Porsche 2011 Annual Report Download - page 149

The business activities of the Porsche SE group are limited to holding and managing the investments in
Porsche Zwischenholding GmbH, Stuttgart, and Volkswagen AG, Wolfsburg. As separate assets the investments
do not meet the definition of operating segments, and segment reporting in accordance with IFRS 8 is
therefore not necessary.
The consolidated financial statements and group management report of Porsche SE were authorized
for issue to the supervisory board by the executive board by resolution dated 27 February 2012.
Consolidated group
The consolidated financial statements of Porsche SE include all companies in which Porsche SE has
the power to govern the financial and operating policy, either directly or indirectly, so as to obtain benefits from
its activities (control concept). Initial consolidation is performed as of the date on which the acquirer obtains
the possibility of control. A company is no longer consolidated upon loss of control. Subsidiaries in which
Porsche SE has the power to govern the financial and operating policy, either directly or indirectly, and that are
immaterial on a stand-alone basis and in total for a true and fair presentation of the net assets, financial
position and results of operations are accounted for at cost in the consolidated financial statements.
Material companies where Porsche SE is able, directly or indirectly, to significantly influence financial
and operating policy decisions (associates), or where Porsche SE shares joint control together with another
party (joint ventures), are accounted for at equity.
Joint ventures and associates also include companies in which the Porsche SE group holds the
majority of voting rights, but whose articles of association or partnership agreements stipulate that important
decisions may not be made without the approval of the other entity or where Porsche SE does not have control
as defined by IFRSs for other reasons.
The articles of association of Volkswagen AG prescribe that the State of Lower Saxony has a right to
appoint two members of the supervisory board, provided that it holds at least 15% of the ordinary shares in
Volkswagen AG. On account of the interest held by the State of Lower Saxony in Volkswagen AG, this
delegation right prevents Porsche SE from including the Volkswagen group in the consolidated financial
statements of Porsche SE by way of full consolidation because Porsche SE cannot determine the majority on
the supervisory board and it consequently does not have control as defined by IFRSs. Due to the significant
influence exercised by Porsche SE, however, its investment in Volkswagen AG is accounted for in the
consolidated financial statements of Porsche SE at equity.
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