Siemens 2008 Annual Report Download - page 321

Glossary 225
GGASC Short for German Accounting Standards Committee. An independent registered association that develops, among
other things, accounting standards for application in the area of consolidated nancial reporting.
German GAAP Short for Generally Accepted Accounting Principles in Germany. The accounting concepts, measurements, techniques
and standards of presentation used in nancial statements in Germany pursuant to the German Commercial Code
(HGB).
Goodwill The excess of cost of an acquired entity over the amounts assigned to assets acquired and liabilities assumed.
HHedging A strategy used to minimize exposure to changes in prices, interest rates or exchange rates by means of derivative
nancial instruments (options, swaps, forward contracts, etc.).
Hybrid bond A hybrid bond is a bond that, due to its subordination, bears the character of both debt and equity.
IIFRS Short for International Financial Reporting Standards, previously International Accounting Standards (IAS). According
to the IAS as endorsed by the European Union, publicly traded European Union companies are required to prepare
their consolidated nancial statements in accordance with IFRS beginning January 2005 and/or January 2007 at the
latest.
JJoint venture A form of business partnership between two or more companies to engage in a commercial enterprise with mutual
sharing of prots and losses.
MMedium-term note program Flexible nancing framework providing for the issuance of notes in rotation in the context of a program unrestricted
in time (constant issue). The notes may be issued in several tranches, with terms and conditions and time of issue
being determined in accordance with then current goals and prevailing market conditions.
Moody’s Investors Service Independent rating agency that assesses securities investment and credit risk.
NNet cash from operating
and investing activities
Total of cash provided by (used in) operating and investing activities as determined in the Statements
of Cash Flow.
Net periodic benefit cost (NPBC) The amount of pension costs recorded in the Statements of Income. Net periodic benet cost components include
service cost, interest cost, expected return on plan assets, amortization of past service cost or benets and gains or
losses due to settlements and curtailments.
RR&D Abbreviation for “research and development.”
Rating Standardized evaluation of issuers’ credit standing and debt instruments, carried out by specialized agencies
(such as Standard & Poor’s or Moody’s Investors Service).
Return on capital employed (ROCE) A measure for the efciency and protability of a company’s investments. It is an indicator of how well a company
is utilizing capital to generate prots.
Risk management Systematic process to identify, assess and monitor various nancial risk factors and to select and implement
measures to handle those risk factors.
SSEC Short for Securities and Exchange Commission. The primary federal agency in the U.S. responsible for regulating
the nancial reporting practices of most publicly owned corporations in connection with the buying and selling of
stocks and bonds.
Standard & Poor’s Independent rating agency that provides evaluation of securities investment and credit risk.
Stock options Form of employee incentive and compensation. The employee is given an option to purchase a company’s shares
if certain targets are met under specied conditions.
UU.S. GAAP Short for United States Generally Accepted Accounting Principles. The accounting concepts, measurements,
techniques and standards of presentation applicable to nancial statements in the U.S.
VVolatility The degree of uctuation for a given price or rate, such as a stock price or currency exchange rate.