Merck Notes to the Group accounts Audited

Company information

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, 2011. 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 be accessed at www.ebundesanzeiger.de.

Reporting principles

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 rules take effect as of fiscal 2011:

  • Revised version of IAS 24 “Related Party Disclosures”
  • Amendment to IAS 32 “Financial Instruments: Presentation”
  • Amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards”
  • “Improvements to International Financial Reporting Standards“ (issued by the IASB in May 2010)
  • 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”

The new rules do not have any material effects on the consolidated financial statements.

The following rule takes effect as of fiscal 2012:

  • Amendment to IFRS 7 “Financial Instruments: Disclosures”

From today’s perspective we do not expect the new rule to have a material impact on the consolidated financial statements.

The following rules were published by the International Accounting Standards Board (IASB) and the IFRS Interpretations Committee, but not yet adopted by the EU as of the balance sheet date:

  • IFRS 9 “Financial Instruments“
  • IFRS 10 “Consolidated Financial Statements“
  • IFRS 11 “Joint Arrangements“
  • IFRS 12 “Disclosure of Interests in Other Entities“
  • IFRS 13 “Fair Value Measurement“
  • Amendment to IAS 1 “Presentation of Financial Statements“
  • Amendment to IAS 12 “Income Taxes“
  • Amendment to IAS 19 “Employee Benefits“
  • Amendment to IAS 27 “Consolidated and Separate Financial Statements“
  • Amendment to IAS 28 “Investments in Associates“
  • Amendment to IAS 32 “Financial Instruments: Presentation”
  • Amendment to IFRS 1 “First-time Adoption of International Financial Reporting Standards“
  • Amendment to IFRS 7 “Financial Instruments: Disclosures“
  • IFRIC 20 “Stripping Costs in the Production Phase of a Surface Mine“

The effects that IFRS 9, which is expected to be adopted as of 2015, 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.