Porsche 2012 Annual Report Download - page 168

Financials
Notes to the consolidated fi nancial statements
Intragroup expenses and income as well as receivables, liabilities and provisions are elimi-
nated. Intercompany profits from the sale of assets within the group which have not yet been
resold to third parties are eliminated. Deferred taxes are recognized for intragroup transactions
that affect income taxes. In addition, guarantees and warranties assumed by Porsche SE or one
of its consolidated subsidiaries in favor of other consolidated subsidiaries are eliminated.
In the event that control is lost and the parent company continues to hold shares in the pre-
vious subsidiary, such shares are measured at fair value on the date of loss of control. If the
shares are listed on the stock exchange, the fair value of the shares on the date when control is
lost is the product of the number of shares retained and the quoted market price of the shares
as of that date.
When deconsolidating a previous subsidiary, the difference between the consideration re-
ceived (upon disposal) or the fair value of the investment retained (upon partial sales or loss of
control for other reasons) and the net assets disposed of at the date when control is lost (includ-
ing any goodwill from acquisition accounting disposed of) and the carrying amount of the non-
controlling interests disposed of as of the date of loss of control is recognized in profit or loss.
Income and expenses recognized directly in the previous subsidiary’s equity for foreign currency
effects, securities marked to market, cash flow hedges and investments accounted for at equity
are also derecognized through profit or loss at the date of loss of control. Any revaluation re-
serve recognized in accordance with IFRS 3 (rev. 2004) is not derecognized through profit or loss
at the date of deconsolidation but reclassified to accumulated profits within equity.
Equity accounting
When investments accounted for at equity are acquired, they are recognized at cost as of the
date of initial recognition at equity. In the event of partial sale or loss of control of previously fully
consolidated subsidiaries for other reasons, they are recognized at fair value as of the date when
control is lost. The consolidation procedures generally apply by analogy to investments ac-
counted for at equity. Any goodwill that arises as part of the investment carrying amount is not
amortized or tested for impairment separately. Any negative goodwill is reassessed and recog-
nized through profit or loss at the date when the investment is initially accounted for at equity.
In subsequent periods, the carrying amount is changed to reflect the Porsche SE group’s
share of changes in net assets of the associate or joint venture. The group’s share in profit/loss
after tax and after non-controlling interests is recognized in the income statement within the item
“profit/loss from investments accounted for at equity”. Dilutive effects reducing the investment
carrying amount that arise from capital increases at the level of the investment without participa-
tion or with disproportionately low participation of the Porsche SE group and which do not lead
to any changes in the status of the investment as an associate or joint venture are also recorded
in this item when the dilutive effects arise.
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