Reebok 2010 Annual Report Download - page 193

Consolidated Financial Statements Notes 189
– IFRIC 16 Hedges of a Net Investment in a Foreign Operation (effective date: July 1, 2009): This
interpretation had no impact on the Group’s financial statements.
– IFRIC 17 Distributions on Non-cash Assets to Owners (effective date: November 1, 2009): This
interpretation had no impact on the Group’s financial statements.
– IFRIC 18 Transfers of Assets from Customers (effective date: November 1, 2009): This
interpretation had no impact on the Group’s financial statements.
– Improvements to IFRSs (2008) > IFRS 5 (effective date: July 1, 2009): These improvements had
no material impact on the Group’s financial statements.
– Improvements to IFRSs (2009) (effective date: January 1, 2010): 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 beginning after January 1, 2010, and which have not been
applied in preparing these consolidated financial statements are:
– IAS 24 Related Party Disclosures – Revised (effective date: January 1, 2011): This amendment is
not expected to have any 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.
– IFRIC 14 Amendment – Prepayments of a Minimum Funding Requirement (effective date:
January 1, 2011): This amendment is not expected to have any impact on the Group’s financial
statements.
– IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (effective date: July 1,
2010): This interpretation is not expected to have any 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 interpretations
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 financial instruments valued at fair value through profit or loss,
available-for-sale financial assets, derivative financial instruments, 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 (€ in millions).
Summary of significant accounting policies 02
The consolidated financial statements are prepared in accordance with the consolidation,
accounting and valuation principles described below.
Principles of consolidation Principles of consolidation
The consolidated financial statements include the financial statements 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 it is controlled by adidas AG, e.g. by directly or
indirectly governing the financial and operating policies of the respective enterprise.
The number of consolidated subsidiaries evolved as follows for the years ending December 31,
2010 and 2009, respectively:
Number of consolidated subsidiaries
2010 2009
January 1 177 190
First-time consolidated companies: 1 6
Thereof newly founded 1 5
Thereof purchased — 1
Deconsolidated/divested companies (1) (9)
Merged companies (8) (10)
December 31 169 177
A schedule of the shareholdings of adidas AG is shown in Attachment II to these Notes. Further,
a schedule of the shareholdings of adidas AG will be published on the electronic platform of the
German Federal Gazette.
Within the scope of the first-time consolidation, all acquired assets and liabilities are
recognised in the statement of financial position at fair value at the acquisition date. A debit
difference between the acquisition cost and the proportionate fair value of assets, liabilities and
contingent liabilities is shown as goodwill. A credit difference is recorded in the income statement.
Acquisitions of additional investments in Group companies which are already controlled are
recorded as equity transactions. Therefore, neither fair value adjustments of assets and liabilities
nor gains or losses are recognised. Any difference between the cost for such an additional
investment and the carrying amount of the net assets at the acquisition date is directly recorded in
shareholders’ equity.
The financial effects of intercompany transactions, as well as any unrealised gains and
losses arising from intercompany business relations are eliminated in preparing the consolidated
financial statements.