You are here:

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