Porsche 2004 Annual Report Download - page 110

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Principles
106
Basis of Presentation
Dr. Ing. h.c. F. Porsche Aktiengesellschaft (“Porsche AG”) is headquartered at Porscheplatz 1 in
70435 Stuttgart, Germany. The business objective of Porsche AG and its subsidiaries (“Porsche
Group”) is the production and sale of vehicles and engines of all kinds as well as of parts and
components for such and other technical products. The business objective also includes the per-
formance of development and design work, in particular in the field of vehicle and engine con-
struction, consulting in the field of development and production as well as all other activities that
are technically or economically related, including the exploitation of intellectual property rights.
The consolidated financial statements of Porsche AG were prepared in accordance with Internatio-
nal Financial Reporting Standards (IFRS) for the first time as of July 31, 2005. The standards pub-
lished by the International Accounting Standards Board (IASB), London, that are applicable as of
the balance sheet date as well as the interpretations issued by the International Financial Reporting
Interpretations Committee (IFRIC) that are valid for the fiscal year have been taken into account.
In addition, the option to early adopt standards and interpretations that had been issued by July 31,
2005 was applied in some cases. The requirements of the standards applied were satisfied in full.
The financial statements thus give a true and fair view of the net assets, financial position and
results of operations of the Porsche Group.
In application of the § 292a German Commercial Code (HGB) the consolidated financial statements
exempt the Company from the duty to prepare consolidated financial statements in accordance
with German accounting regulations. The financial statements have been prepared on the basis
of the interpretations of German Accounting Standard No 1 and are thus in compliance with the
7th EC Directive.
The financial statements of the subsidiaries are prepared as of the cut-off date of the consolidated
financial statements, which is the balance sheet date of Porsche AG. Where the balance sheet
date of a subsidiary deviates from the balance sheet date of the Group, interim financial statements
are prepared and audited.
In the interest of clarity, individual items have been combined in the balance sheet and in the in-
come statement and disclosed separately and explained in the notes. Porsche’s fiscal year com-
prises the period from August 1 of a year until July 31 of the following year. The consolidated
financial statements have been prepared in euro. Unless stated otherwise, all figures in the notes
are presented in thousands of euro (T€). The income statement has been prepared using the
total expenditure format.
The consolidated financial statements and group management report prepared as of July 31, 2005
have been filed with the commercial register of Stuttgart district court (HRB 5211).