Audi 2015 Annual Report Download - page 242

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE INCOME STATEMENT
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9 / OTHER FINANCIAL RESULTS
EUR million 2015 2014
Result from participations 68 53
of which income from profit transfer agreements 3 3
Result from disposals of securities 25 –1
Income and expense from the measurement of
non-derivative financial instruments – 20 0
Write-ups on non-derivative financial instruments 5 7
Income and expense from fair value measurement of
derivative financial instruments – 540 – 35
Interest and similar income 139 131
Other income 476 485
Other financial results 152 639
Result from participations mainly comprises a share in the
profits of Volkswagen Logistics GmbH & Co. OHG, Wolfsburg.
It also includes write-downs on participations. The income and
expense from the fair value measurement of derivative finan-
cial instruments encompass the ineffective portions of cash
flow hedges and the fair value fluctuations of derivative finan-
cial instruments that do not comply in full with the effective-
ness criteria of IAS 39. The total position in relation to hedging
instruments is presented under Note 36.5, “Methods of moni-
toring the effectiveness of hedging relationships.” Interest
income is attributed on an accrual basis.
10 / INCOME TAX EXPENSE
Income tax expense includes taxes passed on by Volkswagen AG,
Wolfsburg, on the basis of the single-entity relationship between
the two companies for tax purposes, along with taxes owed by
AUDI AG and its consolidated subsidiaries, as well as deferred
taxes.
EUR 930 (1,213) million of the actual income tax expense was
charged to Volkswagen AG.
EUR million 2015 2014
Actual income tax expense 1,301 1,499
of which in Germany 994 1,257
of which in foreign countries 308 242
of which income from the dissolution of tax provisions –5 – 11
Deferred tax income/expense – 315 64
of which in Germany 96 – 31
of which in foreign countries – 411 95
Income tax expense 987 1,563
of which non-periodic tax expense/income 42 – 121
The actual taxes in Germany are calculated at a tax rate of
29.8 (29.8) percent. This represents the sum of the corpora-
tion income tax rate of 15.0 percent, the solidarity surcharge
of 5.5 percent and the average trade income tax rate for the
Group. The deferred taxes for companies in Germany are calcu-
lated at a rate of 29.8 (29.8) percent. The local income tax
rates applied to foreign companies range from 0 percent to
39 percent.
The effects arising as a result of tax-exempt foreign revenues
and tax benefits on research and development expenditure in
Hungary are reported under tax-exempt revenues in the tax
reconciliation accounts.
The impairment testing of deferred tax assets is generally
based on future taxable income in the context of a planning
period of five fiscal years. The result of the impairment test is
a deferred tax expense from the devaluation of deferred tax
claims of EUR 6 (222) million and a deferred tax income from
the appreciation of deferred tax assets of EUR 162 million
(none in the previous year).