Volkswagen : A German Car Manufacturer

1339 Words Dec 7th, 2015 6 Pages
Volkswagen is a German car manufacturer headquartered in Wolfsburg, Germany. Established in 1946, is now the second largest automaker in the world. They also have three in the top 10 list of best selling cars of all time to their credit. With many other European companies they had to switch to the International Financial Reporting Standards and in 2007 they prepared their consolidated financial statements in accordance to that. Since then they have followed the International Financial Standards implementing any of the new standards that may arise. Recently in 2014 Volkswagen adopted all accounting pronouncements required to be applied for that fiscal year. These new standards that were implemented are IFRS 10, 11 and 12. IFRS 10 talks about the basis of consolidation and the principles for including subsidiaries in the consolidated financial statements. Before IFRS 10 was implemented Volkswagen followed IAS 27, but since the switch they did not have to make any adjustments because of the parent to subsidiary relationships and other control relationships are almost entirely too voting rights to majority shareholders. Therefore there was no requirements to consolidate additional entities or deconsolidate any existing ones. IFRS 11 gives the definition of and also the accounting for joint arrangements in the consolidated financial statements. These joint arrangements are classified into joint ventures, and because all significant entities that are controlled by Volkswagen or…
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