Porsche 2011 Annual Report Download - page 97

The group accounting manual of Porsche SE
and formal instructions ensure uniform recognition
and measurement based on the accounting policies
applicable at Porsche SE, also after deconsolidation
of the Porsche Zwischenholding GmbH group and the
Volkswagen group in the fiscal year 2009/10. The
components of the formal reporting packages re-
quired to be prepared for Porsche SE are set out in
detail and updated regularly. The reporting dates that
are relevant for the reporting units are set out in a
reporting calendar.
In the course of preparation of the consoli-
dated financial statements, the reporting packages
are analyzed in detail and tested for plausibility. In
addition, interviews are held with representatives of
the significant investments and the subsidiaries of
Porsche SE as part of the financial statements clos-
ing process.
The data reports are processed in a consoli-
dation system, which is based on standard software
and to which access and rights are restricted by the
existing authorization and access rules. The clear
delineation of areas of responsibility and the applica-
tion of the dual control principle during preparation of
the financial statements is ensured by means of
unambiguous rules.
Testing for reasonableness, the clear de-
lineation of areas of responsibility and the application
of the dual control principle are control mechanisms
applied during the preparation of the financial state-
ments of Porsche SE. At Porsche SE, provisions as
well as accruals and deferrals are set up, and the
recoverability of the company’s equity investments
included in the balance sheet are checked in coop-
eration with the departments. These figures are
accounted for only after internal approval. The ac-
counting processes implemented at Porsche SE
ensure that matters arising from agreements that are
relevant in terms of accounting and subject to dis-
closure requirements are identified in full and pre-
sented appropriately in the financial statements.
There are authorization and access rules for the IT
systems of relevance for the financial reporting
process.
The internal control system relevant for the
financial reporting process and the guidelines for
Porsche SE and its subsidiaries were implemented
with the involvement of Porsche SE’s internal audit
function. The control system and the guidelines are
subject to appropriateness reviews and are updated
on an ongoing basis.
Risk management and early risk warning
According to Sec. 91 (2) German Stock Cor-
poration Act (AktG), Porsche SE is required to oper-
ate a risk management and early warning system
which allows the company to identify any risks to the
ability of the company to continue as a going con-
cern at an early stage. The risk management system
of the Porsche SE group was set up to identify at an
early stage any potential risks to the ability of the
group to continue as a going concern as well as any
risks that could significantly and negatively impact
the net assets, financial position and results of op-
erations of the group and to avoid these by means of
suitable countermeasures that allow the company to
rule out any risks to its ability to continue as a going
concern.
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