Chrysler 2010 Annual Report Download - page 319

318
NOTES FIAT S.P.A.
STATUTORY
FINANCIAL
STATEMENTS AT
31 DECEMBER
2010
Amendment 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 standards, amendments and interpretations not yet applicable and not early adopted by the Company
On 8 October 2009, the IASB issued an amendment to IAS 32 – Financial Instruments: Presentation on “Classification of rights
issues”, which addresses accounting for rights issues (rights, options or warrants) denominated in a currency other than an
issuer’s functional currency. Previously such rights issues were accounted for as derivative liabilities. However, the amendment
requires that, provided certain conditions are met, such rights are classified as equity regardless of the currency in which the
exercise price is denominated. The amendment is applicable retrospectively from 1 January 2011. Adoption of this amendment
is not expected to have any impact on the Company’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 transactions with 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. Adoption of this standard will have no effect on the
measurement of items in the financial statements.
On 12 November 2009, the IASB issued IFRS 9 – Financial Instruments, which was amended on 28 October 2010. The new
standard, effective from 1 January 2013, represents completion of the first phase of a project to replace IAS 39 and introduces
new requirements for classifying and measuring financial assets and liabilities and derecognition of financial assets. For financial
assets, the standard uses a single approach to determine whether a financial asset is measured at amortized cost or fair
value – replacing the many different rules in IAS 39 – which is based on how an entity manages its financial instruments and
the contractual cash flow characteristics of the financial assets. For financial liabilities, on the other hand, the principal change
relates to the recognition of changes in fair value of financial liabilities measured at fair value through profit or loss, when such
changes are due to changes in the credit risk of the liability. According to the new standard, these changes must be recognized
in other comprehensive income rather than through profit or loss. At the date of these financial statements, the new standard
had not yet been endorsed by the European Union.
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 an entity to treat the benefit of such early payment as an
asset. The amendment has an effective date for mandatory adoption of 1 January 2011. Adoption of this amendment is not
expected to have any impact on the Company’s financial statements.
On 26 November 2009, 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 through 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 initial measurement of the equity
instruments issued is recognized in profit or loss for the period. Adoption of the interpretation is mandatory from 1 January 2011.
Adoption of this amendment is not expected to have any impact on the Company’s financial statements.