Siemens 2010 Annual Report Download - page 201

113 Report on post-balance sheet date events
114 Report on expected developments and associated
material opportunities and risks
128 Information required pursuant to § () and
§ () HGB and explanatory report
133 Information required pursuant to § () and
§ () no.  HGB and explanatory report
135 Compensation and declaration pursuant to §a HGB
135 Additional information for supplemental
financial measures
138 Siemens AG (Discussion on basis of HGB)
147 Consolidated Financial Statements
261 Additional information

The activities of our internal corporate audit function form a
further element in the control system. Throughout the group
and on a continuous basis, the Siemens’ internal corporate
audit function carries out audits with respect to the compli-
ance with guidelines and the reliability and functional opera-
tion of our control system as well as the adequacy and effec-
tiveness of our risk management system.
In addition, and in accordance with the requirements of the
Sarbanes-Oxley Act, we have rules for accounting-related com-
plaints and a Code of Ethics for Financial Matters to be certified
by the Chief Executive Officer, the Chief Financial Officer, and
the Head of our Financial Reporting and Controlling depart-
ment, as well as other senior financial personnel concerned
with the financial closing process.
ADDITIONAL INFORMATION RELATED TO THE
SEPARATE FINANCIAL STATEMENTS (HGB) OF
SIEMENS AG
Siemens AG as the parent company of the Siemens Group is
integrated into the company-wide accounting-related internal
control system described above. Generally, the information set
out above also applies for Siemens AG’s separate financial
statements prepared in accordance with the German Commer-
cial Code (HGB).
The Consolidated Financial Statements are prepared in accor-
dance with IFRS. Where required, i.e. for purposes of preparing
statements for local regulatory or tax purposes, data is adopted
in accordance with relevant national regulations by means of
reconciliation at account level. Accordingly, accurately deter-
mined IFRS closing data also forms an important basis for the
separate financial statements of Siemens AG. In the case of
Siemens AG and other group companies required to prepare
financial statements in accordance with HGB, the conceptual
framework described above is complemented by our manda-
tory HGB closing guidelines and an HGB chart of accounts.
The manual and system-based control mechanisms referred to
above generally also apply when reconciling the IFRS closing
data to the separate HGB financial statements. The information
relating to the systematic monitoring of the design and operat-
ing effectiveness of the accounting-related internal control
system applies only to the Consolidated Financial Statements
in accordance with IFRS.
Compensation report and Corporate
Governance statement pursuant
to §a of the German commercial
code (HGB)
The Compensation report outlines the principles underlying
the determination of the total compensation of the members
of the Managing Board of Siemens AG, and sets out the struc-
ture and level of the remuneration of the Managing Board
members. It also describes the policies governing and levels of
compensation paid to Supervisory Board members. The Com-
pensation report is based on the recommendations and sug-
gestions of the German Corporate Governance Code and is in
compliance with the applicable legal requirements of §§ 
() no. a and  () no.  HGB. As an integral part of the Notes
to Consolidated Financial Statements, the Compensation re-
port is part of the audited Consolidated Financial Statements.
The Compensation report is presented within the section “Cor-
porate Governance,” included in this Annual Report for the
fiscal year .
The Corporate Governance statement pursuant to §a HGB
is an integral part of the Combined management’s discussion
and analysis. It is presented within the section “Corporate
Governance,” included in this Annual Report for the fiscal year
.
Additional information for
supplemental financial measures
In fiscal , we initiated our Fit program, which con-
tinued through fiscal . Beginning with fiscal , One
Siemens will be our framework for capital efficient growth and
sustainable value creation. For further information, see “Busi-
ness and operating environment – Financial performance
measures.”
As part of One Siemens we advanced financial indicators in-
cluded in Fit, particularly Return on capital employed as
well as adjusted industrial net debt and correspondingly our
metric adjusted EBITDA / adjusted industrial net debt as a mea-
sure for the capital structure. The following tables report these
financial indicators as defined under our Fit program as
well as under One Siemens.