Reebok 2010 Annual Report Download - page 200

196 Consolidated Financial Statements Notes Notes to the Consolidated Statement of Financial Position
Notes to the Consolidated Statement of Financial PositionNotes to the Consolidated Statement of Financial Position
Cash and cash equivalents 04
Cash and cash equivalents consist of cash at banks and on hand as well as short-term bank
deposits. Short-term financial assets are only shown as cash and cash equivalents if they are
readily convertible to a known amount of cash and are subject to an insignificant risk of changes
in value.
Short-term financial assets 05
Short-term financial assets are classified at “fair value through profit or loss”. Changes in the fair
value are recognised in the income statement as they occur.
The majority of short-term financial assets are marketable securities relating to money
market funds and structured deposits.
Accounts receivable 06
Accounts receivable consist mainly of the currencies euro, US dollar and Japanese yen and are as
follows:
Accounts receivable
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Accounts receivable, gross 1,794 1,553
Less: accumulated allowances for doubtful accounts 127 124
Accounts receivable, net 1,667 1,429
Movement in allowances for doubtful accounts
€ in millions
2010 2009
Allowances at January 1 124 119
Additions 50 68
Reversals (31) (29)
Write-offs charged against the allowance accounts (23) (34)
Currency translation differences 7 0
Allowances at December 31 127 124
Accounts receivable past due but not impaired
€ in millions
past due
1 – 30 days past due 31 – 60 days past due 61 – 90 days past due 91 – 180 days past due > 180 days
Dec. 31, 2010 118 53 11 9 1
Dec. 31, 2009 115 57 10 6 5
With respect to accounts receivable as at the balance sheet date past due but not impaired, based
on credit history and current credit ratings, there are no indications that customers will not be
able to meet their obligations.
Further, no indications of default are recognisable for accounts receivable that are neither past
due nor impaired.
For further information see Risk and Opportunity Report, p. 158.
Other current financial assets 07
Other current financial assets consist of the following:
Other current financial assets
€ in millions
Dec. 31, 2010 Dec. 31, 2009
Interest rate derivatives — 0
Currency options 34 22
Forward contracts 30 20
Security deposits 69 60
Other financial assets 64 58
Other current financial assets 197 160
Information in relation to forward contracts as well as currency options and interest rate
derivatives is also included in these Notes see Note 28.