Chrysler 2015 Annual Report Download - page 143

2015 | ANNUAL REPORT 143
Reclassifications
Certain prior year amounts have been reclassified to conform to the current year presentation. For the year ended
December 31, 2015, the Group is no longer presenting the separate line item Other unusual income/(expenses) within
the Consolidated Income Statement. All amounts previously reported within the Other unusual income/(expenses) line
item have been reclassified into the appropriate line item within the Consolidated Income Statements for the years
ended December 31, 2014 and 2013 based upon the nature of the transaction. For the year ended December31,
2014, of the total €390 million previously presented as Other unusual income/(expenses), €98 million related to the
remeasurement of our Venezuelan Bolivar (“VEF”) denominated net monetary assets and was reclassified to Cost of
sales. In addition, a net €277 million was reclassified to Other income/(expenses), which primarily included the €495
million expense recognized in connection with the execution of the memorandum of understanding (the “MOU”) with
the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (the “UAW”)
entered into by FCA US in January 2014, offset by the non-taxable gain of €223 million on the remeasurement to fair
value of the previously exercised options on approximately 10 percent of FCA US’s membership interest in connection
with the acquisition of the remaining interest in FCA US previously not owned.
For the year ended December31, 2013, the net €499 million previously presented as Other unusual income/
(expenses) included other unusual expenses of €686 million and other unusual income of €187 million. Of the total
other unusual expenses of €686 million, €226 million that related to the write-down of development costs was
reclassified to Research and development costs (Note 4). In addition, €273 million was reclassified to Cost of sales of
which €115 million related to certain voluntary safety recall costs, €57 million related to the impairment charges for the
cast-iron business in the Components segment (Teksid), €55 million related to the impairment of property, plant and
equipment in the EMEA segment and €43 million related to the net charge resulting from the devaluation of the VEF
exchange rate relative to the U.S.$ and the remeasurement on the Group’s VEF denominated net monetary assets
(Note 30). Furthermore, €119 million was reclassified to Other income/(expenses), which included the €56 million
write-off of the book value of the right associated with the acquisition of the remaining interest in FCA US previously
not owned. Of the total other unusual income of €187 million, €166 million related to the impact of the pension
curtailment gain following FCA US’s amendment to its U.S. and Canadian defined benefit pension plans and was
reclassified as a reduction to Cost of sales.
Basis of Consolidation
Subsidiaries
Subsidiaries are entities over which the Group has control. Control is achieved when the Group has power over the
investee, when it is exposed to, or has rights to, variable returns from its involvement with the investee, and has the
ability to use its power over the investee to affect the amount of the investor’s returns. Subsidiaries are consolidated
on a line by line basis from the date which control is achieved by the Group. The Group reassesses whether or not it
controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of
control listed above.
The Group recognizes a non-controlling interest in the acquiree on a transaction-by-transaction basis, either at fair
value or at the non-controlling interest’s share of the recognized amounts of the acquiree’s identifiable net assets.
Net profit or loss and each component of Other comprehensive income/(loss) are attributed to Equity attributable to
owners of the parent and to Non-controlling interests. Total comprehensive income/(loss) of subsidiaries is attributed
to Equity attributable to the owners of the parent and to the non-controlling interest even if this results in a deficit
balance in Non-controlling interests.
Changes in the Group’s ownership interests in a subsidiary that do not result in the Group losing control over the
subsidiary are accounted for as an equity transaction. The carrying amounts of the Equity attributable to owners of the
parent and Non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiary. Any
difference between the carrying amount of the non-controlling interests and the fair value of the consideration paid or
received in the transaction is recognized directly in the Equity attributable to the owners of the parent.