Reebok 2014 Annual Report Download - page 201

adidas Group
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2014 Annual Report
Consolidated Financial Statements
197
2014
Notes
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04.8
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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. Control exists when the adidas Group is exposed to, or has rights to,
variable returns from its involvement with the investee and has the ability to affect those returns through its power
over the investee.
The number of consolidated subsidiaries evolved as follows for the years ending December 31, 2014 and
December 31, 2013, respectively:
Number of consolidated subsidiaries
2014 2013
January 1 161 177
First-time consolidated subsidiaries 3 4
Thereof: newly founded 2 4
Thereof: purchased 1 –
Deconsolidated/divested subsidiaries (1) (7)
Intercompany mergers (9) (13)
December 31 154 161
The subsidiaries are held either directly by adidas AG or indirectly via the two holding companies adidas
Beteiligungsgesellschaft mbH in Germany or adidas International B.V. in the Netherlands.
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. 248. This schedule comprises information about
the name, domicile, currency and equity of all consolidated subsidiaries as well as the respective share held in
the capital of these subsidiaries. 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