Adidas 2000 Annual Report Download - page 72

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68
The number of consolidated companies evolved as follows for
the years ended December 31, 2000 and 1999, respectively:
2000 1999
January 1 96 98
Newly founded/
consolidated companies 3 3
Divestments/
exclusion from consolidation (3) (1)
Merged companies (1) (4)
December 31 95 96
Ten subsidiaries have not been included in the consolidated
financial statements in 2000 (1999: 11 subsidiaries), since they
have no or little active business and are insignificant to the
financial position, results of operations and cash flows. The
shares in these companies are accounted for at the lower of
cost or net realizable value.
A schedule of the shareholdings of adidas-Salomon AG is
shown in Attachment II to these notes. A collective listing of
these shareholdings in accordance with § 285 No. 11 and
§ 313 section 2 and 3 of the German Commercial Code will be
filed with the Commercial Register at the Local Court in Fürth
(Bavaria).
Consolidation of equity is made in compliance with the book
value method by offsetting the initial investments in subsidiaries
against the relevant equity portion at fair value held by the
parent company as at acquisition date.
All significant inter-company transactions and accounts are
eliminated in consolidation.
Currency Translation
Assets and liabilities of the Company’s non-DM functional
currency subsidiaries are translated into German marks at
closing exchange rates at the balance sheet date. Revenues
and expenses are translated at the average exchange rates
for the year. All cumulative differences from the translation
of equity of foreign subsidiaries resulting from changes in
exchange rates are included in a separate caption within
shareholders’ equity without affecting income.
A summary of exchange rates to the euro for major currencies
in which the Company operates is as follows:
Average rate for the year Spot rate at
ended December 31 December 31
g1 equals 2000 1999 2000 1999
USD 0.9246 1.0653 0.9305 1.0046
CAD 1.3718 1.5829 1.3965 1.4608
AUD 1.5897 1.6512 1.6770 1.5422
GBP 0.6097 0.6584 0.6241 0.6217
JPY 99.556 121.10 106.92 102.73
KRW 1,045.2 1,264.6 1,177.4 1,136.2
Effective January 1, 1999 the European Monetary Union com-
menced and the exchange rates between the participating cur-
rencies and the euro were irrevocably fixed. One euro equals
1.95583 German marks.
In the individual financial statements of Group companies,
monetary items denominated in a foreign currency are generally
measured at closing exchange rates at the balance sheet date.
The resulting currency gains and losses are recorded directly
in income.