Audi 2012 Annual Report Download - page 213

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The following table shows the composition of the Audi Group:
Total 2012 2011
AUDI AG and fully consolidated subsidiaries
Germany 6 10
Other countries 32 22
Investments accounted for using the equity method
Other countries 2 1
Non-consolidated subsidiaries
Germany 20 16
Other countries 13 10
Total 73 59
The Audi Group does not wholly own Italdesign Giugiaro S.p.A., Turin (Italy) and PSW automotive
engineering GmbH. However, given that in business terms Audi also bears the risks and has
access to the economic benefits of the remaining shares it does not own, both of these compa-
nies are included in the Consolidated Financial Statements on a 100 percent basis.
The principal companies within the Audi Group are listed following the Notes.
The full list of companies in which shares are held is recorded in the Commercial Register of
Ingolstadt under HR B 1 and is also available on the Audi website at www.audi.com/subsidiaries.
This list can additionally be requested directly from AUDI AG, Financial Communication/
Financial Analysis, I/FF-3, 85045 Ingolstadt, Germany.
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 Akademie GmbH, Ingolstadt
– Audi Vertriebsbetreuungsgesellschaft mbH, Ingolstadt
– quattro GmbH, Neckarsulm
Affiliated companies, as defined here, are Volkswagen AG, Wolfsburg, and its subsidiaries, which
are not fully consolidated in the Audi Consolidated Financial Statements.
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 AG 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.
Additionally, in March 2012 an AUDI AG subsidiary acquired a 30 percent holding in Volkswa-
gen Group Services S.A., Brussels (Belgium). Volkswagen Group Services S.A. is also accounted
for using the equity method in the Consolidated Financial Statements.
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 com-
pany as calculated in this manner, goodwill is created. Goodwill acquired in a business combina-
tion is tested for impairment regularly at the balance sheet date, and an impairment loss is