Chrysler 2013 Annual Report Download - page 136

135
Consolidated
Financial Statements
at 31 December 2013
The fair value of any investment retained in the former subsidiary at the date when control is lost shall be regarded as the fair value on initial
recognition of a financial assets in accordance with IAS 39 – Financial instruments: recognition and measurement or, when appropriate, the
cost on initial recognition of an investment in an associate or jointly controlled entity.
Jointly controlled entities
Jointly controlled entities are enterprises in which the Group has contractually agreed to share control or for which a contractual arrangement
exists whereby two or more parties undertake an economic activity that is subject to joint control. Investments in jointly controlled entities are
accounted for using the equity method from the date that joint control commences until the date that joint control ceases.
Associates
Associates are entities over which the Group has significant influence, as defined in IAS 28 – Investments in Associates, but not control or
joint control over the financial and operating policies. Investments in associates are accounted for using the equity method from the date that
significant influence commences until the date it ceases. When the Group’s share of losses of an associate, if any, exceeds the carrying amount
of the associate in the Group’s balance sheet, the carrying amount is reduced to nil and recognition of further losses is discontinued except to
the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associates.
Investments in other companies
Investments in other companies that are available-for-sale financial assets are measured at fair value, when this can be reliably determined.
Gains or losses arising from changes in fair value are recognized in Other comprehensive income/(losses) until the assets are sold or are
impaired; at that time, the cumulative Other comprehensive income/(losses) are recognized in the Income statement. Investments in other
companies for which fair value is not available are stated at cost less any impairment losses.
Dividends received are included in Other income/(expenses) from investments.
Transactions eliminated in consolidation
All significant intragroup balances and transactions and any unrealized gains and losses arising from intragroup transactions are eliminated in
preparing the Consolidated financial statements. Unrealized gains and losses arising from transactions with associates and jointly controlled
entities are eliminated to the extent of the Group’s interest in those entities.
Foreign currency transactions
The functional currency of the Group’s entities is the currency of their primary economic environment. In individual companies, transactions
in foreign currencies are recorded at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated
in foreign currencies at the balance sheet date are translated at the exchange rate prevailing at that date. Exchange differences arising on the
settlement of monetary items or on reporting monetary items at rates different from those at which they were initially recorded during the period
or in previous financial statements, are recognized in the Income statement.