Annual Report 2014 Annual Report 2014
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Notes to the Group accounts
General

(1) Company information

The accompanying consolidated financial statements as at December 31, 2014 have been prepared with Merck KGaA, Frankfurter Strasse 250, 64293 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, 2014. These consolidated financial statements include Merck KGaA and its subsidiaries. The authoritative German versions of these financial statements are filed with the German Federal Gazette (Bundesanzeiger) and can be accessed at www.bundesanzeiger.de

(2) Reporting principles

The consolidated financial statements of the Merck Group have been prepared in accordance with consistent accounting policies and in euros, the reporting currency. Pursuant to section 315a of the German Commercial Code (HGB), the International Financial Reporting Standards in force on the reporting date and adopted by the European Union as issued by the International Accounting Standards Board and the IFRS Interpretations Committee (IFRS and IAS, as well as IFRIC and SIC) have been applied. The figures reported in the consolidated financial statements have been rounded, which may lead to individual values not adding up to the totals presented.

The following rules take effect as of fiscal 2014:

  • IFRS 10 “Consolidated Financial Statements”
  • IFRS 11 “Joint Arrangements”
  • IFRS 12 “Disclosure of Interests in Other Entities”
  • Amendments to IAS 27 “Separate Financial Statements”
  • Amendment to IAS 28 “Investments in Associates and Joint Ventures”
  • Amendment to IAS 32 “Financial Instruments: Presentation”
  • Amendment to IAS 36 “Impairment of Assets”
  • Amendment to IAS 39 “Financial Instruments: Recognition and Measurement”
  • Amendments to IFRS 10 “Consolidated Financial Statements”
  • Amendment to IFRS 11 “Joint Arrangements”
  • Amendments to IFRS 12 “Disclosure of Interests in Other Entities”

Merck applied the amendment to IAS 36 “Impairment of Assets” in advance in 2013.

None of the other new standards had a material effect on the consolidated financial statements. In particular, the rules contained in IFRS 10 to IFRS 12 did not lead to any changes based on the current equity holding structures. In regard to the strategic alliance with Pfizer Inc., USA, to develop and commercialize active ingredients in immuno-oncology as well as other alliances, more information can be found in Note [5].

The following standards take effect as of fiscal 2015:

  • Annual Improvements to IFRSs 2011–2013 Cycle
  • IFRIC 21 “Levies”

Merck currently does not expect the new rules to have any material effects on the consolidated financial statements.

As of the balance sheet date, the following standards were published by the International Accounting Standards Board and the IFRS Interpretations Committee, but not yet adopted by the European Union:

  • IFRS 9 “Financial Instruments”
  • IFRS 14 “Regulatory Deferral Accounts”
  • IFRS 15 “Revenue from Contracts with Customers”
  • Amendment to IAS 1 “Presentation of Financial Statements”
  • Amendments to IAS 16 “Property, Plant and Equipment”
  • Amendment to IAS 19 “Employee Benefits”
  • Amendment to IAS 27 “Separate Financial Statements”
  • Amendments to IAS 28 “Investments in Associates and Joint Ventures”
  • Amendment to IAS 38 “Intangible Assets”
  • Amendment to IAS 41 “Agriculture”
  • Amendments to IFRS 10 “Consolidated Financial Statements”
  • Amendment to IFRS 11 “Joint Arrangements “
  • Amendment to IFRS 12 “Disclosure of Interests in Other Entities”
  • Annual Improvements to IFRSs 2010–2012 Cycle
  • Annual Improvements to IFRSs 2012-2014 Cycle

The impact of IFRS 15, which will become effective as of 2017 at the earliest, and of IFRS 9, which will become effective as of 2018 at the earliest, on the consolidated financial statements is currently being examined. From today’s perspective, the other new rules will not have any material effects on the consolidated financial statements.

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