Cash and Cash Equivalents Segment Reporting Derivative Financial Instruments/Hedge Accounting Currency Translation total amount of cash and cash equivalents is consistent with the cashflow statement. Cash and cash equivalents include liquid assets and bank  balances. Bank balances that are not required to finance current assets are invested at terms of presently up to six months. The Reporting is primarily based on geographical regions. Since PUMA is engaged in only one business field, namely the sporting goods industry, allocation for the purpose of secondary reporting follows  the internal reporting structure; i.e., according to the footwear, apparel and accessories product segments. effective are disclosed in equity. In the absence of effectivity,  the differences are included in operating results. The amounts recorded as a special item under equity are included in operating results during the same period in which the planned hedge  transaction impacts the income statement. The gains or losses from derivative financial instruments used as a fair value hedge and the respective gains or losses from the hedged item are  recognized in operating results.  Changes in the market value of derivatives which are used for  and qualify as a cashflow hedge and which have proved to be  Derivate financial instruments are initially recorded in the balance sheet at acquisition costs and subsequently at market values. The recording of gains or losses depends on the type of items to be hedged. At the time of concluding a hedge transaction, the  company classifies certain derivatives either as a hedge of the fair value of a reported asset or a reported liability (fair value hedge), as a hedge of a planned transaction (cashflow hedge) or as a hedge of a net investment in an economically independent  foreign subsidiary. The assets and liabilities of foreign subsidiaries which do not have the Euro as their functional currency were translated into Euro at the middle rates valid at the balance sheet date. Expenses and  As a general rule, foreign currency monetary items are disclosed in the individual financial statements of consolidated companies at the rates valid at the balance sheet date. The resulting  currency gains and losses are immediately credited or charged to operations.  income were translated at annual average rates. Differences  from net assets currency translation through changed exchange rates in comparison with the previous year were shown directly  in equity. Goodwill resulting from the acquisition of foreign  subsidiaries within the scope of initial consolidation were  translated in Euro and extrapolated accordingly.  Foreword | Mission | Management Report | Share | Marketing |  Consolidated Financial Statements - IFRS - | Report of Supervisory Board | Board of Management 68