Audi 2012 Annual Report Download - page 215

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The development of the exchange rates serving as the basis for currency translation is shown
below:
1 EUR in foreign currency Dec. 31, 2012 Dec. 31, 2011 2012 2011
Year-end exchange rate Average exchange rate
Australia AUD 1.2712 1.2723 1.2407 1.3484
Brazil BRL 2.7036 2.4159 2.5084 2.3265
United Kingdom GBP 0.8161 0.8353 0.8109 0.8679
Japan JPY 113.6100 100.2000 102.4919 110.9586
Canada CAD 1.3137 1.3215 1.2842 1.3761
Mexico MXN 17.1845 18.0512 16.9029 17.2877
Switzerland CHF 1.2072 1.2156 1.2053 1.2326
Singapore SGD 1.6111 1.6819 1.6055 1.7489
South Korea KRW 1,406.2300 1,498.6900 1,447.6913 1,541.2341
Taiwan TWD 38.3200 39.2297 38.0004 40.9119
Thailand THB 40.3470 40.9910 39.9276 42.4288
USA USD 1.3194 1.2939 1.2848 1.3920
People’s Republic of China CNY 8.2207 8.1588 8.1052 8.9960
RECOGNITION AND MEASUREMENT PRINCIPLES
RECOGNITION OF INCOME AND EXPENSES
Revenue, interest income and other operating income are always recorded when the services are
rendered or the goods or products are delivered (in other words, when the risk and reward is
transferred to the customer).
Proceeds from the sale of vehicles for which buy-back agreements exist are not realized imme-
diately, but instead are realized on a straight-line basis over the period between sale and buy-
back, on the basis of the difference between the selling price and the anticipated buy-back price.
These vehicles are reported under inventories.
Where additional services have been contractually agreed with the customer in addition to the sale
of a vehicle, such as warranty extensions or the completion of maintenance work over a fixed
period, the related revenues and expenses are recorded in the Income Statement in accordance
with the provisions of IAS 18 governing arrangements with multiple deliverables based on the
economic content of the individual contractual components (partial services).
Performance-based grants are recognized as income.
Operating expenses are recognized as income when the service is used or at the time they are
economically incurred.
INTANGIBLE ASSETS
Intangible assets acquired for consideration are recognized at cost of purchase, taking into
account ancillary costs and cost reductions, and are amortized on a scheduled straight-line basis
over their useful life.
Concessions, rights and licenses relate to purchased software, rights of use and subsidies paid.
Brand names from business combinations generally have an indefinite useful life and are there-
fore not amortized. They are tested regularly for impairment.
Research costs are treated as current expenses in accordance with IAS 38. The development
expenditure for products going into series production is recognized as an intangible asset, pro-
vided that production of these products is likely to bring economic benefit to the Audi Group. If
the conditions stated in IAS 38 for capitalization are not met, the costs are expensed in the
Income Statement in the year in which they occur.