Audi 2006 Annual Report Download - page 187
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1 8 5
In accordance with IAS 36, impairment of this goodwill is tested at the end of the year.
The Audi Group uses the value in use as the basis for determining any possible impairment.
The planning data was prepared on the basis of available knowledge. A slight increase in
demand for cars in Italy is expected.
Research and development expenditure recognised as an expense
EUR million 2006 2005
Research expenditure and development expenditure
not recognised as an intangible asset 1,077 999
Amortisation and disposals of development expenditure
recognised as an intangible asset 905 586
Total research and development expenditure
recognised as an expense 1,982 1,585
Spending on research and development activities in the 2006 financial year totalled
EUR 1,702 (1,542) million. Of this total, EUR 625 (544) million satisfy the criteria for recogni-
tion as an asset according to IAS 38.
1 4 Property, plant and equipment
EUR million Dec. 31, 2006 Dec. 31, 2005
Land, land rights and buildings, including buildings on land
owned by others 1,692 1,702
Plant and machinery 1,054 1,152
Furniture, fixtures and office equipment 1,699 2,014
of which finance lease 1 3
Payments on account and assets in course of construction 578 353
5,023 5,221
The carrying amounts for the item “Finance lease” correspond to the fair values.
Payments totalling EUR 57 (53) million for assets rented on the basis of operating lease
agreements were recognised as an expense.
There are no significant restrictions on ownership and disposal for the reported property,
plant and equipment.
1 5 Investment property
Land and buildings held for the purpose of generating rental income (investment property
pursuant to IAS 40) are reported under investment property. The fair value of investment
property amounts to EUR 9 (10) million.