Reebok 2013 Annual Report Download - page 199

adidas Group
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2013 Annual Report
Consolidated Financial Statements
195
2013
Notes
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04.8
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New standards and interpretations as well as amendments to existing standards and interpretations are usually
not applied by the Group before the effective date, with the exception of the following standard:
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IAS 36 Amendment – Recoverable Amount Disclosures for Non-Financial Assets (effective date: January 1,
2014): By applying this amendment early, the unintentionally introduced requirement to disclose the recoverable
amounts of cash-generating units irrespective of whether an impairment has actually occurred is waived.
The consolidated financial statements have in principle been prepared on the historical cost basis with the
exception of certain items in the statement of financial position 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).
The consolidated financial statements are prepared in accordance with the consolidation, accounting and
valuation principles described below.
Principles of consolidation
The consolidated financial statements include the financial statements of adidas AG and all 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 holding the majority of the voting rights and/or 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, 2013 and
December 31, 2012, respectively:
Number of consolidated subsidiaries
2013 2012
January 1 177 173
First-time consolidated companies: 4 13
Thereof: newly founded 4 4
Thereof: purchased — 9
Deconsolidated/divested companies (7) (9)
Intercompany mergers (13) —
December 31 161 177
A schedule of the shareholdings of adidas AG is shown in Attachment II to the consolidated financial
statements
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SEE SHAREHOLDINGS OF ADIDAS AG, HERZOGENAURACH, P. 240. Furthermore, the 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 subsidiaries 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.
02
Summary of significant
accounting policies