Audi 2006 Annual Report Download - page 174

1 7 2
The following table shows the composition of the Audi Group:
Total 2006 2005
AUDI AG and fully consolidated subsidiaries
Germany 3 5
Other countries 12 12
Enterprises whose shares are accounted for
using the equity method
Germany 0 1
Other countries 2 2
Subsidiaries reported at cost of purchase and other associates
Germany 10 10
Other countries 7 5
34 35
The principal companies within the Audi Group are listed after the Notes. A list of all com-
panies in which shares are held is filed with the Ingolstadt Commercial Register under
HR B 1, and published on the Audi website under www.audi.com/subsidiaries. This list can
in addition be requested directly from AUDI AG, Finance Analysis and Publications I/FF-12,
85045 Ingolstadt, Germany.
As a result of their inclusion in Audi’s consolidated financial statements, quattro GmbH,
Neckarsulm, and Audi Vertriebsbetreuungsgesellschaft mbH, Ingolstadt, satisfy the condi-
tions of Section 264 Para. 3 of German Commercial Code and make use of the exemption
rule.
The assets and liabilities of the domestic and foreign companies included in the consoli-
dated financial statements are accounted for in accordance with the standard accounting
policies of the Audi Group.
For subsidiaries fully consolidated for the first time, the assets and liabilities are to be
measured at their fair value at the time of acquisition. Thus, differences between pre-
acquisition carrying amounts and fair values of assets acquired and liabilities assumed are
carried, depreciated or dissolved in accordance with the corresponding assets and liabili-
ties. If the purchase prices of the shares exceed the group’s interest in the equity calculated
in this way for the individual company, goodwill arises. Goodwill acquired in a business
combination is tested for impairment regularly, at the balance sheet date, and an impair-
ment loss recognised if necessary.
Receivables and liabilities between consolidated companies are offset, and expenses and
income eliminated. Intra-group profits and losses are eliminated from group inventories and
fixed assets.
Consolidation processes affecting income are subject to deferrals of income taxes, with
deferred tax assets and liabilities offset where the term and tax creditor coincide.
The same accounting policies are used to determine the pro rata equity for the compa-
nies of the Audi Group that are measured using the equity method (FAW-Volkswagen Auto-
motive Company, Ltd., Changchun (China), and YANASE Audi Sales Company Ltd., Tokyo
(Japan)). The last set of audited accounts of the company in question serves as the basis for
this purpose.
Consolidation principles