Chrysler 2011 Annual Report Download - page 155

Notes
154 Consolidated
Financial
Statements
at 31 December
2011
On 12 May 2011, the IASB issued IFRS 11 – Joint Arrangements superseding IAS 31 – Interests in Joint Ventures and SIC-13 –
Jointly-controlled Entities - Non-Monetary Contributions by Venturers. The new standard provides the criteria for identifying joint
arrangements by focusing on the rights and obligations of the arrangement rather than its legal form and requires a single method
to account for interests in jointly-controlled entities, the equity method. The standard is effective retrospectively from 1 January
2013. Following the issue of the new standard, IAS 28 – Investments in Associates has been amended to include accounting for
investments in jointly-controlled entities in its scope of application (from the effective date of the standard).
On 12 May 2011, the IASB issued IFRS 12 – Disclosure of Interests in Other Entities, a new and comprehensive standard on
disclosure requirements for all forms of interests in other entities, including subsidiaries, joint arrangements, associates, special
purpose vehicles and other unconsolidated vehicles. The standard is effective for annual periods beginning after 1 January 2013.
On 12 May 2011, the IASB issued IFRS 13 – Fair Value Measurement, clarifying the determination of the fair value for the purpose of
the financial statements and applying to all IFRSs permitting or requiring a fair value measurement or the presentation of disclosures
based on fair value. The standard is effective prospectively from 1 January 2013.
On 16 June 2011, the IASB issued an amendment to IAS 1 – Presentation of Financial Statements requiring companies to group
together items within other comprehensive income that may be reclassified to the profit or loss section of the income statement. The
amendment is applicable for periods beginning on or after 1 July 2012.
On 16 June 2011, the IASB issued an amended version of IAS 19 – Employee Benefits. The amendments make improvements to
the previous version by eliminating the option to defer the recognition of gains and losses, known as the “corridor method”, and by
requiring the whole of the fund’s deficit or surplus to be presented in the statement of financial position, the components of cost
relating to service and net interest to be recognised in profit or loss and actuarial gains and losses arising from the remeasurement of
assets and liabilities at each balance sheet date to be recognised in other comprehensive income. In addition, the return on assets
included in net interest costs must now be calculated using the discount rate applicable to liabilities and no longer the expected
return on the assets. The amendments also introduce the requirement for additional disclosures to be provided in the notes. The
amended version of IAS 19 is applicable on a retrospective basis from 1 January 2013.
On 16 December 2011, the IASB issued certain amendments to IAS 32 – Financial Instruments: Presentation to clarify the application
of certain offsetting criteria for financial assets and financial liabilities in IAS 32. The amendments are effective for annual periods
beginning on or after 1 January 2014 and are required to be applied retrospectively.
On 16 December 2011, the IASB issued certain amendments to IFRS 7 – Financial Instruments: Disclosures. The amendments
require information about the effect or potential effect of netting arrangements for financial assets and liabilities on an entity’s financial
position. Entities are required to apply the amendments for annual reporting periods beginning on or after January 1, 2013, and
interim periods within those annual periods. The required disclosures should be provided retrospectively.
Finally, on 7 October 2010, the IASB issued amendments to IFRS 7 – Financial Instruments: Disclosures. The amendments will enable
users of financial statements to improve their understanding of transfers (“derecognition”) of financial assets, including an understanding
of 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 a transfer transaction is undertaken at the end of a reporting period. Entities are required
to apply the amendments for annual periods beginning on or after 1 July 2011. Application of this amendment is not expected to have
any effects on the measurement of items in the financial statements.