Accounting standards

Effects of new and amended IFRSs

Volkswagen AG has adopted all accounting pronouncements required to be applied starting in fiscal year 2009.

The amended IFRS 7, Financial Instruments: Disclosures, broadens the disclosures on measuring the fair value of financial instruments and on the liquidity risk arising from financial liabilities.

The new IFRS 8, Operating Segments, changes the presentation of segment reporting. In line with the management approach, Volkswagen presents three reportable segments. In addition, certain activities that are not internally allocated to the operating segments, as well as consolidation adjustments, are presented in a reconciliation.

The revision of IAS 1, Presentation of Financial Statements, changed the presentation format of the primary financial statements. The names of certain financial statements were also amended.

IAS 7, which was amended under the annual Improvements Project, now allows cash flows from changes in leasing and rental assets to be classified as cash flows from operating activities. Consequently, the presentation of cash flows from changes in financial services receivables has also been adjusted to ensure uniform reporting of finance and leasing transactions in the consolidated cash flow statement. Apart from this, there were no other significant changes resulting from the Improvements Project 2008.

The revised IAS 23, Borrowing Costs, requires borrowing costs that are directly attributable to the acquisition, production, or construction of qualifying assets on or after January 1, 2009 to be capitalized. A qualifying asset is an asset that necessarily takes at least a year to get ready for its intended use or sale. The revised IAS 23 does not materially affect the presentation of the Volkswagen Group’s net assets, financial position and results of operations.

In addition, the following standards and interpretations were required to be applied for the first time in fiscal year 2009, but did not have any material effects on the presentation of the Group’s consolidated financial statements.

IFRS 1/IAS 27: Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associates

IFRS 2: Share-based Payment – Vesting Conditions and Cancellations

IFRS 4: Insurance Contracts

IFRS 7/IAS 39: Reclassification of Financial Assets – Effective Date

IAS 1/IAS 32: Puttable Financial Instruments and Obligations Arising on Liquidation

IFRIC 9/IAS 39: Reassessment of Embedded Derivatives

IFRIC 11/IFRS 2: Group and Treasury Share Transactions

IFRIC 13: Customer Loyalty Programmes

IFRIC 14/IAS 19: The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction

New and amended IFRSs not applied

In its 2009 consolidated financial statements, Volkswagen AG did not apply the following accounting standards or interpretations that have already been adopted by the IASB but were not required to be applied for fiscal year 2009.

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Standard/Interpretation1				Issued by the IASB		Effective date2		Adopted by the EU1		Expected effects
1 In the period up to December 31, 2009. 2 Required to be applied for the first time by Volkswagen AG. 3 Minor amendments to a large number of standards and interpretations (IFRS 2, IFRS 5, IFRS 8, IAS 1, IAS 7, IAS 17, IAS 18, IAS 36, IAS 38, IAS 39, IFRIC 9, IFRIC 16) and resulting changes.
IFRS 1		First-time Adoption of IFRSs		Nov. 25, 2008		Jan. 1, 2010		Yes		None
IFRS 1		Additional Exemptions for First-time Adopters		July 23, 2009		Jan. 1, 2010		No		None
IFRS 1/ IFRS 5		Improvements 2008		May 22, 2008		Jan. 1, 2010		Yes		None
IFRS 2		Group Cash-settled Share-based Payment Transactions		June 18, 2009		Jan. 1, 2010		No		None
IFRS 3/ IAS 27		Business Combinations/Consolidated Financial Statements		Jan. 10, 2008		Jan. 1, 2010		Yes		Change in the presentation of business combinations
IFRS 9		Financial Instruments: Classification and Measurement		Nov. 12, 2009		Jan. 1, 2013		No		Change in the accounting treatment of fair value changes in financial instruments previously classified as available for sale
IAS 24		Related Party Disclosures		Nov. 4, 2009		Jan. 1, 2011		No		Simplification of reporting of related party transactions with state-controlled entities and their subsidiaries
IAS 32		Classification of Rights Issues		Oct. 8, 2009		Jan. 1, 2011		Yes		None
IAS 39		Exposures Qualifying for Hedge Accounting		July 31, 2008		Jan. 1, 2010		No		None
		Improvements 20093		Apr. 16, 2009		Jan. 1, 2010		No		No material effects
IFRIC 12		Service Concession Arrangements		Nov. 30, 2006		Jan. 1, 2010		Yes		None
IFRIC 14		IAS 19 – The Limit on a Defined Benefit Asset – Amendments		Nov. 26, 2009		Jan. 1, 2011		No		None
IFRIC 15		Agreements for the Construction of Real Estate		July 3, 2008		Jan. 1, 2010		Yes		None
IFRIC 16		Hedges of a Net Investment in a Foreign Operation		July 3, 2008		Jan. 1, 2010		Yes		None
IFRIC 17		Distributions of Non-cash Assets to Owners		Nov. 27, 2008		Jan. 1, 2010		Yes		None
IFRIC 18		Transfers of Assets from Customers		Jan. 29, 2009		Jan. 1, 2010		Yes		None
IFRIC 19		Extinguishing Financial Liabilities with Equity Instruments		Nov. 26, 2009		Jan. 1, 2010		No		None