Siemens 2009 Annual Report Download - page 311

223
 Managing Board statements, Independent auditors’ report, Additional information
222 Glossary
225 Index
229 Information resources
230 Siemens’ financial calendar
231 Company structure
233 In dialogue with our investors
EEquity investments The investment in a company accounted for using the equity method (see below).
Equity method The equity method is a method of accounting whereby the investment is initially recognized at
cost and adjusted there after for the post-acquisition change in the investor’s share of net assets
of the investee. The profit or loss of the investor includes the investor’s share of the profit or loss
of the investee.
Expected long-term rate of
return on pension plan assets
The average rate of earnings expected on plan assets.
FFree cash flow A measure of operative cash generation. It represents net cash provided by (used in) operating
activities less cash used for additions to intangible assets and property, plant and equipment.
Functional costs Functional costs include cost of sales, R&D expenses, marketing and selling expenses, and general
administration expenses.
Funded status of pension plan The difference between a pension plan’s defined benefit obligation (DBO) and the fair market value
of assets designated to the pension plan (plan assets) as of a specific date.
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
financial reporting.
German GAAP Short for Generally Accepted Accounting Principles in Germany. The accounting concepts,
measurements, techniques and standards of presentation used in financial statements in Germany
pursuant to the German Commercial Code (HGB).
Goodwill The excess of cost of an acquisition over the fair value of net assets of the acquired entity.
HHedging
Use of derivatives to reduce risks (such as foreign currency exchange rates risk, interest rates risk
or credit risk).
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 financial statements in
accordance with IFRS beginning January 2005 and/or January 2007 at the latest.
JJoint venture A joint venture is a contractual arrangement whereby two or more parties undertake an economic
activity that is subject to joint control.
LLeasing A lease is an agreement whereby the lessor conveys to the lessee in return for a payment or series
of payments the right to use an asset for an agreed period of time.
MMedium-term note program Flexible financing 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 benefit cost
components include service cost, interest cost, expected return on plan assets, amortization of
past service cost or benefits and gains or losses due to settlements and curtailments.
Net working capital Total of current assets less current liabilites required for revenue generation. Includes inventories
and trade receivables, less trade payables and less customer prepayments