Porsche 2009 Annual Report Download - page 143

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Business combinations are accounted for by applying the acquisition method pursuant to
both IFRS 3 (rev. 2008) and IFRS 3 (rev. 2004).
Business combinations and deconsolidations since 1 August 2009
The cost of a business combination is measured in accordance with IFRS 3 (rev. 2008) as
the aggregate of the consideration transferred at fair value as of the acquisition date and measured
at acquisition-date fair value and the non-controlling interests in the entity. The non-controlling inter-
ests can be measured either at fair value or at the proportionate share of the acquiree’s identifiable
net assets. Acquisition-related costs are expensed and therefore do not constitute a component of
cost.
If the business combination is achieved in stages, the acquisition-date fair value of the ac-
quirer’s previously held equity interest in the acquiree is remeasured to fair value as at the acquisi-
tion date and the gain or loss resulting from remeasurement recognized in profit or loss.
Where the cost of a business combination exceeds the fair value of identifiable assets ac-
quired net of liabilities assumed as of the acquisition date, the excess is recognized as goodwill. In
contrast, where the cost of a business combination is less than the fair value of identifiable assets
acquired net of liabilities assumed as of the acquisition date, the difference is recognized in the
income statement after reassessing the fair values.
Any difference arising upon acquisition of additional shares or sale of shares after initial
consolidation without loss of control in a subsidiary that has already been fully consolidated is rec-
ognized within equity.
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 consoli-
dated 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.