Siemens 2010 Annual Report Download - page 207

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

ment principles include an option to use as discount rate the
average market interest rate for an assumed residual period of
 years, as determined and published by Deutsche Bundes-
bank, as well as the requirement to consider increases in sala-
ries and pensions expected in the future. For further informa-
tion on the effects of the first-time adoption of BilMoG on our
Extraordinary result, refer to the annual financial statements
for Siemens AG.
The current-year income tax expense decreased to € million
(fiscal : € million), in particular as a result of tax re-
funds for prior years. In contrast, the deferred tax expense in-
creased significantly to € million (fiscal : € million).
This increase relates to deferred taxes recorded for changes in
measurement of indirect pension obligations in fiscal  ac-
cording to BilMoG. A further decrease in deferred tax assets is
related to the reduction in tax loss carryforwards, initially rec-
ognized as of October ,  in retained earnings following
the adoption of BilMoG. Income taxes on the negative extraor-
dinary items figure comprised both current and deferred tax
benefits amounting to a total of € million, of which €
million was attributable to adoption of the BilMoG require-
ments.
After deduction of taxes, the net income for the year was
€, million, up from €, million in fiscal .
As the parent company of the Siemens group, Siemens AG is
integrated into the group’s financial reporting and control
systems, which are based on the International Financial Re-
porting Standards (IFRS). Further information in this regard
can be found in “Business and operating environment – Finan-
cial key performance indicators.”
NET ASSETS AND FINANCIAL POSITION
Total assets of Siemens AG increased by €, million year-
over-year. This increase includes two offsetting effects. Ex-
panded operating activities and the above-mentioned merger
of subsidiaries into Siemens AG resulted in a significant in-
crease in assets, while adoption of BilMoG requirements, espe-
cially the change in presentation of treasury stock, had the
effect of reducing total assets.
The relevant details are disclosed in the notes to the annual
financial statements of Siemens AG.
Siemens AG condensed statement of financial position
September ,
(in millions of €)  
Assets
Non-current assets
Intangibles and tangible assets 2,362 1,960
Financial assets 36,364 35,944
38,726 37,904
Current assets
Trade and other receivables, other assets 11,282 10,347
Marketable securities 1 3,024
Cash and cash equivalents 6,125 3,480
17,408 16,851
Prepaid expenses 52 49
Deferred tax assets 3,734 1,961
Difference from allocation
of assets and liabilities 30 –
Total Assets 59,950 56,765
Liabilities and equity
Shareholders equity 19,848 19,625
Special reserve with an equity portion 803 808
Accruals and provisions
Pension plans and similar commitments 9,547 9,628
Other accruals and provisions 7,654 6,339
17,201 15,967
Liabilities
Liabilities to banks 38 49
Payments in advance 2,354 1,772
Trade and other payables, other liabilities 19,438 18,484
21,830 20,305
Deferred income 268 60
Total liabilities and equity 59,950 56,765
As of September , , non-current assets increased by
€ million compared to the amount as of September ,
. The change in intangibles and tangible assets was pri-
marily a result of the above-mentioned merger of subsidiaries
into Siemens AG. The reasons for the increase in financial as-
sets include the conversion into equity of a shareholder loan
previously extended to NSN as well as other capital contribu-
tions to subsidiaries.