Porsche 2009 Annual Report Download - page 202

202 Financials
By resolution of Porsche SE’s annual general meeting taken on 29 January 2010 to amend
the articles of association, the executive board was authorized until 28 January 2015, and subject
to approval of the supervisory board, to increase the company’s share capital, once or several
times, by a maximum amount of €87.5 million by issuing new bearer shares (ordinary shares) or
non-voting preference shares in return for contributions in cash or in kind. The corresponding chan-
ges in the articles of association were entered in the commercial register.
Capital reserves
The capital reserves contain contributions from premiums only and are unchanged since
the prior year.
Retained earnings
The retained earnings include the reserve for accumulated profits, reserves for available-
for-sale securities marked to market, reserves for cash flow hedges, the currency translation reserve,
reserves for investments accounted for at equity and the revaluation reserve.
The reserve for accumulated profits includes the profits of Porsche SE and its consolidated
subsidiaries earned in prior years and the reporting year and not yet distributed. These also include
the reclassified revaluation reserves from deconsolidated subsidiaries. This item also recognizes
tax effects from accounting for hybrid capital that is presented within non-controlling interests.
The reserve for available-for-sale securities marked to market contains changes in the fair
value of these securities.
The portion of the gain or loss on hedging instruments that is determined to be effective is
recognized in the reserve for cash flow hedges.
The currency translation reserve is used to record exchange differences arising from the
translation of the financial statements of foreign subsidiaries.
Expenses and income from investments accounted for at equity recognized directly in
equity are presented in the separate reserve for investments accounted for at equity.
Applying IFRS 3 (rev. 2004), the revaluation reserve contained the changes in hidden re-
serves and burdens incurred before initial consolidation in the business combination with the Volks-
wagen group that was achieved in stages and attributable to shares already acquired and held
before initial consolidation. Due to the deconsolidation, the revaluation reserve was reclassified to
the reserve for accumulated profits.