Audi 2007 Annual Report Download - page 201

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198
Notes to the Balance Sheet
14 Intangible assets
EUR million Dec. 31, 2007 Dec. 31, 2006
Concessions, industrial property rights and similar rights and
values, as well as licenses thereto 99 79
Goodwill 172
Development expenditure recognized as an intangible asset
Products currently under development 472 852
Products currently in use 1,451 1,230
Payments on account for intangible assets 2
Total 2,022 2,335
A reduction for impairment in the amount of EUR 177 million was applied to the goodwill of
two fully consolidated European sales subsidiaries in view of increasingly intense competi-
tion and signs of stagnation in their respective market environments.
Research and development expenditure
EUR million 2007 2006
Research expenditure and development expenditure
not recognized as an intangible asset 1,570 1,077
Amortization and disposals of development expenditure
recognized as an intangible asset 656 905
Total 2,226 1,982
Spending on research and development activities in the 2007 fiscal year totaled EUR 2,067
(1,702) million, EUR 497 (625) million of which satisfy the criteria for recognition as an asset
under IAS 38.
15 Property, plant and equipment
EUR million Dec. 31, 2007 Dec. 31, 2006
Land, land rights and buildings, including buildings on land
owned by others 1,748 1,692
Plant and machinery 1,236 1,054
Furniture, fixtures and office equipment 1,743 1,699
of which finance leases 3 1
Payments on account and assets under construction 451 578
Total 5,178 5,023
The carrying amounts for finance leases correspond to their fair values.
Payments totaling EUR 67 (57) million for assets rented on the basis of operating lease
agreements were recognized as an expense.