Porsche 2008 Annual Report Download - page 173

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Amendments to IFRS 7 “Financial Instruments: Disclosures”
The amendments provide for extended disclosures on the fair value measurement of financial
instruments and liquidity risks and concern, among other things, the introduction of a three-stage
fair value hierarchy. This differentiates fair values by the type of input parameters included in the
valuation and shows to what extent observable market data are available when determining the fair
value. In addition, the disclosures on the liquidity risk are to be improved by clarifying the scope of
the liabilities to be included in the reconciliation of opening and closing balances. The amendments
are applicable for reporting periods beginning on or after 1 January 2009.
Amendments to IAS 32 “Financial Instruments: Presentation”
The amendments relate to the classification of subscription rights and provide new rulings on
certain subscription rights as well as options and warrants in a foreign currency (diverging from
the functional currency) which are to be presented within equity in the balance sheet of the issuer
whose equity instruments relate to these rights, and no longer as derivative liabilities. The cur-
rency in which the exercise price is denominated is not relevant. The amendments are applicable
for the first time for reporting periods beginning on or after 1 February 2010.
Amendments to IFRIC 9 “Reassessment of Embedded Derivatives” and IAS 39 “Financial Instru-
ments: Recognition and Measurement”
An entity has to check whether a derivative embedded in a host contract can be separated if the
whole hybrid instrument has been reclassified from the category at fair value through profit and
loss in accordance with the amendments to IAS 39 from October 2008. If the derivative has to be
accounted for separately but its fair value cannot be reliably determined or an entity cannot per-
form the necessary assessment, the entire hybrid instrument has to remain in the category finan-
cial instruments at fair value through profit and loss. The amendments are supposed to be applied
for reporting periods ending on or after 30 June 2009. The endorsement of the amendment by the
European Union as part of the comitology procedure is still outstanding.
IFRIC 17 “Distributions of Non-Cash Assets to Owners”
IFRIC 17 clarifies that when an entity settles the dividend payable, it must recognize the difference,
if any, between the carrying amounts of the assets distributed and the fair value in profit or loss.
The obligations and any changes in the fair value of the asset concerned should be recognized in
equity. IFRIC 17 must be applied for reporting periods beginning on or after 1 July 2009.
IFRIC 18 “Transfers of Assets from Customers”
IFRIC 18 regulates agreements in which an entity receives an asset from a customer that the entity
must use either to connect the customer to a network or to provide the customer with ongoing
access to a supply of goods or services, or to do both. The interpretation addresses in particular
the recognition criteria of customer contributions, the timing and the amount of revenue recogni-
tion from such business transactions. IFRIC 18 must be applied for reporting periods beginning on
or after 1 July 2009.