Siemens 2010 Annual Report Download - page 204

6 To our shareholders 21 Corporate Governance 49 Combined management’s discussion and analysis
50 Business and operating environment
78 Fiscal  – Financial summary
81 Results of operations
98 Financial position
110 Net assets position
113 Overall assessment of the economic position

cancellations, the order backlog is also subject to changes in
the consolidation group and to currency translation effects.
There is no standard system for compiling and calculating new
orders and order backlog information that applies across com-
panies. Accordingly, our new orders and order backlog may not
be comparable with new orders and order backlog reported by
other companies. We subject our new orders and our order
backlog to internal documentation and review requirements.
We may change our policies for recognizing new orders and
order backlog in the future without previous notice.
Siemens AG (Discussion on basis of
German Commercial Code (HGB))
The management report for Siemens AG and the group man-
agement report (Management’s discussion and analysis) for
fiscal  have been combined pursuant to §  () German
Commercial Code (HGB) in conjunction with §  () HGB. The
annual financial statements for Siemens AG in accordance with
HGB and the combined group management report are pub-
lished simultaneously in the electronic version of the German
Federal Gazette.
The provisions of the German Accounting Law Modernization
Act (BilMoG), which was issued in May , have been ad-
opted early and applied for the first time in Siemens AG’s fiscal
year . As permitted by the regulations under BilMoG, prior-
year figures have generally not been restated. The first-time
adoption of the BilMoG regulations influenced Extraordinary
result as well as Retained earnings as of October , .
BUSINESS AND ECONOMIC ENVIRONMENT
Siemens AG, whose head offices are situated in Berlin and
Munich, is the parent company of the Siemens group. The in-
dustrial and financial activities of the group are brought to-
gether in a large investment portfolio. The breakdown into
segments follows the structure of the Siemens group, which
comprises the three Sectors Industry, Energy and Healthcare.
The OSRAM Division operates as an independent legal entity,
not as part of Siemens AG.
The Sectors referred to above conduct their core business with
customers in Germany and exports from Germany via Siemens
AG. The remainder of the global business is conducted via
value-creation activities in subsidiaries, the shares in the sub-
sidiaries are held either directly or indirectly by Siemens AG.
In addition, the Siemens group operates the Cross-Sector Busi-
nesses known as Siemens IT Solutions and Services and
Siemens Financial Services (SFS). Siemens IT Solutions and
Services is currently undergoing strategic reorientation and as
of October ,  was established as a separate legal entity
wholly owned by Siemens AG. The activities of SFS are con-
ducted largely outside Siemens AG.
In general, the segment Equity Investments comprises equity
stakes held by Siemens AG which are not allocated to a Sector,
a Cross-Sector Business, Siemens Real Estate (SRE), Pensions or
Corporate Treasury for strategic reasons. Main investments