Siemens 2010 Annual Report Download - page 229

147 Consolidated Financial Statements
148 Consolidated Statements of Income
149 Consolidated Statements of Comprehensive Income
150 Consolidated Statements of Financial Position
151 Consolidated Statements of Cash Flow
152 Consolidated Statements of Changes in Equity
154 Notes to Consolidated Financial Statements
(in millions of €, except where otherwise stated
and per share amounts)
261 Additional information

the vesting period the grantees are not entitled to and certain
non-vesting conditions, if applicable. See Note  for further
information on share-based awards.
Prior year information – The presentation of certain prior year
information has been reclassified to conform to the current
year presentation. Specifically, in May , the IASB issued a
standard for improvements to International Financial Report-
ing Standards. In the Consolidated Statements of Cash Flow,
according to an amendment of IAS , Statement of Cash Flows,
cash flows to manufacture or acquire assets held for rental and
subsequent sale in the course of the ordinary activities are
presented as cash flows from operating activities. Previously,
cash outflows in the context of operating leases have been
presented as cash flows from investing activities. The amended
IAS  is effective for annual periods beginning on or after Janu-
ary , . Siemens applied the amendment retrospectively in
the Statement of Cash Flow in fiscal year . The amended
IAS , applied retrospectively in fiscal , resulted in the re-
classification of certain derivative financial instruments, not
qualifying for hedge accounting, from current to non-current.
As of September , , € were reclassified from Other
current financial assets to Other financial assets and €
from Other current financial liabilities to Other financial liabil-
ities. As of September , , the reclassification from Other
current financial assets and liabilities to Other financial assets
and liabilities amounted to € and €, respectively. Begin-
ning in fiscal , the Company presents total interest income
and expense separately in the Consolidated Statements of In-
come in accordance with Part II of the Annual Improvements
Project  of the IASB. Additionally, pension-related interest
income (expense) as well as Impairments, net of reversals of
impairments, on investments accounted for using the equity
method and non-current available-for-sale investments are
reclassified retrospectively in the Consolidated Statements of
Cash Flow to conform to the current year presentation.
Recently adopted accounting pronouncements
In January , the IASB published the revised standards IFRS
, Business Combinations (IFRS  ()) and IAS , Consoli-
dated and Separate Financial Statements (IAS  ()) which
were endorsed in fiscal . The revised standards are effec-
tive for business combinations in annual periods beginning on
or after July ,  and were applied by the Company as of
fiscal  including its consequential amendments to IFRS ,
IFRS  and IAS .
IFRS  () reconsiders the application of acquisition ac-
counting for business combinations. Major changes relate to
the measurement of non-controlling interests, the accounting
for business combinations achieved in stages as well as the
treatment of contingent consideration and acquisition-related
costs. Based on the new regulation, non-controlling interests
may be measured at their fair value (full-goodwill-methodolo-
gy) or at the proportional fair value of assets acquired and lia-
bilities assumed. In business combinations achieved in stages,
any previously held equity interest in the acquiree is remea-
sured to its acquisition date fair value. Any changes to contin-
gent consideration classified as a liability at the acquisition
date are recognized in profit and loss. Acquisition-related costs
are expensed in the period incurred.
Major changes in relation to IAS  () relate to the ac-
counting for transactions which do not result in a change of
control as well as to those leading to a loss of control. If there
is no loss of control, transactions with non-controlling inter-
ests are accounted for as equity transactions not affecting
profit and loss. At the date control is lost, any retained equity
interests are re-measured to fair value. Based on the amended
standard, non-controlling interests may show a deficit balance
since both profits and losses are allocated to the shareholders
based on their equity interests.
In September , the International Accounting Standards
Board (IASB) issued IAS , Presentation of Financial State-
ments: A Revised Presentation (IAS  revised). IAS  revised re-
places IAS , Presentation of Financial Statements (revised in
), as amended in . The revision is aimed at improving
users’ ability to analyze and compare the information given in
financial statements. IAS  revised sets overall requirements for
the presentation of financial statements, guidelines for their
structure and minimum requirements for their content. The
new standard is effective for fiscal periods beginning on or
after January , . The Company retrospectively applied IAS
 revised in fiscal  for all periods presented.
In fiscal , the Company also adopted IAS  Statements of
Cash Flows (retrospectively) and IAS  Property, Plant and
Equipment in conjunction with the  Improvements to
IFRSs as well as IAS  Borrowing Costs (as revised ).
In March , the IASB issued Improving Disclosures about
Financial Instruments (Amendments to IFRS  Financial Instru-
ments: Disclosures) which enhances disclosures about fair
value measurements of Financial Instruments. A three-level