Porsche 2009 Annual Report Download - page 177

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The income from initial equity accounting results from the difference between the pro rata
revalued equity of the Volkswagen group taking into account the purchase price allocation that has
been performed again and the lower fair value of the shares held on the date of initial recognition at
equity. It is mainly attributable to the fact that the fundamental data for Volkswagen AG used in the
purchase price allocation are not fully reflected in the stock prices of Volkswagen AG. The expense
from the dilutive effect arising from the capital increase is due to the capital increase performed at
Volkswagen AG in March 2010, in which Porsche SE did not participate.
The profit or loss from investments accounted for at equity from continuing operations
consists of the profit or loss contribution from the investment in Porsche Zwischenholding GmbH of
€30 million and in Volkswagen AG of €6,762 million.
[8] Finance costs
Continuing Discontinued Reclassification Total
€ million operations operations acc. to IFRS 5
2009/10
Interest expenses for unwinding the discount on
pension provisions 0 298 – 298 0
Interest arising from unwinding the discount on
other provisions 0 111 – 111 0
Unwinding the discount on provisions 0 409 – 409 0
Other interest and similar expenses 800 529 – 529 800
800 938 – 938 800
2008/09
Interest expenses for unwinding the discount on
pension provisions 0 397 – 397 0
Interest arising from unwinding the discount on
other provisions 0 247 – 247 0
Unwinding the discount on provisions 0 644 – 644 0
Other interest and similar expenses 557 853 – 853 557
557 1,497 – 1,497 557
Other interest and similar expenses include the aggregate expenses from financing activi-
ties determined according to the effective interest method. The finance costs of continuing opera-
tions contain interest expenses of €758 million (prior year: €517 million) which result from financial
instruments which were not measured at fair value through profit or loss.
In the reporting period, other interest and similar expenses of continuing operations also
contain expenses for other fees of €3 million (prior year: €0 million) not included in the calculation
using the effective interest method.