Audi 2008 Annual Report Download - page 214

195
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
The net results for financial instruments include the net income or expense from interest, fair
value measurements, foreign currency translation, reductions for impairment and disposal
gains.
The “Financial instruments at fair value through profit or loss” category presents the results
from the settlement and measurement of commodity futures. The “Loans and receivables”
category essentially consists of factoring expenses. The net result for available-for-sale
financial assets predominantly comprises income from financial investments and investments
in securities.
The financial instruments are accounted for and measured in accordance with IAS 39 and are
described in the recognition and measurement principles under “Financial instruments.”
Interest income and expense for financial instruments not measured at fair value
EUR million 2008 2007
Interest income 26 28
Interest expense – 94 – 153
Interest income and expense – 68 – 125
Interest income and expense for financial instruments not measured at fair value constitute
part of the net result for financial instruments, which come under the category of “Loans and
receivables.” Interest expense here largely comprises factoring expenses arising in connection
with the loan asset sales to subsidiaries of Volkswagen AG (Wolfsburg) that do not belong to
the Audi Group.
Impairment losses for financial assets by category
EUR million 2008 2007
Measured at fair value 60 –
Measured at amortized cost 37 35
Impairment losses 97 35
The impairment losses relate to value adjustments of financial assets, such as value adjust-
ments of receivables, securities and non-consolidated subsidiaries.
No impairment was applied to financial instruments falling outside the scope of IFRS 7.
Gains and losses from hedging activities
From the cash flow hedge reserve the sum of EUR 553 (298) million was included under other
operating expenses.