Key accounting policies Essay Example

Key accounting policies Essay Fiat group put into practice an interpretation IFRIC 4 as of January 1, 2006. To be very particular about the interpretation it specifies that an arrangement contains a lease if it depends on the use of a particular asset and hand over a right to control the use of that asset. An amendment to IAS 39 titled Financial Instrument Recognition and Measurement to the foreign currency risk of a highly probable permit intragroup forecast transaction to qualify as the hedged element in a cash flow hedge in consolidated financial statements, which was released in 2005. The amendment states that the operation is denominated in a currency which ought to be different from the functional currency of the body which enters to that deal. Moreover the foreign currency risk will have an impact on consolidated financial statements. Another amendment to IAS 39 was issued by ISAB which concerned recognition and measurement to limit the use of the opportunity to determine any financial asset or liability to be measured at accurate value via profit and loss. An alteration under the title Group and Treasury Share Transactions was released on November, 2006. The amendment set ups that share based payment arrangements in which an entity gets services as consideration for its own equity instruments must be accounted for as equity-settled. Fiat group has introduced this interpretation in January, 2006. Reassessment of Embedded Derivatives was released on March 3, 2006. It demands evaluating by an entity if implanted derivative is require to be cut off from the host contract and accounted for a derivative when the body first becomes a party to the deal. The ISAB released the IFRS 8 in 2006, 30 November. We will write a custom essay sample on Key accounting policies specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Key accounting policies specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Key accounting policies specifically for you FOR ONLY $16.38 $13.9/page Hire Writer It is about new standard which requires the information within segment reporting to be based upon the mechanism of the entity that management board uses to decide about operational issues. Disclosure Fiat keeps a continuous contact with the Shareholders. The contact policy is an open communication. A lot of presentations are held regularly to provide crucial events. Furthermore, seminars were introduced in order to extend the information about Fiat group performance. Official website www. fiatgroup. com with an intention to provide historical financial data, real time updates on Fiat stock and periodic publications.