Audi 2012 Annual Report Download - page 222

225
Consolidated Financial
Statements
202 Income Statement
203 Statement of Recognized
Income and Expense
204 Balance Sheet
205 Cash Flow Statement
206 Statement of Changes in Equity
Notes to the Consolidated
Financial Statements
208 Development of fixed assets
in the 2012 fiscal year
210 Development of fixed assets
in the 2011 fiscal year
212 General information
218 Recognition and
measurement principles
218 Recognition of income
and expenses
218 Intangible assets
219 Property, plant
and equipment
220 Leasing and rental assets
220 Investment property
220 Investments accounted for
using the equity method
220 Impairment tests
221 Financial instruments
224 Other financial assets and
other receivables
224 Deferred tax
224 Inventories
225 Securities, cash and
cash equivalents
225 Provisions for pensions
225 Other provisions
225 Liabilities
226 Government grants
226 Management’s estimates
and assessments
227 Notes to the Income Statement
233 Notes to the Balance Sheet
244 Additional disclosures
266 Events occurring subsequent to
the balance sheet date
267 Statement of Interests
held by the Audi Group
SECURITIES, CASH AND CASH EQUIVALENTS
Securities held as current assets are measured at market value, i.e. at the trading price on the
balance sheet date. Cash and cash equivalents are stated at their nominal value. The cash figures
encompass cash and cash equivalents. Included under cash equivalents are financial resources
that are highly liquid with an insignificant risk of fluctuations in value.
The Audi Group is integrated into the Volkswagen Group’s financial management. As part of
cash pooling arrangements, balances are settled on a daily basis and transformed into amounts
owed to or from Volkswagen AG, Wolfsburg. This promotes the efficiency of both intra-Group
and external transactions and also reduces transaction costs. The cash pool receivables are allo-
cated to cash and cash equivalents on the basis of their character as cash equivalents.
PROVISIONS FOR PENSIONS
Actuarial measurement of provisions for pensions is based on the projected unit credit method
for defined retirement benefit plans as specified in IAS 19 (Employee Benefits). This method
takes account of pensions and entitlements to future pensions known at the balance sheet date
as well as anticipated future pay and pension increases. The actuarial interest rate continues to
be determined on the basis of profits realized on the capital market for top-ranking corporate
bonds. Actuarial gains and losses are reported in a separate line item within equity, with no
effect on income, after taking deferred tax into account.
OTHER PROVISIONS
In accordance with IAS 37, provisions are recognized if an obligation existing toward third parties
is likely to lead to cash outflows and where the amount of the obligation can reliably be estimated.
Pursuant to IAS 37, the other provisions for all discernible risks and uncertain liabilities are
reported at their probable cost and are not offset against recourse entitlements. Provisions
with over one year to maturity are measured at their discounted settlement value as of the
balance sheet date. Market rates are used as the discount rates. A nominal interest rate of
0.7 (1.8) percent was applied domestically. The settlement value also includes the expected
cost increases. The non-current portions of provisions for service anniversary awards and partial
retirement were discounted at 3.2 (4.6) percent. The changes to be applied from 2013 to the
accounting treatment of bonus payment obligations under partial retirement programs are not
expected to lead to any material changes to the net assets, financial position and results of
operations.
LIABILITIES
Non-current liabilities are reported in the Balance Sheet at amortized cost. Any differences be-
tween the historical costs and the repayment value are taken into account using the effective
interest method. Liabilities from financial lease agreements are reported in the Balance Sheet at
the present value of the leasing installments. Current liabilities are recognized at the repayment
value or settlement amounts.