Reebok 2015 Annual Report Download - page 195

CONSOLIDATED FINANCIAL STATEMENTS
Notes
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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, 2015
and December 31, 2014, respectively:
NUMBER OF CONSOLIDATED SUBSIDIARIES
2015 2014
January 1 154 161
First-time consolidated subsidiaries 2 3
Thereof: newly founded – 2
Thereof: purchased 2 1
Deconsolidated/divested subsidiaries (11) (1)
Intercompany mergers – (9)
December 31 145 154
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 SEE SHAREHOLDINGS OF ADIDASAG, HERZOGENAURACH, P. 250 . 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.
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SUMMARYOF
SIGNIFICANT
ACCOUNTING
POLICIES