Porsche 2010 Annual Report Download - page 139

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The consolidated financial statements and group management report prepared as of
31 December 2010 can be downloaded from the electronic German business register at
www.unternehmensregister.de.
Applying the exemption pursuant to Sec. 264 (3) HGB, the separate financial statements of
Porsche Erste Vermögensverwaltung GmbH and those of Porsche Zweite Vermögensverwaltung
GmbH are not published.
Changes in the consolidated group in the comparative period – Volkswagen group
The common goal of the basic agreement on the creation of an integrated automotive
group between Porsche and Volkswagen, which sets out the steps towards creating an integrated
automotive group, is a merger of Porsche SE with Volkswagen AG in the course of 2011 provided
the legal prerequisites are met at that time.
The basic agreement provides, among other things, for an amendment of the articles of
association of Volkswagen AG which prescribes that the State of Lower Saxony has a right to ap-
point two members of the supervisory board of Volkswagen AG, provided that it holds at least 15%
of the ordinary shares in Volkswagen AG. At the extraordinary general meeting of Volkswagen AG on
3 December 2009, the shareholders of Volkswagen AG approved the inclusion of this delegation
right in the articles of association. The amendment of the articles of association was entered in the
commercial register on 7 December 2010.
The resolution to include in Volkswagen AG’s articles of association the right of the State
of Lower Saxony to appoint two members of the supervisory board of Volkswagen AG prevents
Porsche SE from continuing to fully consolidate the Volkswagen group because there is a loss
of control according to IFRSs. As a result, the Volkswagen group was deconsolidated effective
3 December 2009 despite the fact that Porsche SE still holds 50.74% of the voting rights in
Volkswagen AG. Since this point in time, the investment in Volkswagen AG has been accounted
for at equity in the consolidated financial statements of Porsche SE.
When the reporting date of a subsidiary or associate is different from that of the parent
company, IAS 27.22 et seq. (rev. 2008) or IAS 28.24 et seq. (rev. 2008), respectively, allow the
use of financial statements of the subsidiary as of a different reporting date in the preparation of
consolidated financial statements if it is not practicable for the subsidiary or associate to prepare
separate interim financial statements as of the reporting date of the parent company. Due to the
volume of work at the Volkswagen group dedicated to preparing its half-yearly financial report for
2010, the data for the month of July 2010 could not be made available in the quality necessary for
external reporting. For this reason, the Volkswagen group was included in the consolidated financial
statements of Porsche SE as follows in the comparative period:
· For the period during which it was fully consolidated, the Volkswagen group was included using
figures for the period from 1 July 2009 to 3 December 2009.
· For the period during which it is accounted for at equity, the Volkswagen group was included
using figures for the period from the date of deconsolidation to 30 June 2010.