Siemens 2010 Annual Report Download - page 279

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 Greek tax authorities have audited Siemens A.E.’s books
for the  to  and  to  tax years. In the third
quarter of fiscal , based on a preliminary communication
of the findings of the tax audits, Siemens A.E. made payments
under a tax law enacted in April  to settle certain matters
for which provisions had been established. Siemens A.E. does
not expect any further material findings by the Greek tax au-
thorities which would require Siemens A.E. to make additional
material payments.
In December , the Polish Agency of Internal Security
(AWB) remanded into custody an employee of Siemens Health-
care Poland, in connection with an investigation regarding a
public tender issued by the hospital of Wroclaw in . Ac-
cording to the AWB, the Siemens employee and the deputy
hospital director are accused of having manipulated the tender
procedure. In October , the investigation was closed.
In April , the Defense Criminal Investigative Service of the
U.S. Department of Defense conducted a search at the prem-
ises of Siemens Medical Solutions USA, Inc. in Malvern, Penn-
sylvania, in connection with an investigation relating to a
Siemens contract with the U.S. Department of Defense for the
provision of medical equipment.
In June , Siemens AG and two of its subsidiaries voluntarily
self-reported, among others, possible violations of U.S. Export
Administration Regulations to the responsible U.S. authorities.
As previously reported, since July  the EU Anti-Fraud Of-
fice OLAF, its Romanian equivalent DELAF and the Romanian
public prosecutor DNA have been investigating allegations of
fraud in connection with the  award of a contract to FORTE
Business Services (now Siemens IT Solutions and Services Ro-
mania) to modernize the IT infrastructure of the Romanian judi-
ciary. On September , , OLAF put the matter on monitoring
status and decided not to open formal proceedings. DELAF re-
ferred the matter to DNA and closed its investigations.
For certain legal proceedings information required under IAS
, Provisions, Contingent Liabilities and Contingent Assets, is
not disclosed, if the Company concludes that the disclosure can
be expected to seriously prejudice the outcome of the litigation.
In addition to the investigations and legal proceedings de-
scribed above, Siemens AG and its subsidiaries have been
named as defendants in various other legal actions and pro-
ceedings arising in connection with their activities as a global
diversified group. Some of these pending proceedings have
been previously disclosed. Some of the legal actions include
claims or potential claims for punitive damages or claims for
indeterminate amounts of damages. Siemens is from time to
time also involved in regulatory investigations beyond those
described above. Siemens is cooperating with the relevant
authorities in several jurisdictions and, where appropriate,
conducts internal investigations regarding potential wrongdo-
ing with the assistance of in-house and external counsel. Given
the number of legal actions and other proceedings to which
Siemens is subject, some may result in adverse decisions.
Siemens contests actions and proceedings when it considers it
appropriate. In view of the inherent difficulty of predicting the
outcome of such matters, particularly in cases in which claim-
ants seek indeterminate damages, Siemens may not be able to
predict what the eventual loss or range of loss related to such
matters will be. The final resolution of the matters discussed in
this paragraph could have a material effect on Siemens’ busi-
ness, results of operations and financial condition for any re-
porting period in which an adverse decision is rendered.
However, Siemens currently does not expect its business, re-
sults of operations and financial condition to be materially af-
fected by the additional legal matters not separately discussed
in this paragraph.
 – Additional disclosures
on financial instruments
The following table presents the carrying amounts of each
category of financial assets and financial liabilities:
September ,
 
Financial assets:
Loans and receivables 24,749 24,119
Cash and cash equivalents 14,108 10,159
Derivatives designated
in a hedge accounting relationship 2,232 1,895
Financial assets held for trading 1,410 976
Available-for-sale financial assets 732 561
43,231 37,710
Financial liabilities:
Financial liabilities measured
at amortized cost 28,922 28,539
Financial liabilities held for trading 1,098 864
Derivatives designated
in a hedge accounting relationship 164 134
30,184 29,537