Audi 2013 Annual Report Download - page 270

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ADDITIONAL DISCLOSURES
CONSOLIDATED FINANCIAL STATEMENTS
267
B
37 / MANAGEMENT OF FINANCIAL RISKS
37.1 / HEDGING GUIDELINES AND PRINCIPLES OF
FINANCIAL RISK MANAGEMENT
The principles and responsibilities involved in managing and
controlling risks associated with financial instruments are
stipulated by the Board of Management in accordance with the
Volkswagen Group guidelines and statutory parameters, and
monitored by the Supervisory Board.
Operational risk management is carried out by the Group
Treasury, both at AUDI AG and at Volkswagen AG. The Board of
Management and Supervisory Board of AUDI AG are regularly
briefed on the current risk situation. Additionally, the
Volkswagen Executive Committee for Liquidity and Foreign
Currency is regularly updated on the current financial risks.
Further information can be found in the Management
Report on page 202.
37.2 / CREDIT RISKS
Credit and default risks from financial assets relate to a possible
default by a contractual party and do not exceed the positive
fair values in respect of the contractual party in question. The
risk from non-derivative financial instruments is covered by
value adjustments for loss of receivables. The contractual
partners for cash and capital investments, as well as currency
and commodity hedging instruments, have impeccable credit
standings. Over and above this, the risks are restricted by a
limit system that is based on the credit ratings of international
rating agencies and the equity base of the contractual parties.
The Group’s global business operations and resulting diversifi-
cation meant that there were no major risk concentrations
during the past fiscal year.
// CREDIT QUALITY OF FINANCIAL ASSETS MEASURED AT AMORTIZED COST
EUR million
Gross ca in
amount as of
Dec. 31, 2013
Neither past
due nor
impaired
Past due and
not impaired
Impaired
Trade receivables 3,218 2,684 475 59
Other receivables 1,209 1,129 32 49
of which receivables from loans 396 396 0 –
of which miscellaneous receivables 813 733 31 49
4,427 3,813 507 108
EUR million
Gross ca in
amount as of
Dec. 31, 2012
Neither past
due nor
impaired
Past due and
not impaired
Impaired
Trade receivables 2,313 1,388 859 66
Other receivables 2,345 2,274 22 49
of which receivables from loans 1,731 1,731 0 –
of which miscellaneous receivables 614 543 22 49
4,658 3,663 881 115
The trading partners, borrowers and debtors of the Audi Group
are regularly monitored under the risk management system. All
receivables that are “Neither past due nor impaired,” amounting
to EUR 3,813 (3,663) million, are allocable to risk category 1.
Risk category 1 is the highest rating category within the
Volkswagen Group; it exclusively comprises “Receivables
owing from customers of high creditworthiness.”