The accompanying consolidated financial statements have been prepared with Merck KGaA, Darmstadt, which manages the operations of the Merck Group, as parent company. In accordance with the provisions of the German financial reporting disclosure law (Publizitätsgesetz), consolidated financial statements are also prepared for E. Merck KG, the ultimate parent company and general partner of Merck KGaA with an equity interest of 70.27% as of December 31, 2010. These include Merck KGaA and its subsidiaries. The authoritative German versions of these financial statements are filed with the electronic German Federal Gazette (elektronischer Bundesanzeiger) and can then be accessed at www.ebundesanzeiger.de.
The consolidated financial statements of the Merck Group have been prepared in accordance with consistent accounting policies. Pursuant to section 315a of the German Commercial Code (HGB), the International Financial Reporting Standards (IFRS) in force on the reporting date and adopted by the European Union as issued by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee have been applied.
The following amendments to standards and the following interpretations take effect as of fiscal 2010:
- Amendment to IAS 27 “Consolidated and Separate Financial Statements”
- Amendment to IAS 39 “Financial Instruments: Recognition and Measurement: Eligible Hedged Items”
- Revised version and subsequent amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards”
- Amendment to IFRS 2 “Share-based Payment“
- Revised version of IFRS 3 “Business Combinations “
- “Improvements to International Financial Reporting Standards“ (issued by the IASB in April 2009)
- IFRIC 12 ”Service Concession Arrangements”
- IFRIC 15 “Agreements for the Construction of Real Estate”
- IFRIC 16 “Hedges of a Net Investment in a Foreign Operation”
- IFRIC 17 “Distributions of Non-cash Assets to Owners”
- IFRIC 18 “Transfers of Assets from Customers”
The revised version of IFRS 3 was applied to the first-time consolidation of Millipore.
The major consequence of this was recognizing acquisition-related costs as expenses.
Details on the first-time consolidation of Millipore can be found under “Scope of consolidation”. The other new rules do not have any material effects on the consolidated financial statements.
The following amendments to standards as well as the following interpretation and amendment to an interpretation will take effect as of fiscal 2011:
- Revised version of IAS 24 “Related Party Disclosures“
- Amendment to IAS 32 “Financial Instruments: Presentation – Classification of Rights Issues”
- Amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards: Limited Exemption from Comparative IFRS 7 Disclosures for First-Time Adopters”
- IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments“
- Amendment to IFRIC 14 “IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction“
We currently do not expect the new rules to have any material effects on the consolidated financial statements.
In addition, the following standard and amendments to standards were published by the International Accounting Standards Board (IASB), but not yet adopted by the EU:
- IFRS 9 “Financial Instruments”
- Amendment to IAS 12 “Income taxes”
- Amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards”
- Amendment to IFRS 7 “Financial Instruments: Disclosures“
- “Improvements to International Financial Reporting Standards” (issued by the IASB in May 2010)
The effects that IFRS 9, which is expected to be adopted as of 2013, will have on the consolidated financial statements are currently being examined. We currently do not expect the other new rules to have any material effects on the consolidated financial statements.