Porsche 2006 Annual Report Download - page 130

128
Principles
Basis of Presentation
Dr. Ing. h. c. F. Porsche Aktiengesellschaft *) (“Porsche AG”) is headquartered at Porscheplatz 1 in
70435 Stuttgart, Germany. The business objective of Porsche AG and its subsidiaries (“Porsche Group”)
is the production and sale of vehicles and engines of all kinds as well as of parts and components for
such and other technical products. The business objective also includes the performance of development
and design work, in particular in the field of vehicle and engine construction, consulting in the field of
development and production as well as all other activities that are technically or economically related,
including the exploitation of intellectual property rights. The Group also provides financial services
consisting of financing and leasing business for customers and dealers.
The consolidated financial statements of Porsche AG as of July 31, 2007 were prepared in accordance
with International Financial Reporting Standards (IFRS) as applicable in the EU. The standards published
by the International Accounting Standards Board (IASB), London, that are applicable as of the balance
sheet date as well as the interpretations issued by the International Financial Reporting Interpretations
Committee (IFRIC) that are valid for the fiscal year have been taken into account. The requirements of
the standards and interpretations applied were satisfied in full. The financial statements thus give a true
and fair view of the net assets, financial position and results of operations of the Porsche Group.
This version of the consolidated financial statements complies with the requirements of §315a German
Commercial Code (HGB). It forms the legal basis for group accounting according to international
accounting standards in Germany in conjunction with the Regulation (EC) No. 1606/2002 of the European
Parliament and of the Council of July 19, 2002 on the adoption of international accounting standards.
The financial statements of the subsidiaries are prepared as of the balance sheet date of the consolidated
financial statements, which is the balance sheet date of Porsche AG. For associates, the available in-
formation, i.e. the most recent audited consolidated financial statements and the published interim report
as of June 30 are used as a basis.
In the interest of clarity, individual items have been combined in the balance sheet and in the income
statement and disclosed separately and explained in the notes. To improve the quality of the information,
the ‘other financial result’ in the income statement has been broken down into financial expenses
and financial income. For the same reason, current income tax receivables were presented as a separate
item in the balance sheet. The informative value of the statement of changes in equity was also improved
by disclosing the reserve for the mark-to-market valuation of securities and the reserve for cash flow
hedges and the tax effects recorded in equity separately for the first time. The previous year figures have
been adjusted retrospectively in accordance with IAS 8.
Porsche’s fiscal year comprises the period from August 1 of a year until July 31of the following year.
The consolidated financial statements have been prepared in Euro. Unless stated otherwise, all figures
in the notes are presented in thousands of Euro (T€). The income statement has been prepared using
the total expenditure format.
The consolidated financial statements and Group management report prepared as of July 31, 2007
and the full list of equity investments is available via the electronic Company Register
at www.unternehmensregister.de.
*)The extraordinary stockholders’ meeting of the company on June 26, 2007 passed a resolution to spin off the operating
business to Porsche Vermögensverwaltung AG and to convert the company into a European Stock Corporation.
After entry of the spin-off in the commercial register, the Company will bear the name Porsche Automobil Holding AG,
from entry of the conversion in the commercial register then Porsche Automobil Holding SE.