Audi 2008 Annual Report Download - page 226

207
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
200 Equity
203 Liabilities
209 Additional disclosures
227 Events occurring subsequent
to the balance sheet date
228 Statement of Interests
held by the Audi Group
The following amounts were recognized in the Income Statement:
EUR million 2008 2007
Current service cost for services provided by the employees in the fiscal year – 64 – 79
Interest cost – 129 – 104
Expected return on plan assets 23 17
Total – 170 – 166
The interest element in pension costs is shown under financing costs. The expected return on
plan assets is also shown under this item.
The provisions for pensions recognized in the Balance Sheet are determined by offsetting the
present value against the fund assets pursuant to IAS 19. The net liability recognized as provi-
sions for pensions developed as follows:
EUR million 2008 2007
Provisions for pensions on January 1 1,957 1,974
Changes in the group of consolidated companies and
first-time adoption of IAS 19 58
Employee benefit expenses 170 166
Actuarial gains (-) / losses (+) – 57 – 51
Pension payments from company assets – 72 – 69
Contributions paid to external pension funds – 59 – 64
Transfers received from affiliated companies 21
Transfers made to affiliated companies – 1– 7
Currency differences 1– 1
Provisions for pensions on December 31 1,946 1,957
of which non-current 1,880 1,891
The experience-based adjustments, i.e. the effects of differences between actuarial assumptions
and what has actually transpired, are presented in the following table:
% 2008 2007
Difference between anticipated and actual performance
as % of the present value of the obligation 0.17 – 1.46
as % of the fair value of the plan assets – 9.88 – 5.26
In detail, the calculation of the retirement benefit obligations is based on the following actuar-
ial assumptions (weighted average):
% Dec. 31, 2008 Dec. 31, 2007
Remuneration trend 2.50 2.50
Retirement benefit trend 1.60 1.60
Discount rate 5.75 5.50
Staff turnover rate 1.20 1.40
Anticipated yield on plan assets 5.00 5.00
The “2005 G Reference Tables” published by HEUBECK-RICHTTAFELN-GmbH served as the bio-
metric basis for calculation of retirement benefits.