Chrysler 2011 Annual Report Download - page 281

Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2011
Notes
280
Accounting standards, amendments and interpretations not yet applicable and not early adopted by the Company
At the date of these financial statements, the European Union had not yet endorsed the following standards and amendments, with
the exception of the Amendment to IFRS 7 – Financial Instruments: Disclosures (7 October 2010), details of which are provided at the
end of this section:
On 12 November 2009, the IASB issued IFRS 9 – Financial Instruments, which was later amended. The new standard, applicable
retrospectively from 1 January 2015, represents completion of the first phase of a project to replace IAS 39 and introduces new
requirements for classification and measurement of 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 amendment 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. Under the new standard, these changes must be recognized in other comprehensive income
rather than through profit or loss.
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. The
amendment must be adopted retrospectively from 1 January 2012.
On 12 May 2011, the IASB issued IFRS 10 – Consolidated Financial Statements that will replace SIC-12 – Consolidation – Special
Purpose Entities and parts of IAS 27 – Consolidated and Separate Financial Statements (to be renamed Separate Financial
Statements) which addresses accounting treatment for investments in separate financial statements. There are no substantial
changes from the previous version. IFRS 10 builds on existing principles by identifying the concept of control as the determining factor
in whether an entity should be included within the consolidated financial statements of the parent company. The standard provides
additional guidance for situations where control may be difficult to determine. IFRS 10 and IAS 27 are effective retrospectively from
1 January 2013.
On 12 May 2011, the IASB issued IFRS 11 – Joint Arrangements which supersedes IAS 31 – Interests in Joint Ventures and SIC-
13 – Jointly-controlled Entities – Non-monetary Contributions by Venturers. The new standard sets out criteria for identifying joint
arrangements, by focusing on the rights and obligations of the arrangement rather than its legal form, and defines rules for treatment
of joint operations in the separate financial statements. The standard is effective retrospectively from 1 January 2013.
On 12 May 2011, the IASB issued IFRS 13 – Fair Value Measurement, which clarifies rules for determination of fair value for the
purposes of financial reporting and applies to all IFRS that require or allow fair value measurement or disclosures based on fair value.
The standard is applicable prospectively from 1 January 2013.
On 16 June 2011, the IASB issued an amendment to IAS 1 – Presentation of Financial Statements requiring entities to group
together items within other comprehensive income that might subsequently be reclassified to the profit or loss section and those
that will not be reclassified subsequently to the profit or loss section. The amendment is applicable for annual periods beginning on
or after 1 July 2012.
On 16 June 2011, the IASB issued an amended version of IAS 19 – Employee Benefits which eliminates the option to defer
recognition of gains and losses, known as the “corridor approach”, and requires any plan deficit or surplus to be presented in
the statement of financial position, the components of cost relating to service and net interest to be recognized in profit or loss,
and actuarial gains and losses arising from the remeasurement of liabilities to be recognized in other comprehensive income. The
amendment also introduces additional disclosure requirements. The amendment is applicable retrospectively from 1 January 2013.