Mercedes 2010 Annual Report Download - page 181

Consolidated Financial Statements | Notes to the Consolidated Financial Statements | 177
Notes to the Consolidated Financial Statements
1. Significant accounting policies
General information
The consolidated financial statements of Daimler AG and its
subsidiaries (“Daimler” or “the Group”) have been prepared
in accordance with Section 315a of the German Commercial
Code (HGB) and International Financial Reporting Standards
(IFRS) and related interpretations as issued by the International
Accounting Standards Board (IASB) and as adopted by the
European Union.
Daimler AG is a stock corporation organized under the laws
of the Federal Republic of Germany. The company is entered
in the Commercial Register of the Stuttgart District Court
under No. HRB 19360 and its registered office is located at
Mercedesstraße 137, 70327 Stuttgart, Germany.
The consolidated financial statements of Daimler AG are presented
in euros (€).
The Board of Management authorized the consolidated financial
statements for publication on February 28, 2011.
Basis of preparation
Applied IFRSs. The accounting policies applied in the consoli-
dated financial statements comply with the IFRSs required to
be applied as of December 31, 2010.
In January 2008, the IASB published revisions of IFRS 3 Business
Combinations and IAS 27 Consolidated and Separate Financial
Statements. Major changes are: (a) the requirement that assets
acquired, liabilities assumed and equity interests be consistently
measured at fair value on the acquisition date; (b) costs incurred
in an acquisition are to be recognized in the income statement
of the period; (c) option of measuring any non-controlling
interest in entities acquired at fair value; and (d) once control
is obtained, all other increases and decreases in ownership
interest are reported in equity. Daimler will adopt the standards
prospectively as of January 1, 2010.
IFRSs issued but neither EU endorsed nor yet adopted.
In November 2009, the IASB published IFRS 9 Financial Instru-
ments as part of its project of a revision of the accounting
guidance for financial instruments. Requirements for financial
lia bilities were added to IFRS 9 in October 2010. The require-
ments for financial liabilities were carried forward unchanged
from IAS 39, with the exception of certain changes to the fair
value option for financial liabilities that address the consideration
of own credit risk. The new standard provides guidance on the
accounting of financial assets and financial liabilities as far as
classification and measurement are concerned. The standard
will be effective for annual periods beginning on or after January 1,
2013. Earlier application is permitted. The Group will not early
adopt IFRS 9 Financial Instruments for 2011. Daimler will determine
the expected effects on the Group’s consolidated financial
statements.
Other IFRSs issued but not required to be adopted are not
expected to have a significant influence on the Group’s financial
position, financial performance or statement of cash flows.
Presentation. Presentation in the statement of financial posi-
tion differentiates between current and non-current assets
and liabilities. Assets and liabilities are classified as current
if they mature within one year or within a longer operating
cycle. Deferred tax assets and liabilities as well as assets and
provisions for pensions and similar obligations are presented
as non-current items. The consolidated statement of income/
loss is presented using the cost-of-sales method.
Commercial practices with respect to certain products manu-
factured by the Group necessitate that sales financing, including
leasing alternatives, be made available to the Group’s custom-
ers. Accordingly, the Group’s consolidated financial statements
are significantly influenced by the activities of its financial
services business.