Chrysler 2012 Annual Report Download - page 265

Notes
264 Fiat S.p.A.
Statutory
Financial
Statements
at 31 December
2012
In addition, at the reporting date, the European Union had not yet completed its endorsement process for these standards and amendments:
On 12 November 2009, the IASB issued a new standard IFRS 9 – Financial Instruments that was subsequently amended. The 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 amortized 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 recognized in
Other comprehensive income and are not subsequently reclassified to the income statement
On 17 May 2012, the IASB issued a set of amendments to IFRSs (“Improvements to IFRSs – 2009-2011”) that are applicable retrospectively from
1 January 2013. Set out below are those amendments that could lead to changes in the presentation, recognition or measurement of financial
statement items, excluding those that only regard 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
IAS 1 – Presentation of Financial Statements: the amendment clarifies the way in which comparative information should be presented when an entity
changes accounting policies or retrospectively restates or reclassifies items in its financial statements and when an entity provides comparative
information in addition to the minimum comparative financial statements
IAS 16 – Property, plant and equipment: the amendment clarifies that items such as spare parts, stand-by equipment and servicing equipment, shall
be recognized in accordance with IAS 16 when they meet the definition of Property, plant and equipment, otherwise such items shall be classified as
Inventory
IAS 32 – Financial instruments: Presentation: the amendment eliminates an inconsistency between IAS 12 – Income Taxes and IAS 32 concerning the
recognition of taxation arising from distributions to shareholders, establishing that these shall be recognized in profit or loss to the extent the distribution
refers to income generated by transactions originally recognized in profit or loss
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 its subsidiaries. In addition to the
information provided in Note 27, reference should also be made to the note on Risk Management in the Notes to the Consolidated Financial Statements.