Porsche 2010 Annual Report Download - page 183

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181
Offsetting is not permitted during the term of the loan unless any mandatory or optional
grounds for insolvency have arisen at Porsche SE. Permission to offset the loan can be given when
it falls due for repayment. Volkswagen AG will assume the loan obligations of this company due to
Porsche SE in the event of insolvency of Porsche Zwischenholding GmbH provided it would have
been possible to offset the obligations against claims against Porsche SE had the company not
become insolvent.
Volkswagen AG has a corresponding obligation to settle a loan receivable due from Porsche
AG of €1,313 million (prior year: €1,313 million) in the case of insolvency of Porsche AG. The loan
agreement contains a premature repayment clause in the event of Porsche AG’s insolvency. Offset-
ting with the liability to Porsche AG amounting to €1,177 million is not permitted unless any manda-
tory or optional grounds for insolvency have arisen at Porsche AG.
The loan receivables from the Porsche Zwischenholding GmbH group thus exceed the cor-
responding financial liabilities by a total of €136 million (prior year: €136 million). There is neither a
guarantee by Volkswagen AG for the partial amount nor can it be offset.
Compensation of €2 million (prior year: €1 million) for the assumption of liability from finan-
cial guarantees has been recognized under sundry receivables and assets.
Collateral is generally accounted for when the contract is concluded and derecognized
when the contract expires.
Valuation allowances are recognized to take account of default risks. The maximum risk of
default corresponds to the net carrying amounts of the sundry receivables and assets. The current
other receivables and assets are mainly non-interest-bearing. The non-current other receivables and
assets contain derivative financial instruments totaling €459 million (prior year: €303 million).
Other receivables and assets excluding derivative financial instruments have a carrying
amount of €4,041 million (prior year: €4,022 million). This value comprises other financial receiv-
ables with a carrying amount of €4,027 million (prior year: €4,020 million), financial guarantees
with a carrying amount of €2 million (prior year: €1 million) and non-financial other receivables and
assets with a carrying amount of €12 million (prior year: €1 million). The non-financial other receiv-
ables and assets mainly contain accrued expenses in connection with the capital increase planned
for 2011.