Porsche 2012 Annual Report Download - page 183

Discontinued operations and non-current assets held for sale
Discontinued operations are components of an entity that have either been disposed of or are
classified as held for sale and which
· represent a separate major line of business or geographical area of operations,
· are part of a single coordinated plan to dispose of a separate major line of business or geo-
graphical area of operations, or
· are a subsidiary acquired exclusively with a view to resale.
Discontinued operations are presented separately in accordance with IFRS 5. The income
and expenses associated with discontinued operations and any gain or loss arising from discon-
tinuation are disclosed separately in the income statement as profit from discontinued opera-
tions below the profit from continuing operations. The prior-year information in the income
statement is restated accordingly.
Under IFRS 5, non-current assets or groups of assets and liabilities are classified as held for
sale if their carrying amounts will be recovered principally through a sale transaction rather than
through continuing use. Such assets are carried at the lower of their carrying amount and fair
value less costs to sell, and are presented separately in current assets and liabilities in the bal-
ance sheet.
Hybrid capital
Provided the bond conditions of the hybrid capital issued satisfy the criteria, hybrid capital is
accounted for as an equity instrument of the group in accordance with IAS 32. If the hybrid
capital is classified as equity, the deductible interest is not presented as interest expenses but
accounted for corresponding to the accounting for dividends to the shareholders. Any transac-
tion costs are deducted from the hybrid capital, taking tax effects into account.
If classified as a debt instrument, hybrid capital is presented under bonds. Interest is includ-
ed in other interest and similar expenses.
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