Porsche 2011 Annual Report Download - page 159

Depreciation, which is generally charged on a straight-line basis, reflects the pattern of the assets’
expected utility to the company. Higher depreciation rates are applied for some equipment used in shift
operations.
Depreciation is based on the following useful lives:
Residual values, depreciation methods and useful lives are reviewed, and adjusted prospectively as
changes in estimates if appropriate, at each reporting date.
Property, plant and equipment are either derecognized upon disposal or when no future economic
benefits are expected from the continued use or sale of a recognized asset. The gain or loss arising from the
derecognition of the asset, determined as the difference between net disposal proceeds and the asset’s
carrying amount as of the date of disposal, is included in profit or loss for the period when the asset is
derecognized.
Leases
Whether an arrangement is, or contains a lease, is determined on the basis of the economic substance
of the arrangement at its inception date and requires an assessment whether the fulfillment of the arrangement
is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset. A
reassessment after the inception of the lease is only performed under the prerequisites set forth in IFRIC 4.
Operating leases
Leases under which substantially all the risks and rewards incidental to ownership of the asset are not
transferred to the lessee are classified as operating leases.
Most of the assets leased to third parties under operating leases are vehicles leased from the group’s
leasing companies and are presented in non-current assets. Leased vehicles are recognized at cost and
depreciated on a straight-line basis over the term of the lease to the lower of estimated residual value and fair
value.
Years
Buildings 25 to 50
Site improvements 9 to 20
Technical equipment and machinery 6 to 20
Other equipment, furniture and fixtures (including special tools) 3 to 15
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