Audi 2015 Annual Report Download - page 267

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ADDITIONAL DISCLOSURES
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EUR million Dec. 31, 2014 Level 1 Level 2 Level 3
Trade receivables 3,648 – 3,648 –
Other financial assets 4,120 – 4,120 –
Cash funds 11,391 3,689 7,702 –
Fair values of financial assets measured at amortized cost 19,160 3,689 15,470 –
Trade payables 5,824 – 5,824 –
Financial liabilities 1,637 – 1,637 –
Other financial liabilities 4,480 – 4,480 –
Fair values of financial liabilities measured at amortized cost 11,942 – 11,942 –
In the case of the financial instruments measured at amor-
tized cost, the fair value levels to be quoted basically corre-
spond to the criteria listed under Note 35.1. The fair value of
these financial instruments, such as receivables and liabilities,
is calculated by discounting using a market interest rate that
adequately reflects the risks and is based on matched maturi-
ties. Within non-current assets and liabilities, there were no
significant changes in the ratios between balance sheet value
and fair value. For reasons of materiality, the fair value for
current balance sheet items is equated with the balance sheet
value. In order to reconcile the tables above, equity instru-
ments reported at their carrying amount are assigned to
level 3 in the fair value hierarchy.
36 / MANAGEMENT OF FINANCIAL RISKS
36.1 / HEDGING GUIDELINES AND PRINCIPLES OF
FINANCIAL RISK MANAGEMENT
The principles and responsibilities involved in managing and
controlling risks associated with financial instruments are
stipulated by the Board of Management in accordance with the
Volkswagen Group guidelines and statutory parameters, and
are monitored by the Supervisory Board.
Operational risk management is carried out by the Group
Treasury, both at AUDI AG and at Volkswagen AG, Wolfsburg.
The Board of Management and Supervisory Board of AUDI AG
are regularly briefed on the current risk situation. Additionally,
the Volkswagen Executive Committee for Liquidity and Foreign
Currency is regularly updated on the current financial risks.
Further information can be found in the Management
Report on page 169.
36.2 / CREDIT AND DEFAULT RISKS
Credit and default risks from financial assets relate to a possi-
ble default by a contractual party and do not exceed the carry-
ing amounts in respect of the contractual party in question.
The risk from non-derivative financial instruments is covered
by value adjustments for loss of receivables. The contractual
parties for cash and capital investments, as well as currency
and commodity hedging instruments, have impeccable credit
standings. In addition to this, the risks are restricted by a limit
system that is based on the credit ratings of international
rating agencies and the equity base of the contractual parties.
The Group’s global business operations and the resulting diver-
sification meant that there were no major risk concentrations
during the past fiscal year.