Chrysler 2013 Annual Report Download - page 153

152 Consolidated
Financial Statements
at 31 December 2013
Notes
In addition, the European Union had not yet completed its endorsement process for these standards and amendments at the date of this
Annual report:
On 12 November 2009, the IASB issued IFRS 9 – Financial Instruments. The new standard was reissued in October 2010 and subsequently
amended in November 2013. The standard addresses the classification, measurement and recognition of financial assets and financial
liabilities and hedge accounting. It replaces the relevant parts of IAS 39 – Financial Instruments: recognition and measurement. As part of the
November 2013 amendments, among other, the IASB removed the standard’s mandatory effective date, previously set on 1 January 2015.
This date will be added to the standard when all phases of the IFRS 9 project are completed and a final complete version of the standard is
issued.
On 20 May 2013, the IASB issued the IFRIC Interpretation 21 - Levies, an interpretation of IAS 37 - Provisions, Contingent Liabilities and
Contingent Assets. The interpretation sets out the accounting for an obligation to pay a levy that is not income tax. The interpretation
addresses what the obligating event is that gives rise to pay a levy and when a liability should be recognized. IFRIC 21 is effective for annual
periods beginning on or after 1 January 2014.
On 21 November 2013, the IASB published narrow scope amendments to IAS 19 – Employee benefits entitled “Defined Benefit Plans:
Employee Contributions”. These amendments apply to contributions from employees or third parties to defined benefit plans in order to
simplify their accounting in specific cases. The amendments are effective, retrospectively, for annual periods beginning on or after 1 July
2014 with earlier application permitted.
On 12 December 2013 the IASB issued the Annual Improvements to IFRSs 2010–2012 Cycle and Annual Improvements to IFRSs 2011–
2013 Cycle. The most important topics addressed in these amendments are, among others, the definition of vesting conditions in IFRS
2 – Share based payment, the aggregation of operating segments in IFRS 8 – Operating Segments, the definition of key management
personnel in IAS 24 – Related Party disclosures, the extension of the exclusion from the scope of IFRS 3 – Business Combinations to all
types of joint arrangements (as defined in IFRS 11 – Joint arrangements) and to clarify the application of certain exceptions in IFRS 13 – Fair
value Measurement.
The Group will comply with these new standards and amendments based on their relevant effective dates when endorsed by the European
Union and it will evaluate their potential impacts on the Consolidated financial statements.
Scope of consolidation
Consolidated entities
The Consolidated financial statements at 31 December 2013 includes Fiat S.p.A. and 303 subsidiaries consolidated on a line-by-line basis in
which Fiat S.p.A., directly or indirectly, has a majority of the voting rights, and over which it exercises control or from which it is able to derive
benefit by virtue of its power to govern their corporate financial and operating policies.
There were no significant changes in the scope of consolidation in 2013, although the following minor changes occurred:
on 1 July 2013, the Group, through its wholly owned subsidiary Fiat Group Automobiles S.p.A., acquired full control of the VM Motori
group, which was previously considered a joint venture consolidated by using the equity method. Starting from this date, Fiat Group has
consolidated VM Motori group on a line-by-line basis;
from November 2013, the investment in the Brazilian company, CMP Componentes e Modulos Plasticos Industria e Comercio Ltda, which was
previously classified as held for sale on acquisition, has been consolidated on a line by line basis as a result of changes in the plans for its sale;
from December 2013, the assets and liabilities related to a subsidiary consolidated by the Components operating segment (Fonderie du
Poitou Fonte S.A.S.) were reclassified as Assets and liabilities held for sale (Note 22).