Porsche 2009 Annual Report Download - page 157

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Non-derivative financial instruments
Financial instruments accounted for at fair value include financial instruments held for trad-
ing and financial assets classified as at fair value through profit or loss upon initial recognition.
Gains and losses from the subsequent measurement are recognized in profit or loss. Financial
instruments in the category held for trading include above all derivative financial instruments. The
financial instruments classified upon initial recognition as financial assets at fair value through profit
or loss represent index certificates. The classification in this category reflects the risk management
and investment strategy. No financial assets were classified as at fair value through profit or loss
upon initial recognition in the reporting period.
Financial instruments held to maturity are accounted for at amortized cost. Gains and los-
ses from the subsequent measurement are recognized in profit or loss.
Financial instruments available for sale are measured at fair value. Non-derivative financial
assets that are classified as available for sale and that cannot be allocated to any other category
are included in this category. Unrealized gains and losses from subsequent measurement are rec-
ognized in equity taking into account deferred taxes until the financial instruments are derecognized
or there is objective evidence of impairment. Investments presented as non-current financial assets
that are not accounted for at equity also constitute available-for-sale financial instruments and are
generally measured at fair value. If, however, no active market exists and fair value cannot be relia-
bly estimated, they are measured at cost.
Loans and receivables, held-to-maturity financial instruments and financial liabilities are
measured at amortized cost unless they are related to hedging instruments. In particular, these
include trade receivables and payables, receivables from financial services, other financial receiv-
ables, financial guarantees, financial liabilities and other financial liabilities. The financial receivables
and liabilities related to fair value hedge accounting are accounted for at fair value with respect to
the hedged risk.
With regard to financial guarantees, the Porsche SE group is required to make specified
payments if a debtor fails to make payment when due. Financial guarantees are presented on a net
basis. The compensation paid for assumption of the liability is not recognized before it is due. It is
presented as other receivables and assets or other liabilities. Liabilities are not recognized until the
utilization of a financial guarantee becomes probable. No liability had to be recognized in the cur-
rent fiscal year or in the comparative period.