Audi 2007 Annual Report Download - page 184

181
In accordance with the specifications of IAS 8 and in conjunction with the transitional
provisions of IFRS 2, the application of IFRIC 11 (IFRS 2 Group and Treasury Share Transac-
tions) was implemented in advance of the requirement.
New or revised standards not applied
The following new or amended accounting standards already approved by the IASB were
not applied in the Consolidated Financial Statements for the 2007 fiscal year because their
application was not yet mandatory:
Standard/
Interpretation
Mandatory
effective
Endorsed by
EU*
Anticipated effects
IFRS 8 Operating Segments Jan. 1, 2009 Yes Segment reporting
IAS 1 Presentation of Financial Statements Jan. 1, 2009 No
Reclassification of financial
statement components
IAS 23 Borrowing Costs Jan. 1, 2009 No
Increase in carrying
amount of qualifying assets
IFRIC 12 Service Concession Arrangements Jan. 1, 2008 No None
IFRIC 13 Customer Loyalty Programs July 1, 2008 No None
IFRIC 14
The Limit on a Defined Benefit Asset, Minimum
Funding Requirements and their Interaction Jan. 1, 2008 No No significant
* as of December 31, 2007
In addition to AUDI AG, the Consolidated Financial Statements include all principal compa-
nies in which AUDI AG can directly or indirectly determine the financial and business policy
in order to benefit from the activities of the companies (subsidiaries) in question. Consolida-
tion begins at that point in time at which it acquires the opportunity for control; it ends
when that opportunity ceases to be available.
Associated companies are accounted for using the equity method.
Subsidiaries excluded from consolidation and participating interests are always reported
at their cost of acquisition, because no active market exists for the shares of these compa-
nies and no fair value can reliably be determined with a justifiable amount of effort. These
subsidiaries are substantially dormant companies or companies with only limited business
operations.
The following companies have been consolidated since December 31, 2006:
VOLKSWAGEN GROUP FIRENZE S.P.A., which was established in September 2006; Audi Retail
GmbH, which was established at the end of 2006; Audi Zentrum Hannover GmbH, which was
acquired as of January 1, 2007; as well as Audi of America, LLC and Audi Canada Inc., which
were established as of January 1, 2007, and had to be consolidated in order to satisfy the
requirements of IAS 27.13, Sentence 2.
The Group