Adidas 2001 Annual Report Download - page 69

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64 Consolidated Accounts
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:
ad id as 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. Erim a products include teamsport apparel.
Salo m o n branded products include ski and snowboard equipment
(skis, snowboards, boots and bindings) as well as hiking boots and inline
skates which are designed and manufactured mainly in France, Italy and
Romania. In addition to these products the product range was expanded
into functional apparel in 2001. The Bo n fire brand offers snowboard
apparel and streetwear. Clich é is the new brand for skateboard equip-
ment, footwear and apparel.
Mavic products include rims and wheels for mountain bikes and road
racing.
Taylo rMad e develops and assembles or manufactures high-quality golf
clubs, golf balls and golf accessories. ad id as Go lf branded products
include footwear and apparel.
The Company’s headquarters are located in Herzogenaurach, Germany.
1. General
The accompanying consolidated financial statements of adidas-Salomon
AG and its subsidiaries (collectively the “Company” or “adidas-Salomon”)
are prepared in accordance with accounting principles adopted by the
International Accounting Standards Board (International Accounting
Standards – “IAS”). The Company applied all International Accounting
Standards and Interpretations of the Standing Interpretations Committee
(“SIC”) effective as at December 31, 2001 and 2000, respectively.
The following new standards were adopted effective January 1, 2001:
IAS 12 (revised 2000) “Income Taxes”
IAS 19 (revised 2000) “Employee Benefits”
IAS 39 (revised 2000) “Financial Instruments: Recognition and
Measurement”
IAS 40 “Investment Property”
The effects of IAS 39 are summarized in the consolidated statement of
changes in equity and further information is disclosed in Notes 2 and 20.
The adoption of all other new or revised standards had no material
impact on the Company’s financial position, results of operations or
cash flows and its reporting thereon.
German Statutory Reporting
The Company does not prepare consolidated financial statements under
accounting principles generally accepted in Germany (German GAAP)
pursuant to the exemption in § 292a of the German Commercial Code
(HGB).
2. Summary of Significant Accounting Policies
The consolidated financial statements are prepared in accordance with
the consolidation, accounting and valuation principles described below.
Certain items previously reported in specific financial statement captions
have been reclassified to conform with the 2001 presentation.
Framework for Accounting Policies in Accordance with IAS and Explanation
of Major Differences Compared with German Accounting Policies
Set out below are the major differences in accounting policies and con-
solidation methods compared with German law as set out in § 292a
section 2 No. 4b of the German Commercial Code (HGB).
Notes to Consolidated Financial Statements (IAS)