Reebok 2007 Annual Report Download - page 161

157
ANNUAL REPORT 2007 --- adidas Group
NOTES adidas
AG
, a listed German stock cor
p
oration, and its sub-
s
idiaries desi
g
n, develop, produce and market – increasin
g
ly throu
g
h
own-retail activities – a broad ran
g
e of athletic and sports lifestyle
p
roducts. The
G
rou
p
’s Head
q
uarters are located at Adi-Dassler-
S
tr.
1,
9
1
0
7
4
Herzogenaurach,
G
ermany. The adidas
G
roup has divided its
operating activities by major brand into three segments: adidas, Reebok
and TaylorMade-adidas Golf. The business of Reebok International Ltd.
(
USA
)
and its subsidiaries is consolidated within the adidas
G
roup as
o
f
Februar
y
1
,
2006
,
and has a material im
p
act on the
G
rou
p
’s fi nancial
p
osition, results o
f
o
p
erations and cash
fl
ows.
adidas branded products include footwear, apparel and hardware, such
as ba
g
s and balls. The products are des
ig
ned and developed by ad
i
das
and are almost exclusivel
y
manu
f
actured b
y
subcontractors on behal
f
o
f
adidas.
R
eebok branded
p
roducts also include
f
ootwear, a
pp
arel and hard ware,
s
uch as bags and balls. The products are des
i
gned and developed by
R
eebok and are almost exclusivel
y
manu
f
actured b
y
subcontractors on
be
h
a
lf
o
f R
eebo
k.
T
aylorMade desi
g
ns, develops and assembles or manu
f
actures hi
g
h-
quality golf clubs, balls and accessories. adidas
G
olf branded products
include
f
ootwear, apparel and accessories. Max
fl
i is specialized in gol
f
balls and
g
olf accessories.
 1 GENERAL The accompanying consolidated fi nancial statements of adidas AG and its sub-
sidiaries (collectively the “adidas Group” or the “Group”) as at December 31, 2007, are prepared
in accordance with International Financial Reporting Standards (IFRS), as adopted by the
European Union, and the additional requirements of German commercial law pursuant to § 315a
section 1 HGB.
New standards, amendments to standards and interpretations applicable for the fi nancial year
ending December 31, 2007:
-- IAS 1 Amendment – Capital Disclosures (effective date: January 1, 2007): This amendment
required additional disclosures with respect to the Group’s capital management.
-- IFRS 7 Financial Instruments: Disclosures (effective date: January 1, 2007): This new standard
required extensive additional disclosures with respect to the Group’s fi nancial instruments.
-- IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyper-
infl ationary Economies (effective date: March 1, 2006): This interpretation had no impact on the
Group’s fi nancial statements.
-- IFRIC 8 Scope of IFRS 2 (effective date: May 1, 2006): This interpretation had no impact on the
Group’s fi nancial statements.
-- IFRIC 9 Reassessment of Embedded Derivatives (effective date: June 1, 2006): This inter-
pretation had no impact on the Group’s fi nancial statements.
-- IFRIC 10 Interim Financial Reporting and Impairment (effective date: November 1, 2006):
This interpretation had no impact on the Group’s fi nancial statements.
New standards and interpretations that will be effective for fi nancial years after December 31,
2007, and have not been applied in preparing these consolidated fi nancial statements:
-- IFRS 8 Operating Segments (effective date: January 1, 2009): The Group is currently analyzing
the potential effects of this new standard.
-- IFRIC 11 IFRS 2 – Group and Treasury Share Transactions (effective date: March 1, 2007):
This interpretation is not expected to have any impact on the Group’s fi nancial statements.
Entities shall apply the new standards, amendments to existing standards and interpretations
for annual periods beginning on or after the effective date.
New standards and interpretations, and amendments to existing standards and inter pretations
are usually not applied by the Group before the effective date.
The consolidated fi nancial statements have been prepared on the historical cost basis, with
the exception of certain items such as cash and cash equivalents, available-for-sale fi nancial
assets, derivative fi nancial instruments and receivables, which are measured at fair value.
The consolidated fi nancial statements are presented in euros and all values are rounded to
the nearest million.
05