Audi 2011 Annual Report Download - page 205

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By virtue of their inclusion in the Audi Group’s Consolidated Financial Statements, the following
companies have fulfilled the requirements of Section 264, Para. 3 of the German Commercial
Code (HGB) and make use of the exemption rule:
– Audi Retail GmbH, Ingolstadt
– Audi Vertriebsbetreuungsgesellschaft mbH, Ingolstadt
– Audi Zentrum Berlin GmbH, Berlin
– Audi Zentrum Frankfurt GmbH, Frankfurt
– Audi Zentrum Hamburg GmbH, Hamburg
– Audi Zentrum Hannover GmbH, Hanover
– Audi Zentrum Leipzig GmbH, Leipzig
– Audi Zentrum Stuttgart GmbH, Stuttgart
– quattro GmbH, Neckarsulm
Participating interests in associated companies
As of the balance sheet date, FAW-Volkswagen Automotive Company, Ltd., Changchun (China),
in which an interest of 10 percent is held, is accounted for using the equity method. Audi is
represented on the management and supervisory board and, as a result, has a significant influ-
ence on the participating interest. This means that it is required to account for the participating
interest using the equity method.
On the basis of this interest, the following values are attributable to the Audi Group:
EUR million 2011 2010
Non-current assets 398 252
Current assets 820 733
Non-current liabilities 79 67
Current liabilities 679 592
Revenues 2,378 1,748
Net profit for the period 270 220
CONSOLIDATION PRINCIPLES
The assets and liabilities of the domestic and foreign companies included in the Consolidated
Financial Statements are recognized in accordance with the standard accounting and measure-
ment policies of the Audi Group.
In the case of subsidiaries that are being consolidated for the first time, the assets and liabilities
are to be measured at their fair value at the time of acquisition. Any realized hidden reserves and
expenses are amortized, depreciated or reversed in accordance with the development of the
corresponding assets and liabilities as part of the subsequent consolidation process. Where the
acquisition values of the investments exceed the Group share in the equity of the relevant company
as calculated in this manner, goodwill is created. Goodwill acquired in a business combination is
tested for impairment regularly at the balance sheet date, and an impairment loss is recognized
if necessary. Within the Audi Group, the predecessor method is applied in relation to common
control transactions. Under this method, the assets and liabilities of the acquired company or
business operations are measured at the gross carrying amounts of the previous parent company.
The predecessor method thus means that no adjustment to the fair value of the acquired assets
and liabilities is performed at the time of acquisition; any goodwill arising during initial consoli-
dation is adjusted against equity, without affecting income. Contingent considerations are meas-
ured at their fair value at the time of acquisition. Subsequent changes to the value of contingent
consideration do not as a rule result in an adjustment of the measurement at the time of acqui-
sition. Other costs of purchase that are not associated with the procurement of equity are not
counted towards the purchase price but are immediately recognized as an expense.