Audi 2015 Annual Report Download - page 255

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE BALANCE SHEET
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The retirement benefit scheme within the Audi Group was
developed into a Contractual Trust Arrangement (CTA) in Ger-
many on January 1, 2001. The trust is a contribution-based
retirement benefit scheme with guarantees backed by
Volkswagen Pension Trust e.V., Wolfsburg. An annual cost of
providing benefits, based on remuneration and status, is con-
verted into a retirement benefits entitlement payable for life
(guarantee components) using annuity conversion factors. The
annuity conversion factors include a guaranteed rate of inter-
est. When the benefits are due, the retirement benefits com-
ponents acquired annually are added together. The cost of
providing benefits is invested on an ongoing basis in a dedicat-
ed fund that is managed on a fiduciary basis by Volkswagen
Pension Trust e.V. and invested in the capital market. If the
plan assets are higher than the present value of the obliga-
tions calculated using the guaranteed interest rate, a surplus
is allocated (surplus components).
The pension fund model is classed as a defined benefit plan
pursuant to IAS 19. The dedicated fund administered on a
fiduciary basis satisfies the requirements of IAS 19 as plan
assets and has therefore been offset against the obligations.
30.1 / AMOUNTS RECORDED IN THE BALANCE SHEET FOR DEFINED BENEFIT OBLIGATIONS
EUR million Dec. 31, 2015 Dec. 31, 2014
Present value of externally funded defined benefit obligations 1,724 1,662
Fair value of plan assets 1,291 1,156
Financing status (balance) 432 505
Present value of defined benefit obligations not externally funded 3,788 4,079
Due to the limit on a defined benefit asset
amount not capitalized under IAS 19 – –
Provisions for pensions recognized in the Balance Sheet 4,221 4,585
30.2 / PRESENT VALUE OF DEFINED BENEFIT OBLIGATIONS
EUR million 2015 2014
Present value as of Jan. 1 5,741 4,181
Service costs 150 131
Interest expense 130 151
Actuarial gains (–)/losses (+) following changes in demographic assumptions –1 +1
Actuarial gains (–)/losses (+) following changes in financial assumptions – 512 + 1,379
Actuarial gains (–)/losses (+) following experience-based adjustments + 122 0
Pension payments from company assets – 105 – 98
Pension payments from fund assets –9 –9
Past service costs (incl. plan curtailment) 0 1
Effects from transfers –5 4
Currency differences 2 0
Present value as of Dec. 31 5,512 5,741