Audi 2014 Annual Report Download - page 226

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GENERAL INFORMATION
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GENERAL INFORMATION
AUDI AG has the legal form of a German stock corporation
(Aktiengesellschaft). Its registered office is at Ettinger Strasse,
Ingolstadt, and the Company is recorded in the Commercial
Register of Ingolstadt under HR B 1.
Around 99.55 percent of the subscribed capital of AUDI AG is
held by Volkswagen AG, Wolfsburg, with which a control and
profit transfer agreement exists. The Consolidated Financial
Statements of AUDI AG are included in the Consolidated
Financial Statements of Volkswagen AG, which are held on
file at the Local Court of Wolfsburg. The purpose of the
Company is the development, production and sale of motor
vehicles, other vehicles and engines of all kinds, together
with their accessories, as well as machinery, tools and
other technical articles.
/ ACCOUNTING PRINCIPLES
AUDI AG prepares its Consolidated Financial Statements on
the basis of the International Financial Reporting Standards
(IFRS) and the interpretations of the International Financial
Reporting Standards Interpretations Committee (IFRS IC).
All pronouncements of the International Accounting Standards
Board (IASB), whose application is mandatory in the European
Union (EU), have been observed. The prior-year figures have
been calculated according to the same principles.
The Income Statement is prepared according to the interna-
tionally practiced cost of sales method.
AUDI AG prepares its Consolidated Financial Statements in
euros (EUR). All figures have been rounded in accordance with
standard commercial practice, with the result that minor dis-
crepancies may occur when adding these amounts.
The Consolidated Financial Statements provide a true and
fair view of the net worth, financial position and financial
performance of the Audi Group.
The requirements of Section 315a of the German Commercial
Code (HGB) regarding the preparation of Consolidated Finan-
cial Statements in accordance with IFRS, as endorsed by the EU,
are met.
All requirements that must be applied under German commer-
cial law are additionally observed in preparing the Consoli-
dated Financial Statements. In addition, the requirements of
the German Corporate Governance Code have been adhered to.
The Board of Management prepared the Consolidated Financial
Statements on February 9, 2015. This date marks the end of
the adjusting events period.
// EFFECTS OF NEW OR REVISED STANDARDS
The Audi Group has implemented all of the accounting stan-
dards whose application became mandatory with effect from
the 2014 fiscal year.
IFRS 10 governs the determination of the entities to be
included in consolidation and the form of inclusion of subsidi-
aries in the Consolidated Financial Statements. IFRS 10 has
resulted in a standardized control concept. Control exists when
decision-making rights are held with respect to the relevant
activities that can be used to affect own variable returns. Near-
ly all control relationships within the Audi Group are based on
voting or similar rights. All of the material special purpose
entities and/or structured entities are already consolidated.
The revision of the control concept therefore does not result in
any changes. In other words, no companies need to be consoli-
dated for the first time or removed from the group of consoli-
dated companies.
IFRS 11 governs the definition and reporting of joint arrange-
ments. The standard distinguishes between joint operations
and joint ventures. A joint operation exists when the compa-
nies with joint control have rights to the assets and obligations
for the liabilities resulting from the joint activity. With joint
ventures, by contrast, the companies are only entitled to a
share of the net assets. Applying IFRS 11 does not result in any
changes for the Audi Group.
IFRS 12 deals with the disclosure requirements for subsidiaries,
joint arrangements, associated companies and structured enti-
ties. The extent of the information that must be disclosed is
increased by IFRS 12.
The other accounting standards to be applied for the first time
in the 2014 fiscal year have no significant impact on the presen-
tation of net worth, financial position and financial performance.
// NEW OR REVISED STANDARDS NOT APPLIED
The following new or revised accounting standards already
approved by the IASB were not applied in the Consolidated
Financial Statements for the 2014 fiscal year because their
application was not yet mandatory: