Porsche 2009 Annual Report Download - page 152

152 Financials
Leases
Whether an arrangement is, or contains a lease, is determined on the basis of the eco-
nomic substance of the arrangement at its inception date and requires an assessment whether the
fulfillment of the arrangement is dependent on the use of a specific asset or assets or the ar-
rangement conveys a right to use the asset. A reassessment after the inception of the lease is only
performed under the prerequisites set forth in IFRIC 4.
Operating leases
Leases under which substantially all the risks and rewards incidental to ownership of the
asset are not transferred to the lessee are classified as operating leases.
Assets leased to third parties under operating leases in which the Porsche SE group is les-
sor are presented in fixed assets. Most of the operating leases are for vehicles leased from the
group’s leasing companies. Leased vehicles are recognized at cost and depreciated on a straight-
line basis over the term of the lease to the lower of estimated residual value and fair value.
Where group companies are the lessee in operating leases, i.e. when not all significant
risks and rewards incidental to ownership are transferred, lease or rental payments are recognized
as an expense in the income statement.
Finance leases
A lease is classified as a finance lease if substantially all risks and rewards incidental to
ownership are transferred to the lessee.
Where group companies use items of property, plant and equipment as lessee under a fi-
nance lease, the individual assets and liabilities resulting from the lease are recognized at fair value
or, if lower, the present value of the minimum lease payments. Items of property, plant and equip-
ment are depreciated on a straight-line basis over the economic useful life or the term of the lease,
if shorter.
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
qualifying asset are recognized as part of the cost of that asset. Until the date of deconsolidation of
the Porsche Zwischenholding GmbH group and the Volkswagen group, borrowing costs of €0.8
million were capitalized in the fiscal year 2009/10 (prior year: €0.6 million). These borrowing costs
are attributable in full to discontinued operations. A borrowing cost rate of 3.9% (prior year: 4.4 %)
was assumed.