Chrysler 2015 Annual Report Download - page 154

154 2015 | ANNUAL REPORT
Consolidated
Financial Statements
Notes to the Consolidated
Financial Statements
New standards and amendments effective from January1, 2015
The following new standards and amendments applicable from January1, 2015 were adopted by the Group. There
was no effect from the adoption of these amendments:
The Group adopted the narrow scope amendments to IAS 19 – Employee benefits entitled “Defined Benefit Plans:
Employee Contributions” which apply to contributions from employees or third parties to defined benefit plans in
order to simplify their accounting in specific cases.
The Group adopted the IASB’s 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 payments, the disclosure on judgment used in the aggregation
of operating segments in IFRS 8 – Operating Segments, the identification and disclosure of a related party transaction
that arises when a management entity provides key management personnel service to a reporting entity 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 and to clarify the application of certain exceptions in IFRS 13 – Fair value Measurement.
New standards, amendments and interpretations not yet effective
The following new standards and amendments applicable from January1, 2016 were issued by the IASB. For new
standards and amendments effective after January 1, 2017, we are currently evaluating the implementation method
and the impact of adoption on our Consolidated Financial Statements. We will comply with the relevant guidance no
later than their respective effective dates.
In May2014, the IASB issued amendments to IFRS 11 – Joint arrangements: Accounting for acquisitions of
interests in joint operations which clarify the accounting for acquisitions of an interest in a joint operation that
constitutes a business. The amendments are effective prospectively for annual periods beginning on or after
January 1, 2016 with earlier application permitted for any new acquisition. No significant effect is expected from the
adoption of these amendments.
In May2014, the IASB issued an amendment to IAS 16 – Property, Plant and Equipment and to IAS 38 – Intangible
Assets. The IASB has clarified that the use of revenue-based methods to calculate the depreciation of an asset is
not appropriate because revenue generated by an activity that includes the use of an asset generally reflects factors
other than the consumption of the economic benefits embodied in the asset. The IASB also clarified that revenue
is generally presumed to be an inappropriate basis for measuring the consumption of the economic benefits
embodied in an intangible asset. This presumption, however, can be rebutted in certain limited circumstances.
These amendments are effective for annual periods beginning on or after January1, 2016, with early application
permitted. No significant effect is expected from the adoption of these amendments.
In May2014, the IASB issued IFRS 15 – Revenue from contracts with customers. The standard requires a company
to recognize revenue upon transfer of control of goods or services to a customer at an amount that reflects the
consideration it expects to receive. This new revenue recognition model defines a five step process to achieve
this objective. The updated guidance also requires additional disclosures about the nature, amount, timing and
uncertainty of revenue and cash flows arising from customer contracts. On September 11,2015, the IASB issued
an amendment to this standard, formalizing the deferral of the effective date for periods beginning January 1, 2018,
with early adoption permitted.
In July2014, the IASB issued IFRS 9 – Financial Instruments. The improvements introduced by the new standard
include a logical approach for classification and measurement of financial instruments driven by cash flow
characteristics and the business model in which an asset is held, a single “expected loss” impairment model
for financial assets and a substantially reformed approach for hedge accounting. The standard is effective,
retrospectively with limited exceptions, for annual periods beginning on or after January1, 2018 with earlier
adoption permitted.