HISTORY OF ADIDAS

Acquired intangible fixed assets are recognized at

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Acquired intangible fixed assets are recognized at cost and subject to periodic straight- line amortization over their expected useful lives. The intangible fixed assets acquired in 2009 in the course of the transfer of the brand management function are amortized over a useful life of eight years. Tangible fixed assets are recognized at (acquisition or production) cost. All recognizable direct and overhead costs are included in production costs. Items with a finite life are depreciated/amortized over their expected useful lives Write-downs to the lower fair value are also recognized if impairment is anticipated to be other than temporary. Long-term financial assets are recognized at cost. To the extent necessary, write-downs are made to their lower fair value. If the reasons for the write-down no longer apply, the write-down is reversed to no higher than the historical cost of the asset. Inventories are measured at the lower of cost or market. Manufacturing costs comprise direct costs that must be capitalized and appropriate portions of overhead costs. Allowances are taken for discernible fashion and technical risks, age structure, and marketability. Receivables and other assets are generally recognized at nominal values. Individual adjustments and allowances for doubtful accounts are taken to cover discernible risks.
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EXECUTIVE SUMMARY This report makes available for use of an evaluation and analysis of previous and current profitability, liability and financial stability of the companies Adidas, Polo Ralph Lauren, and Nike. These companies sell various similar products ranging from shoes to clothing,
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Acquired intangible fixed assets are recognized at cost and...

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