Porsche 2009 Annual Report Download - page 165

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ing amounts of the assets and liabilities affected by estimates can be seen in the breakdowns of the
individual balance sheet items.
Key sources of judgment are the classification of subgroups as discontinued operations,
the classification of financial instruments, determining the starting point for the recognition of de-
velopment costs as an asset, the classification of leases as operating or finance leases, deciding
which indicators are indicative of an impairment of items of property, plant and equipment, associ-
ates and joint ventures as well as the recognition of provisions.
The judgments and estimates are based on assumptions that are derived from the current
information available. In particular, the circumstances given when preparing the consolidated finan-
cial statements and assumptions as to the expected future development of the global and industry
environment were used to estimate the company’s future business performance.
The estimates underlying accounting are associated with further uncertainties. This applies
above all to the forecast cash flows and discount rates. Other factors which may cause variances
from expectations are the development of share prices and business values, a change in the esti-
mate of likelihood of certain option conditions occurring, and the outcome of litigation. Factors
which may cause variances from judgments and estimates at the level of associates and joint ven-
tures include new information about the buying behavior on the sales markets and in response to
this changes in planning, dependency on suppliers, in particular exclusive suppliers, developments
in exchange rates, interest rates and the price of raw materials as well as environmental or other
legal provisions.
In such cases, the assumptions, and if necessary the carrying amounts of the assets and
liabilities concerned, are adjusted accordingly. Prior to the date of authorization of the financial
statements by the executive board for issue to the supervisory board, there were no indications that
the carrying amounts of the assets and liabilities presented in the consolidated balance sheet would
require any significant adjustment in the following reporting period. Judgments and estimates by
management included assumptions that are contained in the forecast report.