Audi 2011 Annual Report Download - page 220

217
Consolidated Financial
Statements
188 Income Statement
189 Statement of Recognized
Income and Expense
190 Balance Sheet
191 Cash Flow Statement
192 Statement of Changes in Equity
Notes to the Consolidated
Financial Statements
194 Development of fixed assets
in the 2011 fiscal year
196 Development of fixed assets
in the 2010 fiscal year
198 General information
204 Recognition and
measurement principles
212 Notes to the Income Statement
218 Notes to the Balance Sheet
227 Additional disclosures
248 Events occurring subsequent
to the balance sheet date
249 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 measured at fair value through profit or loss” category presents the
results from the settlement and measurement of derivative financial instruments not allocated
to hedge accounting.
The “Loans and receivables” category essentially consists of interest income and expenses,
impairment losses on receivables, and factoring expenses.
The net result for available-for-sale financial assets predominantly comprises income from invest-
ments in securities and from other long-term investments not accounted for using the equity
method.
Interest income and expense for financial instruments not measured at fair value
EUR million 2011 2010
Interest income 224 125
Interest expense – 43 – 21
Interest income and expense 181 104
Interest income and expense for financial instruments not measured at fair value constitute part
of the net result for financial instruments that fall into the category of “Loans and receivables.”
Interest income primarily covers interest from the Audi Group’s cash and cash equivalents, fixed
deposits and loans extended. Interest expense largely comprises factoring expenses arising in
connection with the loan asset sales to subsidiaries of Volkswagen AG, Wolfsburg, that are not
part of the Audi Group.
Impairment losses for financial assets by category
EUR million 2011 2010
Measured at fair value 1–
Measured at amortized cost 19 13
Impairment losses 20 13
The impairment losses relate to value adjustments of financial assets, such as impairment losses
on receivables, securities and non-consolidated subsidiaries.
Gains and losses from hedging activities
From the cash flow hedge reserve, the sum of EUR 55 (46) million was included under cost of
sales and other operating expenses.