Porsche 2011 Annual Report Download - page 167

Discontinued operations and non-current assets held for sale
Discontinued operations are components of an entity that have either been disposed of or are classified as held
for sale and which
· represent a separate major line of business or geographical area of operations,
· are part of a single coordinated plan to dispose of a separate major line of business or geographical area of
operations, or
· are a subsidiary acquired exclusively with a view to resale.
Discontinued operations are presented separately in accordance with IFRS 5. The income and
expenses associated with discontinued operations and any gain or loss arising from discontinuation are
disclosed separately in the income statement as profit from discontinued operations below the profit from
continuing operations. The prior-year information in the income statement is restated.
Under IFRS 5, non-current assets or groups of assets and liabilities are classified as held for sale if
their carrying amounts will be recovered principally through a sale transaction rather than through continuing
use. Such assets are carried at the lower of their carrying amount and fair value less costs to sell, and are
presented separately in current assets and liabilities in the balance sheet.
Hybrid capital
Provided the bond conditions of the hybrid capital issued satisfy the corresponding criteria, hybrid
capital is accounted for as an equity instrument of the group in accordance with IAS 32. If the hybrid capital is
classified as equity, the deductible interest is not presented as interest expenses but accounted for
corresponding to the accounting for dividends to the shareholders. Any transaction costs are deducted from
the hybrid capital, taking tax effects into account.
If classified as a debt instrument, hybrid capital is presented under bonds. Interest is included in other
interest and similar expenses.
Provisions for pensions and similar obligations
In accordance with IAS 19, the actuarial measurement of pension obligations arising from defined
benefit plans is based on the projected unit credit method. This method considers not only the pension
payments and the future claims known on the reporting date but also future anticipated increases in salaries
and pensions. The calculation of pension obligations is based on actuarial expert opinions taking into account
biometric assumptions. The interest rate used to discount provisions is determined on the basis of the return
on long-term high-quality corporate bonds at the reporting date.
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