Audi 2013 Annual Report Download - page 259

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE BALANCE SHEET
CONSOLIDATED FINANCIAL STATEMENTS
256
B
The benefit system provides for lifelong pension payments. In
order to take account of the risk of long life, the most up-to-date
generation mortality reference tables HEUBECK-RICHTTAFELN
2005 G are used, as these have already taken account of greater
life expectancy in the future. As a further measure, annual risk
monitoring is carried out by anindependent actuary as part of
the review of the assets held by Volkswagen Pension Trust e.V.
To reduce the inflation risk presented by the adjustment of
current pension payments in line with the rate of inflation, a
non-inflation-linked indexing of pensions has been applied to
pension obligations where legally permissible.
31.8 / AMOUNTS RECOGNIZED THROUGH PROFIT OR LOSS FROM BENEFIT OBLIGATIONS
EUR million 2013 2012
Service cost 132 106
Net interest expense (+)/income (–) 108 113
Balance of amounts from defined benefit obli ations
recognized through profit or loss 240 220
Net interest expense/income includes the interest cost from the
defined benefit obligation and the expected return on plan assets
(net interest approach).
31.9 / DEVELOPMENT OF PROVISIONS FOR PENSIONS
EUR million 2013 2012
Provisions for pensions on January 1 3,470 2,505
Service cost 132 106
Interest cost 136 141
Interest income from plan assets –28 –28
Income/expense from plan assets not recognized in interest income 2 –8
Actuarial gains (–)/losses (+) following changes in demographic assumptions +1 0
Actuarial gains (–)/losses (+) following changes in financial assumptions –317 +899
Actuarial gains (–)/losses (+) following experience-based adjustments +17 +39
Pension payments from company assets –95 –95
Employer contributions to the fund –110 –97
Employee contributions to the fund 0 –
Currency differences –4 –1
Changes in scope of consolidated companies and initial adoption of IAS 19 – 5
Effects from transfers 5 4
Provisions for pensions on December 31 3,209 3,470