Financial review

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) approved for use in the EU, observing the IAS and IFRS standards and SIC and IFRIC interpretations in force as of December 31, 2007.

In the Finnish Accounting Act and the provisions issued under it, International Financial Reporting Standards refer to standards approved for use in the EU in accordance with the procedure laid down in the EU regulation (EC) No 1606/2002, and their interpretations.

The Group has applied the following revised standards as of January 1, 2007:

  • IFRS 7: Financial Instruments: Disclosures
    The adoption of the standard has increased the amount of qualitative and quantitative disclosures about financial instruments (their impact on the Group’s financial position and exposure to risks arising from them).
  • IAS 1: Presentation of Financial Statements
    The revision of the standard requires disclosure of the company’s capital and its management.

The interpretations IFRIC 7 (Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies), IFRIC 8 (Scope of IFRS 2), IFRIC 9 (Reassessment of Embedded Derivatives) and IFRIC 10 (Interim Financial Reporting and Impairment) that came into force in 2007 did not have any effect on the consolidated financial statements.

The following interpretations that will come into force in 2008 are not expected to have any effect on the consolidated financial statements: IFRIC 11 (Group and Treasury Share Transactions), IFRIC 12 (Service Concession Arrangements) and IFRIC 14 (IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction).

The Group will adopt the following changes and new standards in 2009 (not yet approved for use in the EU):

  • IAS 1: Presentation of Financial Statements
    The revised standard will change the presentation of the consolidated income statement and statement of changes in shareholders’ equity.
  • IFRS 8 (Operating Segments)
    IFRS 8 will replace the present IAS 14 (Segment Reporting) standard, and in accordance with it, segment reporting will be based on the management’s internal reporting and the accounting principles adopted therein. According to the Group’s estimate, the new standard will not change Amer Sports’ current segmentation, which is consistent with the Group’s internal reporting. Furthermore, IFRS 8 requires disclosures e.g. about the Group’s geographical areas and significant customers.

The following amendments and interpretations that will come into force in 2009 will not have any impact on the consolidated financial statements: IAS 23 (Borrowing Costs) and IFRIC 13 (Customer Loyalty Programmes).

The Group will adopt the amendments in the standard IFRS 3 (Business Combinations) in 2010. The amendments include, among other things, a requirement to expense all transaction costs. Management is assessing the impact of this revision on the Group’s financial statements.

The consolidated financial statements are presented in millions of euros and are based on historical cost conventions with the exception of available-for-sale investments, financial assets and liabilities measured at fair value through profit and loss as well as derivative financial instruments at fair value.