Accounting standards

EFFECTS OF NEW AND AMENDED IFRSS

Volkswagen AG has adopted all accounting pronouncements required to be applied starting in fiscal year 2011.

The option contained in the revised IAS 24 allows simplified reporting with respect to government-related entities and their subsidiaries. Volkswagen has not exercised this option. The revised IAS 24 also clarifies the definition of related parties and of reportable transactions. The reportable transactions of related parties were supplemented by other contractual obligations in this context. The prior-year figures were adjusted.

The amendments to IFRS 7 as part of the 2010 International Financial Reporting Standards Improvements Project required us to amend the disclosure requirements on the nature and extent of risks arising from financial instruments. Among other things, disclosures are now required on the financial effects of collateral and credit enhancements obtained. Additionally, the requirement to disclose the carrying amounts of financial instruments that would otherwise be past due whose terms have been renegotiated has been discontinued.

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

• IFRS 1: Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters
• IAS 32: Classification of Rights Issues
• 2010 Improvements to International Financial Reporting Standards – minor amendments to a large number of IFRS s ( IFRS 1, IFRS 3, IFRS 7, IAS 1, IAS 18, IAS 27, IAS 34, IFRIC 13) and consequential amendments
• IFRIC 14: Prepayments of a Minimum Funding Requirement
• IFRIC 19: Extinguishing Financial Liabilities with Equity Instruments

NEW AND AMENDED IFRSS NOT APPLIED

In its 2011 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 the fiscal year.

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Standard/Interpretation1				Issued by the IASB		Effective date2		Adopted by the EU1		Expected effects
1 Up to December 31, 2011. 2 Required to be applied for the first time by Volkswagen AG. 3 Effective date postponed from 2013 to 2015 by the Mandatory Effective Date project.
IFRS 1		Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters		Dec. 20, 2010		Jan. 1, 2012		No		None
IFRS 7		Disclosures – Transfers of Financial Assets		Oct. 7, 2010		Jan. 1, 2012		Yes		Enhanced disclosures on the transfer of financial instruments
IFRS 7		Disclosures – Offsetting Financial Assets and Financial Liabilities		Dec. 16, 2011		Jan. 1, 2013		No		Enhanced disclosures on offsetting of financial instruments
IFRS 9		Financial Instruments: Classification and Measurement		Nov. 12, 2009/ Oct. 28, 2010		Jan. 1, 20153		No		Change in the accounting treatment of fair value changes in financial instruments previously classified as available for sale
IFRS 10		Consolidated Financial Statements		May 12, 2011		Jan. 1, 2013		No		No material effects
IFRS 11		Joint Arrangements		May 12, 2011		Jan. 1, 2013		No		No material effects
IFRS 12		Disclosure of Interests in Other Entities		May 12, 2011		Jan. 1, 2013		No		Enhanced disclosures on interests in other entities
IFRS 13		Fair Value Measurement		May 12, 2011		Jan. 1, 2013		No		Modifications to and enhanced disclosures on fair value measurement
IAS 1		Presentation of Financial Statements – Presentation of Items of Other Comprehensive Income		June 16, 2011		Jan. 1, 2013		No		Change in the presentation of other comprehensive income
IAS 12		Income Taxes – Recovery of Underlying Assets		Dec. 20, 2010		Jan. 1, 2012		No		No material effects
IAS 19		Employee Benefits		June 16, 2011		Jan. 1, 2013		No		Change in accounting for and enhanced disclosures on employee benefits
IAS 27		Separate Financial Statements		May 12, 2011		Jan. 1, 2013		No		None
IAS 28		Investments in Associates and Joint Ventures		May 12, 2011		Jan. 1, 2013		No		None
IAS 32		Financial Instruments: Offsetting Finanial Assets and Financial Liabilities		Dec. 16, 2011		Jan. 1, 2014		No		No material effects
IFRIC 20		Stripping Costs in the Production Phase of a Surface Mine		Oct. 19, 2011		Jan. 1, 2013		No		None