Reebok 2013 Annual Report Download - page 200

adidas Group
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2013 Annual Report
Consolidated Financial Statements
196
2013
Notes
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04.8
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Principles of measurement
The following table includes an overview of selected measurement principles used in the preparation of the
consolidated financial statements.
Overview of selected measurement principles
Item Measurement principle
Assets
Cash and cash equivalents Nominal amount
Short-term financial assets At fair value through profit or loss
Accounts receivable Amortised cost
Inventories Lower of cost or net realisable value
Assets classified as held for sale Lower of carrying amount and fair value less costs to sell
Property, plant and equipment Amortised cost
Goodwill Impairment-only approach
Intangible assets (except goodwill):
With definite useful life Amortised cost
With indefinite useful life Impairment-only approach
Other financial assets (categories according to IAS 39):
At fair value through profit or loss At fair value through profit or loss
Held to maturity Amortised cost
Loans and receivables Amortised cost
Available-for-sale At fair value in other comprehensive income or at
amortised cost
Liabilities
Borrowings Amortised cost
Accounts payable Amortised cost
Other financial liabilities Amortised cost
Provisions:
Pensions Projected unit credit method
Other provisions Expected settlement amount
Accrued liabilities Amortised cost
Currency translation
Transactions in foreign currencies are initially recorded in the respective functional currency by applying the spot
exchange rate valid at the transaction date to the foreign currency amount.
In the individual financial statements of subsidiaries, monetary items denominated in non-functional
currencies of the subsidiaries are generally translated into the functional currency at closing exchange rates at
the balance sheet date. The resulting currency gains and losses are recorded directly in the income statement.
Assets and liabilities of the Group’s non-euro functional currency subsidiaries are translated into the
presentation currency, the euro, which is also the functional currency of adidas AG, at closing exchange rates
at the balance sheet date. For practical reasons, revenues and expenses are translated at average rates for
the period which approximate the exchange rates on the transaction dates. All cumulative differences from the
translation of equity of foreign subsidiaries resulting from changes in exchange rates are included in a separate
item within shareholders’ equity without affecting the income statement.