Audi 2015 Annual Report Download - page 239

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
RECOGNITION AND MEASUREMENT PRINCIPLES
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Government grants are recorded based on the assessment of
whether there is sufficient certainty that the required condi-
tions are met and the grants will actually be awarded. This
assessment is based on the type of legal entitlement and on
past experience.
When calculating deferred tax assets, assumptions are required
with regard to future taxable income and the dates on which
the deferred tax assets are likely to be realized.
The assumptions and estimates are based on premises that
reflect the facts as known at any given time. In particular, the
circumstances at the time of the preparation of the Consoli-
dated Financial Statements as well as the realistically assumed
future development of the global and industry-specific envi-
ronment are used as a basis for estimating expected future
business development. Given that future business develop-
ment is subject to various uncertain factors, some of which are
outside the Group’s control, the assumptions and estimates
applied continue to be subject to a high level of uncertainty.
This is particularly true of short and medium-term cash flow
forecasts and of the discounting rates used in forecasts.
Developments in this environment that deviate from assump-
tions and are beyond the management’s sphere of influence
may cause the actual amounts to differ from the estimates
originally anticipated. If the actual development varies from
the anticipated development, the premises and, if necessary,
the carrying amounts for the assets and liabilities in question
are adjusted accordingly.
The Audi Group anticipates a slight increase in global economic
growth in 2016. The economy in most industrialized nations
should grow slightly. The vast majority of the emerging markets
should continue to grow faster than the industrialized coun-
tries. However, it does not look as if the comparatively high
growth rates of earlier years will be matched. Overall, as
things currently stand, no major adjustment is expected in the
carrying amounts of assets and liabilities in the Consolidated
Balance Sheet in the 2016 fiscal year.
Management’s estimates and assessments were based in
particular on assumptions regarding the development of the
economy as a whole, the development of automotive and
motorcycle markets, and the development of the basic legal
parameters. These aspects, as well as further assumptions, are
described in detail in the Report on expected developments.