Porsche 2008 Annual Report Download - page 156

To our shareholders The Company
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Based on the proportionate interest in the joint ventures, the following figures are attributable to
the Porsche group.
 Consolidation principles
The financial statements of the subsidiaries (with the exception of the companies belonging to the
Volkswagen subgroup) are prepared as of the balance sheet date of the consolidated financial
statements, which is the balance sheet date of Porsche SE.
Business combinations are accounted for by applying the purchase method pursuant to IFRS 3
(revised 2004) (“Business Combinations”).
Purchased assets and liabilities are measured at their fair value on the acquisition date. The
acquisition costs of the shares acquired are then offset against pro rata revalued equity of the
subsidiary.
In a business combination achieved in stages, each exchange transaction is accounted for sepa-
rately, i.e. for each transaction; the acquisition cost of the share purchase is compared with the
relevant share in the identifiable net assets determined at the acquisition date. Any remaining
positive difference from offsetting the acquisition cost against the identified assets and liabilities at
the date of acquisition is recognized as goodwill within intangible assets. If in a business combina-
tion achieved in stages shares of the acquired subsidiary held before initial consolidation, the
changes in hidden reserves and hidden liabilities attributable to these shares for the period be-
tween share purchase and initial consolidation are recorded in retained earnings in accordance
with IFRS 3 (rev. 2004).
To the extent that the cost of the business combination falls short of the identified assets, liabilities
and contingent liabilities, the identified assets, liabilities and contingent liabilities as well as the
acquisition costs are reassessed and recognized immediately in profit or loss in the year of acqui-
sition of the equity investment.
Any difference arising upon acquisition of additional shares or sale of shares after initial consolida-
tion without loss of control in a subsidiary that has already been fully consolidated is recognized
within equity.
When subsidiaries are sold, the difference between the selling price and the net assets plus cumu-
lative translation differences (including unamortized goodwill) is recognized in profit or loss when
control is lost.
€ million 2008/09
Non-current assets 8,384
Current assets 7,587
Non-current liabilities 5,932
Current liabilities 6,920
Income 5,101
Expenses 4,804