Porsche 2010 Annual Report Download - page 167

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New accounting standards
a) The following new or revised standards and interpretations which were adopted
for first time in the short fiscal year had no material effect on the consolidated
financial statements
IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments”
IFRIC 19 contains guidance on accounting for debt for equity swaps where an entity rene-
gotiates the terms of a financial liability with the creditor with the result that it extinguishes the
liability fully or partially by issuing equity instruments to the creditor. IFRIC 19 clarifies that:
· The entity’s equity instruments are part of the consideration paid to extinguish the financial liability.
· The equity instruments issued are measured at fair value. If the fair value of the equity instru-
ments issued cannot be reliably measured, then the equity instruments are required to be meas-
ured to reflect the fair value of the financial liability extinguished.
· The difference between the carrying amount of the financial liability extinguished and the amount
initially recognized and measured for the equity instruments shall be recognized in profit or loss.
Annual Improvements Project II
The International Accounting Standards Board (IASB) published the “Improvements to IFRSs”
in April 2009. Most of the amendments are clarifications or corrections to existing IFRSs or
changes resulting from modifications already made to IFRSs.
IAS 32 “Financial Instruments: Presentation”
This amendment clarifies how to account for certain rights issues if the instruments issued
are not denominated in the functional currency of the issuer.
Amendments to IFRS 2 “Share-based Payment”
The amendment to IFRS 2 clarifies the accounting for share-based payments when a sup-
plier of goods or services is paid in cash and the obligation to this cash settlement is with another
group company (group cash-settled share-based payment transactions).