Audi 2009 Annual Report Download - page 211

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23 Securities, cash and cash equivalents
Securities include fixed or variable-interest securities and equities in the amount of EUR 821
(789) million.
Cash and cash equivalents essentially comprise credit balances with banks and affiliated compa-
nies amounting to EUR 6,455 (4,833) million. The credit balances with banks are held at various
banks in various different currencies. As part of the cash pool arrangement, liquid assets were
invested with affiliated companies.
24 Equity
Information on the composition and development of equity is provided on pages 182 and 183 in
the Statement of Changes in Equity.
The share capital of AUDI AG is EUR 110,080,000. One share grants an arithmetical share of
EUR 2.56 in the company’s capital. This capital is divided into 43,000,000 no-par bearer shares.
The capital reserves contain premiums paid in connection with the issuance of shares of the
Company. In the year under review, capital reserves rose to EUR 1,924 million as a result of a
contribution in the amount of EUR 308 million by Volkswagen AG (Wolfsburg) to the capital
reserve of AUDI AG.
The opportunities and risks under foreign exchange contracts, currency option transactions and
commodity price hedging transactions serving as hedges for future cash flows are deferred in
the reserve for cash flow hedges with no effect on income. When the cash flow hedges become
due, the results from the settlement of the hedging contracts are reported under the profit from
operating activities.
Unrealized gains and losses from the measurement at fair value of financial assets available for
sale are recognized in the reserve for the market-price measurement of securities. Upon disposal
of the securities, share price gains and losses realized are reported under the financial result.
Adjustments to actuarial assumptions on retirement benefit obligations, with no effect on in-
come, are recognized in the provisions for actuarial gains and losses.
Pursuant to IAS 28.39, foreign currency translation differences that do not affect income from
the accounting of FAW-Volkswagen Automotive Company, Ltd. (Changchun, China) using the
equity method are included in the reserve for investments accounted for using the equity
method.
The shares held by minority interests in the equity capital can be broken down as follows, with
each shareholder holding 100 percent of the shares in the listed companies and to whom the
result achieved by the company is attributable:
Fully consolidated group company Minority interests
AUDI BRUSSELS S.A./N.V., Brussels (Belgium) Volkswagen AG, Wolfsburg
Audi of America, LLC, Herndon (USA) VOLKSWAGEN GROUP OF AMERICA, INC., Herndon (USA)
Audi Canada Inc., Ajax (Canada) Volkswagen Group Canada, Inc., Ajax (Canada)
The balance of EUR 128 (948) million remaining after the transfer of profit to Volkswagen AG is
allocated to the other retained earnings.
Stock option plan
Under the stock option plan of Volkswagen AG (Wolfsburg), the members of the Board of Man-
agement and selected senior managers of the Audi Group were granted the right to acquire
stock options for shares of Volkswagen AG by subscribing to convertible bonds.
In the 1999 to 2006 fiscal years, eight tranches of the stock option plan were issued in total.
The stock option plan was not extended for the period beyond 2006.