Reebok 2009 Annual Report Download - page 175

CONSOLIDATED FINANCIAL STATEMENTS Notes 171
IFRIC 13 Customer Loyalty Programmes (effective date: January 1, 2009): This interpretation
had no material impact on the Group’s financial statements.
IFRIC 14/IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and
their Interaction (effective date: January 1, 2009): This interpretation had no impact on the Group’s
financial statements.
Improvements to IFRS (2008) (effective date: January 1, 2009): These improvements had no
material impact on the Group’s financial statements.
New standards and interpretations and amendments to existing standards and interpretations that
will be effective for financial years after December 31, 2009, and have not been applied in prepar-
ing these consolidated financial statements are:
IFRS 3 Business Combinations – Revised (effective date: July 1, 2009): This amendment will
have an impact on the Group’s financial statements in the event of business combinations.
IAS 27 Amendment – Consolidated and Separate Financial Statements (effective date: July
1, 2009): This amendment is not expected to have any material impact on the Group’s financial
statements.
IAS 32 Amendment – Financial Instruments: Presentation – Classification of Rights Issues
(effective date: February 1, 2010): This amendment is not expected to have any impact on the
Group’s financial statements.
IAS 39 Amendment – Financial Instruments: Recognition and Measurement – Eligible hedged
items (effective date: July 1, 2009): This amendment is not expected to have any material impact
on the Group’s financial statements.
IFRIC 12 Service Concession Arrangements (effective date: March 29, 2009): This interpretation
is not expected to have any impact on the Group’s financial statements.
IFRIC 15 Agreements for the Construction of Real Estate (effective date: January 1, 2010): This
interpretation is not expected to have any impact on the Group’s financial statements.
IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective date: June 30, 2009):
This interpretation is not expected to have any impact on the Group’s financial statements.
IFRIC 17 Distributions on Non-cash Assets to Owners (effective date: November 1, 2009): This
interpretation is not expected to have any impact on the Group’s financial statements.
IFRIC 18 Transfers of Assets from Customers (effective date: November 1, 2009): This interpre-
tation is not expected to have any impact on the Group’s financial statements.
Improvements to IFRS (2008) > IFRS 5 (effective date: July 1, 2009): These improvements are
not expected to have any material impact on the Group’s financial statements.
Entities shall apply the new standards and interpretations, and 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 interpreta-
tions are usually not applied by the Group before the effective date.
The consolidated financial statements have been prepared on the historical cost basis, with
the exception of certain items such as cash and cash equivalents, financial instruments valued at
fair value through profit or loss, available-for-sale financial assets, derivative financial instru-
ments, plan assets and receivables, which are measured at fair value.
The consolidated financial statements are presented in euros and all values are rounded to
the nearest million.
Summary of significant accounting policies 02
The consolidated financial statements are prepared in accordance with the consolidation, account-
ing and valuation principles described below.
Principles of consolidation Principles of consolidation
The consolidated financial statements include the accounts of adidas AG and its direct and indirect
subsidiaries, which are prepared in accordance with uniform accounting principles.
A company is considered a subsidiary if adidas AG directly or indirectly governs the financial
and operating policies of the respective enterprise.
The number of consolidated subsidiaries evolved as follows for the years ending December
31, 2009 and 2008, respectively:
N °-
02
NUMBER OF CONSOLIDATED COMPANIES
2009 2008
January 1 190 171
Newly founded/consolidated companies 5 10
Divestments/exclusion from consolidation (9) (3)
Merged companies (10) (2)
Purchased companies 1 14
December 31 177 190
A schedule of the shareholdings of adidas AG is shown in Attachment II to these Notes. Further,
a schedule of these shareholdings will be published in the electronic platform of the German
Federal Gazette.
The first-time consolidation of purchased companies had a material impact in
2008 see Note 4.
Within the scope of the first-time consolidation, all acquired assets and liabilities are
recognised in the balance sheet at fair value. A debit difference between the acquisition cost and
the proportionate fair value of assets and liabilities is shown as goodwill. A credit difference is
recorded in the income statement. Goodwill arises due to the expectation of strategic advantages
or relates to synergies. Upon the acquisition of minority interests, no fair value adjustments are
recognised. A debit difference between the cost for such an additional investment and the carrying
amount of the net assets at the acquisition date is shown as goodwill. A credit difference is
recorded in the income statement.
All intercompany transactions and balances, as well as any unrealised gains and losses
arising from intercompany transactions are eliminated in preparing the consolidated financial
statements.