Porsche 2012 Annual Report Download - page 176

Financials
Notes to the consolidated fi nancial statements
Where group companies act as the lessor under finance leases, receivables relating to the
leases are initially recognized at an amount equal to the net investment.
Borrowing costs
Borrowing costs that are attributable to the acquisition, construction or production of a qualify-
ing asset are recognized as part of the cost of that asset. The Porsche SE group did not capital-
ize any borrowing costs either in the 2012 reporting period or in the fiscal year 2011.
Impairment test
At the end of each reporting period, the group assesses whether there is any indication of im-
pairment. An impairment test is performed at least once a year for goodwill, capitalized costs for
products under development and intangible assets with an indefinite useful live. For intangible
assets with finite useful lives, property, plant and equipment as well as investments accounted
for at equity an impairment test is performed when there is an indication that the asset may be
impaired. With respect to the latter, please also refer to the section “Measurement at equity”
under “Consolidation principles” above.
The recoverable amount is determined in the course of impairment testing. The recoverable
amount is the higher of fair value less costs to sell and value in use. The fair value less costs to
sell is the amount obtainable from the sale of an asset in an arm’s length transaction between
knowledgeable, willing parties, less any costs to sell. Costs to sell are incremental costs incurred
to sell the asset or cash-generating unit. Value in use is determined using the discounted cash
flow method or capitalized earnings method on the basis of the estimated future cash flows
expected to arise from the continuing use of the asset and its disposal.
The recoverable amount is generally determined separately for each asset. If it is not possi-
ble to determine the recoverable amount for an individual asset because it does not generate
cash inflows that are largely independent of the cash inflows from other assets, it is determined
on the basis of a group of assets that constitutes a cash-generating unit.
If the carrying amount of an asset or cash-generating unit exceeds its recoverable amount,
an impairment loss is recognized to account for the difference. It is reviewed on an annual basis
whether the reasons for any previously recognized impairment loss still exist. If such reasons
longer exist, the impairments are reversed through profit or loss (with the exception of goodwill).
The amount reversed cannot exceed the amount that would have been determined as the carry-
ing amount, net of any depreciation and amortization, had no impairment loss been recognized
for the asset in prior years.
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