Porsche 2009 Annual Report Download - page 161

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Discontinued operations and non-current assets held for sale
Discontinued operations are components of an entity that have either been disposed of or are clas-
sified as held for sale and which
· represent a separate major line of business or geographical area of operations,
· are part of a single coordinated plan to dispose of a separate major line of business or geo-
graphical area of operations, or
· are a subsidiary acquired exclusively with a view to resale.
Under IFRS 5, discontinued operations which are disposed of from the consolidated group
are presented separately. The income and expenses arising prior to disposal and the gain or loss
on sale are disclosed separately in the income statement as profit from discontinued operations
below the profit from continuing operations. The comparative information in the income statement is
restated accordingly. Under IFRS 5, non-current assets or groups of assets and liabilities are classi-
fied as held for sale if their carrying amounts will be recovered principally through a sale transaction
rather than through continuing use. Such assets are carried at the lower of their carrying amount
and fair value less costs to sell, and are presented separately in current assets and liabilities in the
balance sheet.
Hybrid capital
Provided the bond conditions of the hybrid capital issued satisfy the criteria, hybrid capital
is accounted for as an equity instrument of the group in accordance with IAS 32. If the hybrid capi-
tal is classified as equity, the deductible interest is not presented as interest expenses but ac-
counted for corresponding to the accounting for dividends to the shareholders. Any transaction
costs are deducted from the hybrid capital, taking tax effects into account.
If classified as a debt instrument, hybrid capital is presented under bonds. Interest is in-
cluded in other interest and similar expenses.