Audi 2014 Annual Report Download - page 230

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
GENERAL INFORMATION // RECOGNITION AND MEASUREMENT PRINCIPLES
230 >>
The effects of foreign currency translation on equity are reported
in the reserve for currency translation differences with no effect
on profit or loss. The items in the Income Statement are trans-
lated using weighted average monthly rates. Currency transla-
tion variances arising from the differing exchange rates used in
the Balance Sheet and Income Statement are recognized in
equity, without affecting profit or loss, until the disposal of the
subsidiary.
// DEVELOPMENT OF THE EXCHANGE RATES SERVING AS THE BASIS FOR CURRENCY TRANSLATION
1 EUR in foreign currency Year-end exchange rate Average exchange rate
Dec. 31, 2014 Dec. 31, 2013 2014 2013
Australia AUD 1.4829 1.5423 1.4719 1.3777
Brazil BRL 3.2207 3.2576 3.1211 2.8687
Japan JPY 145.2300 144.7200 140.3061 129.6627
Canada CAD 1.4063 1.4671 1.4661 1.3684
Mexico MXN 17.8679 18.0731 17.6550 16.9641
Switzerland CHF 1.2024 1.2276 1.2146 1.2311
Singapore SGD 1.6058 1.7414 1.6824 1.6619
South Korea KRW 1,324.8000 1,450.9300 1,398.1424 1,453.9121
Taiwan TWD 38.4259 41.0935 40.2518 39.4265
Thailand THB 39.9100 45.1780 43.1469 40.8297
United Kingdom GBP 0.7789 0.8337 0.8061 0.8493
USA USD 1.2141 1.3791 1.3285 1.3281
People’s Republic of China CNY 7.5358 8.3491 8.1858 8.1646
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, i.e. when the risk and reward is
transferred to the customer. Revenue is reported after the
deduction of any discounts.
No revenue is initially realized from the sale of vehicles subject
to buy-back agreements. The difference between the selling
price and the expected buy-back price is recognized on a
straight-line basis over the period between sale and buy-back.
Vehicles that are still included in the accounts are reported
under inventories.
Where additional services have been contractually agreed with
the customer in addition to the sale of a vehicle, such as war-
ranty 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).
Operating expenses are recognized in profit or loss when the
service is used or at the time they are economically incurred.
/ INTANGIBLE ASSETS
Intangible assets acquired for consideration are recognized at
their 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.