Porsche 2010 Annual Report Download - page 162

Financials
160
Deferred taxes referring to items recognized directly in equity are presented in equity. De-
ferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
Current taxes
Current income tax assets and liabilities for the current and prior periods are measured at
the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax
laws applied for measurement are those that are enacted or substantively enacted by the reporting
date. Adequate provisions were recognized for future probable tax liabilities, considering a large
number of factors such as interpretations, commentaries and jurisdiction on the pertinent tax legis-
lation as well as past experience.
Current tax relating to items recognized directly in equity is also recognized directly in equity.
Discontinued operations and non-current assets held for sale
Discontinued operations are components of an entity that have either been disposed of or are clas-
sified as held for sale and which
· represent a separate major line of business or geographical area of operations,
· are part of a single coordinated plan to dispose of a separate major line of business or geo-
graphical area of operations, or
· are a subsidiary acquired exclusively with a view to resale.
Discontinued operations are presented separately in accordance with IFRS 5. The income
and expenses arising prior to disposal and the gain or loss on sale are disclosed separately in the
income statement as profit from discontinued operations below the profit from continuing opera-
tions. The prior-year information in the income statement is restated accordingly.
Under IFRS 5, non-current assets or groups of assets and liabilities are classified as held
for sale if their carrying amounts will be recovered principally through a sale transaction rather than
through continuing use. Such assets are carried at the lower of their carrying amount and fair value
less costs to sell, and are presented separately in current assets and liabilities in the balance sheet.