Audi 2010 Annual Report Download - page 221

219
Consolidated Financial
Statements
184 Income Statement
185 Statement of Recognized
Income and Expense
186 Balance Sheet
187 Cash Flow Statement
188 Statement of Changes in Equity
Notes to the Consolidated
Financial Statements
190 Development of fixed assets
in the 2010 fiscal year
192 Development of fixed assets
in the 2009 fiscal year
194 General information
200 Recognition and
measurement principles
207 Notes to the Income Statement
214 Notes to the Balance Sheet
217 Liabilities
223 Additional disclosures
242 Events occurring subsequent
to the balance sheet date
243 Statement of Interests
held by the Audi Group
28 Provisions for pensions
Provisions for pensions are created on the basis of plans to provide retirement, disability and
surviving dependant benefits. The benefit amounts are generally contingent on the length of
service and the remuneration of the employees.
Both defined contribution and defined benefit plans exist within the Audi Group for retirement
benefit arrangements. In the case of defined contribution plans, the Company pays contribu-
tions to public or private-sector pension plans on the basis of statutory or contractual require-
ments, or on a voluntary basis. Payment of these contributions releases the Company from any
other benefit obligations. Current contribution payments are reported as an expense for the year
in question. With regard to the Audi Group they total EUR 269 (261) million. Of this, contribu-
tions of EUR 251 (249) million were paid in Germany toward statutory pension insurance.
The retirement benefit systems are based predominantly on defined benefit plans, with a distinc-
tion being made between systems based on provisions and externally financed benefit systems.
The domestic and foreign benefit claims of those with entitlement to a pension from the company
pension scheme are calculated in accordance with IAS 19 (Employee Benefits) on the basis of
the projected unit credit method. This measures future obligations on the basis of the pro rata
benefit entitlements acquired as of the balance sheet date. For purposes of measurement, trend
assumptions are used for the relevant variables affecting the level of benefits.
The retirement benefit scheme within the Audi Group was evolved into a pension fund model in
Germany on January 1, 2001. The retirement benefit commitments for this model are also clas-
sified as defined benefits in accordance with the requirements of IAS 19. The remuneration-
based annual cost of providing employee benefits is invested in mutual funds on a fiduciary
basis by Volkswagen Pension Trust e.V., Wolfsburg. This model offers employees the opportunity
of increasing their pension entitlements, while providing full risk coverage. As the mutual fund
units administered on a fiduciary basis satisfy the requirements of IAS 19 as plan assets, these
funds were offset against the derived retirement benefit obligations.
The amounts recorded in the Balance Sheet for benefit commitments are presented in the
following table:
EUR million Dec. 31, 2010 Dec. 31, 2009 Dec. 31, 2008 Dec. 31, 2007 Dec. 31, 2006
Present value of externally
funded defined benefit
obligations 679 586 464 368 306
Fair value of plan assets 670 583 471 368 306
Financing status (balance) 9 3 – 7 – –
Due to the limit on a defined
benefit asset amount not
capitalized under IAS 19 – – 7 – –
Present value of defined benefit
obligations not externally funded 2,322 2,096 1,946 1,957 1,974
Provisions for pensions
recognized in the Balance Sheet 2,331 2,098 1,946 1,957 1,974