Chrysler 2010 Annual Report Download - page 167

FIAT GROUP
CONSOLIDATED
FINANCIAL
STATEMENTS
AT 31 DECEMBER
2010
NOTES
166
Standards, amendments and interpretations effective from 1 January 2010 but not applicable to the Group
The following amendments, improvements and interpretations have also been issued and are effective from 1 January 2010;
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:
Improvement 2008 to IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations.
Amendments to IAS 28 – Investments in Associates and to IAS 31 – Interests in Joint Ventures consequential to the
amendment to IAS 27.
Improvements to IAS/IFRS (2009).
Amendments to IFRS 2 – Share based Payment: Group Cash-settled Share-based Payment Transactions.
IFRIC 17 – Distributions of Non-cash Assets to Owners.
IFRIC 18 – Transfers of Assets from Customers.
Amendment to IAS 39 – Financial Instruments: Recognition and Measurement: Eligible Hedged items
Accounting principles, amendments and interpretations not yet applicable and not early adopted by the Group
On 8 October 2009, the IASB issued an amendment to IAS 32 – Financial Instruments: Presentation, 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,
provided certain conditions are met, the amendment requires such rights issues to be classified as equity regardless of the
currency in which the exercise price is denominated. The amendment is effective retrospectively from 1 January 2011; when
applied this amendment is not expected to lead to significant effects on the Group’s 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. Application of this amendment is not expected to have any significant
effects on the measurement of items in the Group’s financial statements.
On 12 November 2009, the IASB issued a new standard IFRS 9 – Financial Instruments that was amended on 28 October 2010.
The new standard, having an effective date for mandatory adoption of 1 January 2013, represents the completion of the first
part of a project to replace IAS 39 and introduces new requirements for the classification and measurement of financial assets
and financial liabilities and for the derecognition of financial assets. 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. The most significant effect of the standard regarding the classification and measurement of financial liabilities
relates to the accounting for changes in fair value attributable to changes in the credit risk of financial liabilities designated as at
fair value through profit or loss. Under the new standard these changes are recognised in Other comprehensive income and are
not subsequently reclassified to the Income statement. 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. Application of this amendment
is not expected to have any significant effects on the Group’s financial statements.