Chrysler 2014 Annual Report Download - page 238

236 2014 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
An analysis of Other current liabilities (excluding Accrued expenses and deferred income) by due date was as follows:
At December 31,
2014 2013
Due
within
one year
Due
between
one
and five
years
Due
beyond
five years Total
Due
within
one
year
Due
between
one
and five
years
Due
beyond
five years Total
(€ million)
Total Other current liabilities (excluding
Accrued expenses and deferred income) 7,248 1,230 25 8,503 5,731 840 22 6,593
Advances on buy-back agreements refers to buy-back agreements entered into by the Group and includes the price
received for the product recognized as an advance at the date of the sale, and subsequently, the repurchase price
and the remaining lease installments yet to be recognized.
Indirect tax payables includes taxes on commercial transactions accrued by the Brazilian subsidiary, FIASA, for which
the company (as well as a number of important industrial groups which operate in Brazil) is awaiting the decision by
the Supreme Court regarding its claim alleging double taxation. In March 2007, FIASA received a preliminary trial
court decision allowing the payment of such tax on a taxable base consistent with the Group’s position. Since it is
a preliminary decision and the amount may be required to be paid to the tax authorities at any time, the difference
between the tax payments as preliminary allowed and the full amount determined as required by the legislation still in
force is recognized as a current liability due between one and five years. Timing for the Supreme Court decision is not
predictable.
Included within Other current liabilities is the outstanding obligation of €417 million arising from the MOU signed
by FCA US and the UAW. For further information on the MOU refer to the section —Acquisition of the remaining
ownership interest in FCA US.
Deferred income includes the revenues not yet recognized in relation to separately-priced extended warranties and
service contracts offered by FCA US. These revenues will be recognized in the Consolidated income statement over
the contract period in proportion to the costs expected to be incurred based on historical information.
30. Fair value measurement
IFRS 13 - Fair Value Measurement establishes a hierarchy that categorizes into three levels the inputs to the valuation
techniques used to measure fair value by giving the highest priority to quoted prices (unadjusted) in active markets
for identical assets and liabilities (level 1 inputs) and the lowest priority to unobservable inputs (level 3 inputs). In some
cases, the inputs used to measure the fair value of an asset or a liability might be categorized within different levels of
the fair value hierarchy. In those cases, the fair value measurement is categorized in its entirety in the same level of the
fair value hierarchy at the lowest level input that is significant to the entire measurement.
Levels used in the hierarchy are as follows:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities that the Group can
access at the measurement date.
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the assets or
liabilities, either directly or indirectly.
Level 3 inputs are unobservable inputs for the assets and liabilities.