2. SCOPE OF CONSOLIDATION
The Consolidated Financial Statements include SAP AG and all of its majority-owned subsidiaries. All significant intercompany transactions and balances relating to consolidated entities have been eliminated.
The following table summarizes the change in the number of companies included in the Consolidated Financial Statements:
Number of Companies Consolidated in the Financial Statements
| |
German |
Foreign |
Total |
| December 31, 2003 |
21 |
75 |
96 |
| Additions |
0 |
2 |
2 |
| Disposals |
6 |
4 |
10 |
| December 31, 2004 |
15 |
73 |
88 |
The impact of changes in the scope of companies included
in the Consolidated Financial Statements during 2004 did not
have a significant effect on the comparability of the Consolidated
Financial Statements presented. The additions relate
to newly founded companies. The disposals are mainly due to
mergers within the Group.
Five companies, in which SAP does not have a controlling
financial interest but has the ability to exercise significant
influence over the operating and financial policies of the
investee ("associated companies"), are accounted for using the equity method.
Under German law subsidiaries of a holding company are exempt from preparing standalone financial statements if they are included in the consolidated financial statements of their holding company and the use of this exemption is disclosed in the notes to the consolidated financial statements.
All affiliated companies and associated companies are listed in Note 39 with ownership percentages, revenues, net income, equity, and numbers of employees.
Separate financial statements were not prepared for the following subsidiaries as allowed under the exemptions codified in HGB, section 264b:
- SAP Hosting AG & Co. KG, St. Leon-Rot
- SAP Deutschland AG & Co. KG, Walldorf
|
