Audi 2014 Annual Report Download - page 242

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE INCOME STATEMENT
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10.2 /
RECONCILIATION OF EXPECTED TO REPORTED INCOME TAX EXPENSE
EUR million 2014 2013
Profit before income tax 5,991 5,323
Expected income tax expense 29.8% (29.5%) 1,785 1,570
Reconciliation:
Divergent foreign tax burden – 25 –5
Tax portion for tax-exempt income 1) – 211 – 180
Tax portion for expenses not deductible for tax purposes 19 23
Tax portion for effects from loss carryforwards and tax credits 1) 47 28
Tax portion for permanent accounting differences –9 – 14
Tax income relating to other periods – 121 –5
Effects of tax rate changes 3 –9
Other tax effects 1) 75 – 99
Income tax expense reported 1,563 1,309
Effective tax rate in % 26.1 24.6
1) The prior-year figures were adjusted to take account of the changes to reporting of tax effects from loss carryforwards and tax credits.
11 / PROFIT TRANSFER TO VOLKSWAGEN AG
The amount of EUR 3,239 (3,182) million will be transferred
to Volkswagen AG, Wolfsburg, under the profit transfer agree-
ment with AUDI AG.
12 / EARNINGS PER SHARE
2014 2013
Profit share of AUDI AG shareholders (EUR million) 4,367 3,961
Weighted average number of shares 43,000,000 43,000,000
Earnings per share in EUR 101.55 92.13
Basic earnings per share are calculated by dividing the share
of profit due to AUDI AG shareholders by the weighted average
number of shares in circulation during the fiscal year.
In the case of AUDI AG, the diluted earnings per share are the
same as the basic earnings per share, since there were no
potential shares of AUDI AG in existence at either December 31,
2014 or December 31, 2013.
Outside shareholders of AUDI AG will receive a compensatory
payment for each no-par share in lieu of a dividend for the
2014 fiscal year. The level of this payment corresponds to the
dividend that is paid on one ordinary share of Volkswagen AG,
Wolfsburg. The dividend payment will be resolved by the General
Meeting of Volkswagen AG on May 5, 2015.
13 / ADDITIONAL DISCLOSURES ON FINANCIAL
INSTRUMENTS IN THE INCOME STATEMENT
13.1 / CATEGORIES
Financial instruments are categorized as follows in accordance
with IFRS 7:
>measured at fair value,
>measured at amortized cost,
>not within the scope of IFRS 7.
Not within the scope of IFRS 7 are, in particular, investments
accounted for using the equity method that are neither finan-
cial instruments as defined in IAS 39 nor as defined in IFRS 7.