Porsche 2010 Annual Report Download - page 161

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The options held by the Porsche SE group as of the reporting date generally are not traded
on a public market. In such cases, IAS 39.48 et seq. requires that a suitable valuation technique or
recent transaction be used for measurement purposes. Measurement was performed using gener-
ally accepted valuation techniques based on observable market data and historical values.
Offsetting of financial instruments
Financial assets and liabilities are presented net in the balance sheet only if the group has a
present contractual right to settle net and if it intends to settle net or by realizing the liability to-
gether with the asset.
Cash and cash equivalents
The cash and cash equivalents include checks, cash on hand and at banks. This item may
also include cash and cash equivalents that are not freely available for use by the Porsche SE group.
There was no longer any restricted cash as of the reporting date.
Deferred taxes
Deferred tax assets are generally recognized for deductible temporary differences between
the tax base and carrying amounts in the consolidated balance sheet (taking into account tempo-
rary differences arising from consolidation) as well as on unused tax losses and tax credits if it is
probable that they will be used. Deferred tax liabilities are generally recognized for all taxable tem-
porary differences between the tax base and the carrying amounts in the consolidated balance
sheet (temporary concept). Deferred tax liabilities for taxable temporary differences associated with
investments in subsidiaries, associates and interests in joint ventures are not recognized if the
timing of the reversal of the temporary differences can be controlled and it is probable that the
temporary differences will not reverse in the foreseeable future.
Valuation allowances are recognized on deferred tax assets that are unlikely to be realized
in a manageable period. A previously unrecognized deferred tax asset is reassessed and recog-
nized to the extent that it has become probable that future taxable profit will allow it to be recov-
ered.
Deferred taxes are measured on the basis of the tax rates that apply or that are expected
to apply based on the current legislation in the individual countries at the time of realization. De-
ferred taxes are not discounted.