CLASSES OF FINANCIAL INSTRUMENTS
Financial instruments are divided into the following classes at the Volkswagen Group:
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Financial instruments measured at fair value,
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Financial instruments measured at amortized cost and
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Financial instruments not falling within the scope of IFRS 7.
Financial instruments not falling within the scope of IFRS 7 include in particular investments in associates and joint ventures accounted for using the equity method.
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NET GAINS OR LOSSES FROM FINANCIAL INSTRUMENTS | ||||
|---|---|---|---|---|
|
€ million |
2008 |
2007 | ||
|
Financial instruments at fair value through profit or loss |
–4 |
342 | ||
|
Loans and receivables |
3,297 |
2,610 | ||
|
Available-for-sale financial assets |
–288 |
329 | ||
|
Financial liabilities measured at amortized cost |
–3,319 |
–3,268 | ||
|
|
–314 |
13 | ||
Net gains and losses from financial instruments are composed of interest, fair value measurement gains and losses on financial instruments, gains and losses on currency translation, impairment losses and disposal gains/losses. Interest also includes interest income and expenses from the Financial Services Division’s lending and leasing business. Financial instruments measured at 
fair value do not include any dividend income.
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TOTAL INTEREST INCOME AND EXPENSES OF FINANCIAL INSTRUMENTS | ||||
|---|---|---|---|---|
|
€ million |
2008 |
2007 | ||
|
Interest income |
4,239 |
3,354 | ||
|
Interest expenses |
3,462 |
3,386 | ||
|
|
777 |
–32 | ||
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IMPAIRMENT LOSSES ON FINANCIAL ASSETS BY CLASS |
| |||
|---|---|---|---|---|
|
€ million |
2008 |
2007 | ||
|
Measured at fair value |
266 |
– | ||
|
Measured at amortized cost |
1,156 |
818 | ||
|
|
1,422 |
818 | ||
Impairment losses relate to write-downs of financial assets, such as valuation allowances on receivables, securities and unconsolidated subsidiaries. Interest income on impaired financial assets amounted to €82 million in fiscal year 2008 (previous year: €83 million).
€9 million (previous year: €15 million) was recognized in fiscal year 2008 as an expense for fees and commissions that are not accounted for using the effective interest method and €3 million (previous year: €4 million) as income.
