Mercedes 2008 Annual Report Download - page 222

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Fair value. The amount for which an asset or liability could be
exchanged in an arm’s length transaction between knowledge-
able and willing parties who are independent of each other.
Goodwill. Goodwill represents the excess of the cost of an
acquired business over the fair values assigned to the separately
identifiable assets acquired and liabilities assumed.
IFRS - International Financial Reporting Standards. The IFRS
are a set of standards and interpretations for companies’ finan-
cial accounting and reporting developed by an independent private-
sector committee, the International Accounting Standards
Board (IASB).
Integrity Code. Our Integrity Code has been in use since 1999
and was revised and expanded in 2003. It sets out a binding frame-
work for the actions of all our employees worldwide.
Net assets. Net assets represent the capital employed by the
Group and the industrial divisions. The relevant capital basis for
Daimler Financial Services is equity capital (see page 55 ff).
Net operating profit. Net operating profit is the relevant para-
meter for measuring the Group’s operating performance after
taxes.
Rating. An assessment of a company’s creditworthiness issued
by rating agencies.
ROE – return on equity. The profitability of Daimler Financial
Services is measured by return on equity (ROE). ROE is defined
as a quotient of EBIT and shareholders’ equity.
Glossary
Code of Ethics. The Daimler Code of Ethics applies to the mem-
bers of the Board of Management and senior executives who
have a significant influence on planning and reporting in connec-
tion with the year-end and quarterly financial statements. The
regulations contained in the Code are designed to avoid miscon-
duct and to ensure ethical behavior and the correct disclosure
of information on the Group.
Compliance. By the term Compliance, we want to understand
the conformity of Daimler’s activities with all laws, rules & regula-
tions relevant for the business and the related internal policies &
guidelines, that the Daimler group is guided by or to which we
have voluntarily committed ourselves.
Consolidated Group. The consolidated Group is the total of all
those companies that are included in the consolidated financial
statements.
Corporate governance. The term corporate governance applies
to the proper management and monitoring of a company. The
structure of corporate governance at Daimler AG is determined
by Germany’s Stock Corporation Act, Codetermination Act and
capital-market legislation, as well as international capital-market
laws and stock-exchange listing regulations.
Cost of capital. The cost of capital is the product of the average
net assets and the cost-of-capital rate. The cost-of-capital rate is
derived from the investors’ required rate of return (see page 55).
CSR – corporate social responsibility. A collective term for the
social responsibility assumed by companies, including economi-
cal, ecological and social aspects.
EBIT. EBIT (earnings before interest and taxes) is the measure
of operational result before taxes (see page 53 ff).
Equity method. Accounting and valuation method for share-
holdings in associated companies and joint ventures, as well as
subsidiaries that are not fully consolidated.