The credit and default risk arising from financial assets involves the risk of default by counterparties, and therefore comprises at a maximum the amount of the claims under carrying amounts receivable from them and the irrevocable credit commitments. The risk arising from non-derivative financial instruments is accounted for by recognizing bad debt losses. Cash and capital investments and derivatives are only entered into with prime-rated national and international counterparties. Risk is additionally limited by a limit system based on credit assessments by the international 
rating agencies and on the equity base of the counterparties concerned.
There were no material concentrations of risk in fiscal year 2009 due to the global allocation of the Group’s business activities and the resulting diversification.
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CREDIT AND DEFAULT RISK RELATING TO FINANCIAL ASSETS |
|
| ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
€ million |
Neither past due nor impaired |
Past due and not impaired |
Impaired |
Dec. 31, 2009 |
Neither past due nor impaired |
Past due and not impaired |
Impaired |
Dec. 31, 2008 | ||||||||
|
Measured at amortized cost |
|
|
|
|
|
|
|
| ||||||||
|
Financial services receivables |
56,223 |
3,760 |
2,488 |
62,471 |
55,838 |
2,587 |
1,923 |
60,348 | ||||||||
|
Trade receivables |
4,466 |
1,104 |
321 |
5,891 |
4,724 |
1,136 |
388 |
6,248 | ||||||||
|
Other receivables |
3,249 |
101 |
326 |
3,677 |
11,158 |
161 |
242 |
11,561 | ||||||||
|
|
63,938 |
4,966 |
3,135 |
72,039 |
71,720 |
3,884 |
2,553 |
78,157 | ||||||||
There are no overdue financial instruments measured at fair value in the Volkswagen Group. In fiscal year 2009, marketable securities measured at fair value with a cost of €20 million (previous year: €363 million) were individually impaired.
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CREDIT RATING OF THE GROSS CARRYING AMOUNTS OF FINANCIAL ASSETS |
| |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
€ million |
Risk class 1 |
Risk class 2 |
Dec. 31, 2009 |
Risk class 1 |
Risk class 2 |
Dec. 31, 2008 | ||||||
|
Measured at amortized cost |
|
|
|
|
|
| ||||||
|
Financial services receivables |
48,221 |
8,002 |
56,223 |
47,651 |
8,187 |
55,838 | ||||||
|
Trade receivables |
4,465 |
0 |
4,466 |
4,724 |
0 |
4,724 | ||||||
|
Other receivables |
3,240 |
10 |
3,249 |
11,153 |
5 |
11,158 | ||||||
|
Measured at fair value |
6,289 |
– |
6,289 |
7,395 |
– |
7,395 | ||||||
|
|
62,214 |
8,012 |
70,226 |
70,923 |
8,192 |
79,115 | ||||||
The Volkswagen Group performs a credit assessment of borrowers in all loan and lease agreements, using scoring systems for the high-volume business and rating systems for corporate customers and receivables from dealer financing. Receivables rated as good are contained in risk class 1. Receivables from customers whose credit rating is not good but have not yet defaulted are contained in risk class 2.
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MATURITY ANALYSIS OF THE GROSS CARRYING AMOUNTS |
| |||||||
|---|---|---|---|---|---|---|---|---|
|
|
past due by: |
Gross carrying amount | ||||||
|
€ million |
up to 30 days |
30 to 90 days |
more than |
Dec. 31, 2008 | ||||
|
Measured at amortized cost |
|
|
|
| ||||
|
Financial services receivables |
1,843 |
584 |
160 |
2,587 | ||||
|
Trade receivables |
668 |
278 |
190 |
1,136 | ||||
|
Other receivables |
74 |
29 |
58 |
161 | ||||
|
Measured at |
– |
– |
– |
– | ||||
|
|
2,585 |
891 |
408 |
3,884 | ||||
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|
|
| |||||||
|---|---|---|---|---|---|---|---|---|
|
|
past due by: |
Gross carrying amount | ||||||
|
€ million |
up to 30 days |
30 to 90 days |
more than |
Dec. 31, 2009 | ||||
|
Measured at amortized cost |
|
|
|
| ||||
|
Financial services receivables |
2,339 |
1,110 |
312 |
3,760 | ||||
|
Trade receivables |
645 |
329 |
130 |
1,104 | ||||
|
Other receivables |
54 |
16 |
31 |
101 | ||||
|
Measured at fair value |
– |
– |
– |
– | ||||
|
|
3,039 |
1,454 |
472 |
4,966 | ||||
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|
CARRYING AMOUNTS OF FINANCIAL INSTRUMENTS THAT WOULD |
| |||
|---|---|---|---|---|
|
€ million |
Dec. 31, 2009 |
Dec. 31, 2008 | ||
|
Measured at amortized cost |
|
| ||
|
Financial services receivables |
1,330 |
849 | ||
|
Trade receivables |
21 |
– | ||
|
Other receivables |
0 |
– | ||
|
Measured at fair value |
– |
– | ||
|
|
1,351 |
849 | ||
The collateral held by the Volkswagen Group relates mainly to financial services receivables and trade receivables. Collateral comprises vehicles and assets transferred as security, as well as guarantees and real property liens.
Collateral that was accepted in fiscal year 2009 for financial assets that are past due and not impaired and for financial assets that are individually impaired was recognized in the balance sheet in the amount of €276 million (previous year: €225 million). This mainly relates to vehicles.
