Siemens 2006 Annual Report Download - page 245

International Financial Reporting Standards
(in millions of €) 241
2 Reconciliation of equity and net income from U.S. GAAP to IFRS
The following reconciliation describes the effect of major differences between U.S. GAAP and
IFRS on the equity as of September 30, 2006 and 2005 and the equity in the opening balance
sheet as of October 1, 2004, respectively, as well as on net income for fiscal years 2006 and
2005, respectively.
(unaudited)
Opening
Explana- (unaudited) balance
tory Year ended sheet as of
note September 30, October 1,
2006 2005 2004
Equity under U.S. GAAP 29,306 27,022 26,760
Change in presentation of minority interest a 702 656 529
Equity under U.S. GAAP, including minority interest 30,008 27,678 27,289
Capitalization of development costs b 251 230 217
Investments accounted for using the equity method c (141) (164) (182)
Sale and leaseback transactions d 207 186 208
Financial instruments e 252 (266) (235)
Pensions and other post-employment benefits f (1,667) (849) (1,932)
Termination benefits g (532) (305) (347)
Provisions h (385) (234) (62)
Other (191) (69) (36)
Deferred taxes i (1,527) (2,026) (1,664)
Total adjustments (3,733) (3,497) (4,033)
Equity under IFRS 26,275 24,181 23,256
Explana- (unaudited)
tory Year ended
note September 30,
2006 2005
Net income under U.S. GAAP 3,033 2,248
Change in presentation of minority interest a 213 158
Net income under U.S. GAAP, including minority interest 3,246 2,406
Capitalization of development costs b 17 13
Investments accounted for using the equity method c 32 15
Sale and leaseback transactions d 21 (22)
Financial instruments e (294) 64
Pensions and other post-employment benefits f 613 552
Termination benefits g (231) 42
Provisions h (148) (173)
Other (110) (60)
Deferred taxes i 189 (177)
Total adjustments 89 254
Net income under IFRS 3,335 2,660