Audi 2008 Annual Report Download - page 210

191
Consolidated Financial
Statements
170 Income Statement
171 Balance Sheet
172 Cash Flow Statement
173 Statement of Changes in Equity
Notes to the Consolidated
Financial Statements
174 Development of
fixed assets 2008
176 Development of
fixed assets 2007
178 General information
183 Recognition and
measurement principles
189 Notes to the Income
Statement
196 Notes to the Balance Sheet
209 Additional disclosures
227 Events occurring subsequent
to the balance sheet date
228 Statement of Interests
held by the Audi Group
8 Financing costs
EUR million 2008 2007
Interest and similar expenses – 132 – 153
of which to affiliated companies – 130 – 152
Interest expense – 132 – 153
Interest effect from the measurement of provisions for pensions – 106 – 87
Interest effect from the measurement of other provisions – 55 3
Interest on provisions – 161 – 84
Financing costs – 293 – 237
Interest income and expense are attributed on an accrual basis.
The positive interest effect in the prior year from the measurement of other provisions was
attributable to a rise in the discount rate following a rise in the domestic interest rate, and to
changed maturities.
9 Other financial results
EUR million 2008 2007
Investment result 123 5
Income from investments 39 25
Income from profit transfer agreements 45
Income from reversal of impairment losses on investments 70 –
Income from the disposal of investments 33 3
Expenses from the transfer of losses – 16 – 7
Expenses from investments – 7– 21
Net income from the sale of securities – 24 13
Impairments on securities – 60 –
Income and expense from fair value measurement of
derivative financial instruments 41 36
Interest and similar income 483 346
of which from affiliated companies 396 268
Other income 78 –
of which from affiliated companies 78 –
Total other financial results 641 400
Income from investments primarily relates to a share in the profits of Volkswagen Logistics
GmbH & Co. OHG (Wolfsburg).
Income from the reversal of impairment losses on investments and from the disposal of in-
vestments resulted from the sale of AUDI DO BRASIL E CIA. (Curitiba, Brazil). Following the
removal of this company from the group of consolidated companies, all of the company’s assets
and liabilities were subject to remeasurement under the rules of IFRS 5. In this regard, value
adjustments made in previous years on an investment held by AUDI DO BRASIL E CIA. in a Brazil-
ian partnership were reversed. This reinstatement resulted in extraordinary income of EUR 70
million. Additionally, a gain of EUR 33 million was realized from the sale of the investment.
The income and expense from the fair value measurement of derivative financial instruments
include the ineffective portions of cash flow hedges as well as fair value fluctuations in deriva-
tive financial instruments that do not fully meet the effectiveness criteria defined in IAS 39. The
total position in relation to hedging instruments is presented under Note 34.4, “Methods of
monitoring the effectiveness of hedging relationships.”
Interest income is attributed on an accrual basis.