Adidas 1998 Annual Report Download - page 43

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Notes to Consolidated Financial Statements 41
adidas-Salomon AG AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
adidas-Salomon AG, a listed German stock corporation, and its subsidiaries design,
develop, produce and market a broad range of athletic and active lifestyle products under
the following brand names:
adidas branded products include footwear, apparel and hardware, such as bags
and balls. The products are designed and developed by adidas and are almost
exclusively manufactured by subcontractors on behalf of adidas.
SALOMON branded products include ski equipment (skis, boots and bindings) and
are designed and manufactured in France and Italy. In recent years the business was
expanded into summer activities such as hiking boots and in-line skates.
TAYLOR MADE develops and assembles or manufactures high-quality golf clubs
and golf equipment.
MAVIC products include rims and wheels for mountain bikes and road racing.
Other trademarks are erima and BONFIRE, under which apparel is marketed.
The Company’s headquarters are located in Herzogenaurach, Federal Republic
of Germany.
1. GENERAL The accompanying consolidated financial statements of adidas-Salomon AG and its
subsidiaries (collectively the “Company”) are prepared in accordance with accounting
principles generally accepted by the International Accounting Standards Committee
(“International Accounting Standards” – “IAS”). The Company applied all International
Accounting Standards effective as of December 31, 1998.
NEW ACCOUNTING STANDARDS:
Several new International Accounting Standards were issued and existing International
Accounting Standards were revised, which are required to be adopted in 1999 and 2000.
The Company is currently analyzing the impacts of these standards and does not expect
any standard to have a material impact on the Company’s financial position, results of
operations or cash flows and its reporting thereon.
GERMAN STATUTORY REPORTING:
Due to the exemption in § 292a of the German Commercial Code (HGB), which was
introduced in 1998, the Company does not prepare consolidated financial statements
under accounting principles generally accepted in Germany (German GAAP).
COMPARABLE INFORMATION/PRO FORMA INFORMATION:
The companies of the Salomon group were consolidated as of January 1, 1998. For
comparative purposes pro forma financial information excluding direct and indirect effects
of the acquisition of the Salomon group is presented in the column adidas (comparable)