Chrysler 2011 Annual Report Download - page 154

153
Consolidated
Financial Statements
at 31 December 2011
Accounting standards, amendments and interpretations applied since 1 January 2011
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. Application of this amendment did not have any significant
effects on the measurement of items in the Group’s financial statements and had only limited effects on the disclosures for related party
transactions provided in these consolidated financial statements.
Accounting standards, amendments and interpretations effective from 1 January 2011 but not applicable to the Group
The following amendments, improvements and interpretations have also been issued and are effective from 1 January 2011; these
relate to matters that were not applicable to the Group at the date of these consolidated financial statements but which may affect the
accounting for future transactions or arrangements:
Financial Instruments: Presentation, Classification of Rights Issues: an amendment to IAS 32;
Prepayments of a Minimum Funding Requirement: an amendment to IFRIC 14;
IFRIC 19 – Extinguishing Financial Liabilities with Equity Instruments;
Improvements to IAS/IFRS (2010).
Accounting standards and amendments not yet applicable and not early adopted by the Group
Except for the amendments to IFRS 7 – Financial Instruments: Disclosures issued on 7 October 2011 described below, the European
Union had not yet completed its endorsement process for these standards and amendments at the date of these consolidated financial
statements.
On 12 November 2009, the IASB issued a new standard IFRS 9 – Financial Instruments that was subsequently amended. This
standard, having an effective date for mandatory adoption of 1 January 2015 retrospectively, 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. 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 profit or loss.
On 20 December 2010, the IASB issued an amendment to IAS 12 – Income Taxes which clarify the accounting for deferred tax
relating to investment properties measured at fair value. The amendment introduces the presumption that the carrying amount of
deferred taxes relating to investment properties measured at fair value under IAS 40 will be recovered through sale. As a result of the
amendments, SIC-21 – Income Taxes – Recovery of Revalued Non-Depreciable Assets no longer applies. These amendments are
effective retrospectively from 1 January 2012.
On 12 May 2011, the IASB issued IFRS 10 – Consolidated Financial Statements replacing SIC-12 – Consolidation - Special Purpose
Entities and parts of IAS 27 – Consolidated and Separate Financial Statements (subsequently reissued as IAS 27 - Separate Financial
Statements which addresses the accounting treatment of investments in separate financial statements). The new standard builds
on existing principles by identifying the concept of control as the determining factor in whether an entity should be included in the
consolidated financial statements of the parent company. The standard provides additional guidance to assist in the determination
of control where this is difficult to assess. The standard is effective retrospectively from 1 January 2013.