Chrysler 2010 Annual Report Download - page 320

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On 6 May 2010, the IASB issued a set of amendments to IFRSs (“Improvements to IFRSs”) that are applicable from 1 January
2011. Set out below are those that may lead to changes in the presentation, recognition or measurement of items in the financial
statements, excluding those that only relate to changes in terminology or editorial changes having a limited accounting effect
and those that affect standards or interpretations that are not applicable to the Company.
IFRS 1 – First-time Adoption of International Financial Reporting Standards: this amendment clarifies that if an entity has
to measure its assets at fair value due to a special event such as an IPO or a privatization in accordance with local law,
the revalued amount may also be used in preparation of the IFRS financial statements even if the company had already
determined the fair value of assets and liabilities existing at the date of transition to IFRSs.
IFRS 7 – Financial Instruments: Disclosures: this amendment emphasizes the interaction between the qualitative and
quantitative disclosures required by the standard concerning the nature and extent of risks arising from financial instruments.
This should help users of financial statements to link related disclosures and hence form an overall picture of the nature and
extent of risks arising from financial instruments. In addition, the disclosure requirement relating to financial assets that are
past due or impaired, but whose term has been renegotiated, and to the fair value of collateral has been removed.
Adoption of these improvements is not expected to have any impact on the Company’s financial statements.
On 7 October 2010, the IASB issued amendments to IFRS 7 – Financial Instruments: Disclosures, applicable for reporting periods
commencing on or after 1 July 2011. The amendments allow users of financial statements to improve their understanding of
transfers of financial assets, including understanding the possible effects of any risks that may remain with the entity that
transferred the assets. The amendments also require additional disclosures if a disproportionate amount of transfers are
undertaken around the end of a reporting period. At the date of these financial statements, application of these amendments
had not yet been endorsed by the European Union.
On 20 December 2010, the IASB issued a minor amendment to IAS 12 – Income taxes, requiring an entity to measure the
deferred tax relating to an asset depending on whether the entity expects to recover the carrying amount of the asset through
use or sale. As a result of this amendment, SIC 21 – Income Taxes – Recovery of Revalued Non-Depreciable Assets will no
longer apply. Adoption of the amendment is mandatory from 1 January 2012. At the date of these financial statements, the
amendment had not yet been endorsed by the European Union.
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.