a fixed term, they are measured at acquisition cost.