Porsche 2011 Annual Report Download - page 154

In the event that control is lost and the parent company continues to hold shares in the previous
subsidiary, such shares are measured at fair value on the date of loss of control. If the shares are listed on the
stock exchange, the fair value of the shares on the date when control is lost is the product of the number of
shares retained and the quoted market price of the shares as of that date.
When deconsolidating a previous subsidiary, the difference between the consideration received (upon
disposal) or the fair value of the investment retained (upon partial sales or loss of control for other reasons)
and the net assets disposed of at the date when control is lost (including any goodwill from acquisition
accounting disposed of) and the carrying amount of the non-controlling interests disposed of as of the date of
loss of control is recognized in profit or loss. Income and expenses recognized directly in the previous
subsidiary’s equity for foreign currency effects, securities marked to market, cash flow hedges and
investments accounted for at equity are also derecognized through profit or loss at the date of loss of control.
Any revaluation reserve recognized in accordance with IFRS 3 (rev. 2004) is not derecognized through profit or
loss at the date of deconsolidation but reclassified to accumulated profits within equity.
Equity accounting
When investments accounted for at equity are acquired, they are recognized at cost as of the date of
initial recognition at equity. In the event of partial sale or loss of control of previously fully consolidated
subsidiaries for other reasons, they are recognized at fair value as of the date when control is lost. The
consolidation procedures generally apply by analogy to investments accounted for at equity. Any goodwill that
arises as part of the investment carrying amount is not amortized or tested for impairment separately. Any
negative goodwill is reassessed and recognized through profit or loss at the date when the investment is
initially accounted for at equity.
In subsequent periods, the carrying amount is changed to reflect the Porsche SE group’s share of
changes in net assets of the associate or joint venture. The group’s share in profit/loss after tax and after non-
controlling interests is recognized in the income statement within the item “profit/loss from investments
accounted for at equity”. This item also includes dilutive effects reducing the investment carrying amount that
arise from capital increases at the level of the investment without participation or with disproportionately low
participation of the Porsche SE group and which do not lead to any changes in the status of the investment as
an associate or joint venture.
Changes in income and expenses recognized directly in equity at the level of the associate or joint
venture are recognized in a separate item within Porsche SE’s group equity. Distributions received lead to a
reduction of the investment’s carrying amount. Changes in non-controlling interests at the level of investments
accounted for at equity include the proportionate changes in the non-controlling interests within the respective
group of investments accounted for at equity attributable to Porsche SE which do not lead to a change in
control and are therefore recognized in other comprehensive income in their consolidated financial statements.
154 FINANCIALS