Adidas 2000 Annual Report Download - page 70

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66
Notes to Consolidated Financial Statements (IAS)
adidas-Salomon AG, a listed German stock corporation, and
its subsidiaries design, develop, produce and market a broad
range of athletic and active lifestyle products under the follow-
ing brand names:
adidas branded products include footwear, apparel and hard-
ware, such as bags and balls. The products are designed and
developed by adidas and are almost exclusively manufactured
by sub-contractors on behalf of adidas.
Salomon branded products include ski and snowboard equip-
ment (skis, snowboards, boots and bindings) which are designed
and manufactured mainly in France and Italy. In addition to
these winter activity products the product range was expanded
into summer activities such as hiking boots and inline skates.
TaylorMade develops and assembles or manufactures high-
quality golf clubs, balls and equipment.
Mavic products include rims and wheels for mountain bikes
and road racing.
Other trademarks are erima and Bonfire, under which apparel
is marketed.
The Company’s headquarters are located in Herzogenaurach,
Germany.
1. General
The accompanying consolidated financial statements of adidas-
Salomon AG and its subsidiaries (collectively the “Company” or
“adidas-Salomon”) are prepared in accordance with accounting
principles generally accepted by the International Accounting
Standards Committee (International Accounting Standards –
“IAS”). The Company applied all International Accounting
Standards and Interpretations of the Standing Interpretations
Committee “SIC” effective as at December 31, 2000 and 1999,
respectively.
The following new standards were adopted effective January 1,
2000:
IAS 16 (revised 1998) “Property, Plant and Equipment”
IAS 22 (revised 1998) “Business Combinations”
IAS 36 “Impairment of Assets”
IAS 37 ”Provisions, Contingent Liabilities
and Contingent Assets”
IAS 38 “Intangible Assets”
All amounts are generally stated in thousands of euros. The
translation to euros occured through the initial translation of
the annual financial statements, which were generated in the
respective local currencies, to German marks (DM). The
consolidated financial statements were then translated into
euros on the basis of the official DM/euro rate of 1.95583.
New Accounting Standards
As of January 1, 2001 the Company will adopt IAS 39 “Financial
Instruments: Recognition and Measurement”. This standard
requires the presentation of all financial instruments at their fair
value in the balance sheet. At the same time, rules for hedge
accounting have also been tightened. Under previous account-
ing and disclosure rules, the gains and losses resulting from
hedging positions to protect anticipated future transactions
could be deferred until the due date of the hedged transactions.
Under IAS 39, hedge accounting for financial instruments which
cover anticipated future commercial transactions will be allowed
for hedges with forward contracts when certain conditions
(“hedge effectiveness test”) are met. IAS 39 permits limited
hedge accounting with currency options which are “in-the-
money”. To limit option premium payments, adidas-Salomon