Porsche 2010 Annual Report Download - page 152

Financials
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Accounting policies
The assets and liabilities of Porsche SE and the consolidated German and foreign subsidiar-
ies included are accounted for using uniform accounting policies applicable within the Porsche SE
group. The same accounting policies are also used at the level of the associates and joint ventures
of Porsche SE. Where necessary, adjustments are made. Generally, the comparative information for
SFY 2010 is based on the same accounting policies as for the fiscal year 2009/10.
Since the contributions to profit or loss made by the investments accounted for at equity
have a significant impact on the net assets and results of operations of the Porsche SE group, the
accounting policies applicable for the Porsche SE group only until deconsolidation of the Porsche
Zwischenholding GmbH group and the Volkswagen group and since then only applicable within the
Porsche Zwischenholding GmbH group and the Volkswagen group are also included in the explana-
tions below.
With the exception of certain items such as investments accounted for at equity, derivative
financial instruments and available-for-sale financial assets, the consolidated financial statements
are prepared using the historical cost principle. The measurement principles used are described
below in detail.
Intangible assets
Purchased intangible assets that are not acquired in a business combination are initially
recognized at cost in accordance with IAS 38. The cost of intangible assets acquired as part of a
business combination is their fair value as of the date of acquisition. Following initial recognition,
intangible assets are carried at cost less any accumulated amortization and any accumulated im-
pairment losses.
The useful lives of intangible assets are assessed as either finite or indefinite.
Intangible assets acquired separately with a finite useful life are amortized on a straight-line
basis over their useful life, taking any impairments into account. Useful lives generally range from
three to five years. Useful lives, residual values and methods of amortization are reviewed, and
adjusted if appropriate, at least at the end of the reporting year. If adjustments are made, these are
accounted for as changes in estimates.
Intangible assets with indefinite useful lives are not amortized. These include goodwill and
brand names from business combinations. The useful lives of brands are considered indefinite
based on the assessment that the inflow of economic benefits from these assets cannot be attrib-
uted to a specific period. Each asset or cash-generating unit is tested at least once a year for