Audi 2007 Annual Report Download - page 183

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General information
AUDI AG has the legal form of a German stock corporation (Aktiengesellschaft). Its regis-
tered office is on Ettinger Strasse, Ingolstadt, and is on file in the Commercial Register in
Ingolstadt under HR B 1.
Around 99 percent of the issued capital of AUDI AG is held by Volkswagen AG, of
Wolfsburg, with which a control and profit transfer agreement is in force. The Consolidated
Financial Statements of AUDI AG are included in the consolidated financial statements of
Volkswagen AG, which are on file at the Local Court of Wolfsburg. The purpose of the Com-
pany is the development, production and sale of motor vehicles, other vehicles and engines
of all kinds, together with their accessories, as well as machinery, tools and other technical
articles.
AUDI AG prepares its Consolidated Financial Statements on the basis of the International
Financial Reporting Standards (IFRS) and the interpretations of the International Financial
Reporting Interpretations Committee (IFRIC). All pronouncements of the International Ac-
counting Standards Board (IASB) whose application is mandatory have been observed. The
prior-year figures have been calculated according to the same principles.
The Income Statement is prepared according to the internationally practiced cost of
sales method.
AUDI AG prepares its Consolidated Financial Statements in euros (EUR).
The Consolidated Financial Statements provide a true and fair view of the financial per-
formance and financial position of the Audi Group.
The requirements pursuant to Section 315a of the German Commercial Code (HGB) re-
garding the preparation of consolidated financial statements in accordance with IFRS, as
endorsed by the EU, are met.
All requirements that must be applied under German commercial law are additionally
observed in preparing the Consolidated Financial Statements. The German Corporate Gov-
ernance Code is additionally complied with and is permanently available on the Internet at
www.audi.com/cgk-declaration.
Effects of new or revised standards
The Audi Group applied IFRS 7 (Financial Instruments: Disclosures) for the first time in fiscal
2007 and therefore applied the associated amendment to IAS 1 (Presentation of Financial
Statements). IFRS 7 creates extensive disclosure standards for financial instruments. IAS 1
furthermore requires additional disclosures on capital management. The new requirements
to be applied do not have any impact on the classification or measurement of financial as-
sets or liabilities.
Observance of the following interpretations moreover became mandatory for the first time
during the current fiscal year:
– IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperin-
flationary Economies
– IFRIC 8 Scope of IFRS 2
– IFRIC 9 Reassessment of Embedded Derivatives
– IFRIC 10 Interim Financial Reporting and Impairment
– IFRIC 11 Group and Treasury Share Transactions in accordance with IFRS 2
The initial application of the interpretations had no effect or no material effect on the dis-
closures made in the Consolidated Financial Statements.
A
ccounting principles