Accounting standards

Effects of new and amended IFRSs

Volkswagen AG has adopted all accounting pronouncements required to be applied starting in fiscal year 2015.

A number of amendments to International Financial Reporting Standards resulting from the Annual Improvements Project 2013 became effective on January 1, 2015. These relate to changes to IFRS 1, IFRS 3, IFRS 13 and IAS 40, and do not materially affect the Volkswagen Group’s net assets, financial position and results of operations.

IFRIC 21 has also been required to be applied since January 1, 2015. IFRIC 21 governs the accounting for levies that do not fall within the scope of IAS 12 “Income Taxes”. In particular, it provides guidance on when a liability has to be recognized for payment of a levy. This Interpretation also does not materially affect the Volkswagen Group’s net assets, financial position and results of operations.

New and amended IFRSs not applied

In its 2015 consolidated financial statements, Volkswagen AG did not apply the following accounting pronouncements that have already been adopted by the IASB, but were not yet required to be applied for the fiscal year.

 

Standard/Interpretation

 

Issued by the IASB

 

Effective date1

 

Adopted by the EU

 

Expected effects

 

 

 

 

 

 

 

 

 

 

 

1

Effective date from Volkswagen AG’s perspective.

2

The IASB decided on December 15, 2015 to defer the effective date indefinitely.

3

The European Commission decided on October 30, 2015 not to endorse IFRS 14. This means that IFRS 14 does not apply to the Volkswagen Group.

4

Deferred until January 1, 2018 (IASB decision of September 11, 2015).

5

Minor amendments to a number of IFRSs (IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16/38, IAS 24).

6

Minor amendments to a number of IFRSs (IFRS 5, IFRS 7, IAS 19, IAS 34).

IFRS 9

 

Financial Instruments

 

July 24, 2014

 

Jan. 1, 2018

 

No

 

Change in the recognition of fair value changes in financial instruments previously classified as available for sale, tendency to increase loss allowances from application of the expected loss model as opposed to the previously applied incurred loss model, additional designation options for hedge accounting, simplified effectiveness tests, increased disclosures

IFRS 10 and IAS 28

 

Consolidated Financial Statements and Investments in Associates and Joint Ventures: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

 

Sept. 11, 2014

 

Postponed2

 

 

None

IFRS 10, IFRS 12 and IAS 28

 

Consolidated Financial Statements and Investments in Associates and Joint Ventures: Investment Entities: Applying the Consolidation Exception

 

Dec. 18, 2014

 

Jan. 1, 2016

 

No

 

None

IFRS 11

 

Joint Arrangements: Accounting for Acquisitions of Interests in Joint Operations

 

May 6, 2014

 

Jan. 1, 2016

 

Yes

 

None

IFRS 14

 

Regulatory Deferral Accounts

 

Jan. 30, 2014

 

None3

 

No3

 

None

IFRS 15

 

Revenue from Contracts with Customers

 

May 28, 2014

 

Jan. 1, 20184

 

No

 

No material effects on revenue recognition, increased disclosures

IFRS 16

 

Leases

 

Jan. 13, 2016

 

Jan. 1, 2019

 

No

 

Lessees will no longer classify leases into finance and operating leases, but will in principle recognize all leases in their balance sheets as a right-of-use asset and a lease liability. No material changes in lessor accounting for leases compared with IAS 17. Increased disclosures

IAS 1

 

Presentation of Financial Statements

 

Dec. 18, 2014

 

Jan. 1, 2016

 

Yes

 

No material effects

IAS 7

 

Statement of Cash Flows: Disclosures

 

Jan. 29, 2016

 

Jan. 1, 2017

 

No

 

Preparation of a reconciliation for liabilities from financing activities

IAS 12

 

Income Taxes: Recognition of Deferred Tax Assets for Unrealized Losses

 

Jan. 19, 2016

 

Jan. 1, 2017

 

No

 

No material effects

IAS 16 and IAS 38

 

Clarification of Acceptable Methods of Depreciation and Amortization

 

May 12, 2014

 

Jan. 1, 2016

 

Yes

 

No material effects

IAS 16 and IAS 41

 

Agriculture: Bearer Plants

 

June 30, 2014

 

Jan. 1, 2016

 

Yes

 

None

IAS 19

 

Employee Benefits: Defined Benefit Plans – Employee Contributions

 

Nov. 21, 2013

 

Jan. 1, 2016

 

Yes

 

No material effects

IAS 27

 

Separate Financial Statements: Equity Method

 

Aug. 12, 2014

 

Jan. 1, 2016

 

Yes

 

None

 

 

Improvements to IFRSs 20125

 

Dec. 12, 2013

 

Jan. 1, 2016

 

Yes

 

Primarily increased segment reporting disclosures

 

 

Improvements to IFRSs 20146

 

Sept. 25, 2014

 

Jan. 1, 2016

 

Yes

 

Increased disclosures in accordance with IFRS 7