Porsche 2009 Annual Report Download - page 170

170 Financials
IAS 32 “Financial Instruments: Presentation”
This amendment clarifies how to account for certain rights issues if the instruments issued
are not denominated in the functional currency of the issuer. The rules are effective retrospectively
for the first time for reporting periods beginning on or after 1 February 2010. They are not ex-
pected to have any significant effect on the presentation of the group’s net assets, financial position
and results of operations or on its cash flows.
IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments”
IFRIC 19 contains guidance on accounting for debt for equity swaps where an entity rene-
gotiates the terms of a financial liability with the creditor with the result that it extinguishes the
liability fully or partially by issuing equity instruments to the creditor. IFRIC 19 clarifies that:
· The entity’s equity instruments are part of the consideration paid to extinguish the financial liability.
· The equity instruments issued are measured at fair value. If the fair value of the equity instru-
ments issued cannot be reliably measured then the equity instruments are measured to reflect the
fair value of the financial liability extinguished.
· The difference between the carrying amount of the financial liability extinguished and the initial
amount recognized for the equity instruments is recognized in profit or loss.
These new rules are effective retrospectively for the first time in fiscal years beginning on
or after 1 July 2010 and are not expected to have any significant effect on the presentation of the
group’s net assets, financial position and results of operations or its cash flows.
In addition, a number of other changes were presented in the consolidated financial state-
ments for the fiscal year 2008/09 which had still not been applied in the fiscal year 2009/10.
Early adoption of the changes before they become mandatory under the transitional provi-
sions of IASB is not planned.