Siemens 2005 Annual Report Download - page 146

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1Basis of presentation
The accompanying Consolidated Financial Statements present the operations of Siemens AG and
its subsidiaries, (the Company or Siemens). The Consolidated Financial Statements have been
prepared in accordance with United States Generally Accepted Accounting Principles (U.S. GAAP).
Siemens has prepared and reported its Consolidated Financial Statements in euros (€).
Siemens is a German based multinational corporation with a balanced business portfolio of
activities predominantly in the field of electronics and electrical engineering (for further infor-
mation see Note 30).
In order to comply with §292a of the German Commercial Code (HGB), the Consolidated
Financial Statements were supplemented with Management’s Discussion and Analysis on a con-
solidated basis and additional explanations. Therefore, the Consolidated Financial Statements,
which have to be filed with the Commercial Registry and published in the German Federal
Gazette (Bundesanzeiger), comply with the Fourth and Seventh Directives of the European Com-
munity. For the interpretation of these directives, the Company relied on the German Accounting
Standard No. 1 of the German Accounting Standards Committee.
The Consolidated Financial Statements and Management’s Discussion and Analysis as of
September 30, 2005, prepared in accordance with §292a of the HGB, are being filed with the
Commercial Registries of the Berlin-Charlottenburg and Munich District Courts under the
numbers HRB 12300 and HRB 6684, respectively.
Financial statement presentation
The presentation of the Company’s worldwide financial data is accompanied by a component
model presentation breaking down Siemens’ financial position, results of operations and cash
flows into three components (see below). These components contain the Company’s reportable
segments (also referred to as Groups).
■Siemens – Represents the Consolidated Financial Statements of the Company.
■Operations – Defined as Siemens’ twelve operating Groups including certain operating
activities not associated with these Groups and centrally managed items including corporate
headquarters, but excluding the activities of the Financing and Real Estate Groups and the
Corporate Treasury.
■Financing and Real Estate – Siemens’ Financing and Real Estate Groups are responsible
for the Company’s international leasing, finance, credit and real estate management activities.
■Eliminations, reclassifications and Corporate Treasury – Captures separately the consoli-
dation of transactions among Operations and Financing and Real Estate, as well as certain
reclassifications. This component also includes the Company’s Corporate Treasury activities.
Management’s discussion and analysis
Notes