Merck 2008 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2008 Merck annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 153

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153

Notes
Preliminary remarks
The accompanying consolidated financial statements have been prepared with
Merck KGaA – which manages the operations of the Merck Group – as parent company.
In accordance with the provisions of the German financial reporting disclosure law
(Publi zitäts ge setz), consolidated financial statements are also prepared for E. Merck KG
(until and including December 31, 2008: E. Merck OHG), the general partner of
Merck KGaA with an equity interest of 70.3% as of December 31, 2008. 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.
Application of International Financial Reporting Standards (IFRS)
The consolidated financial statements of the Merck Group – with Merck KGaA as
parent company – have been prepared in accordance with consistent accounting poli-
cies. Pursuant to Section 315a HGB (German Commercial Code), 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 International Financial Reporting Interpretations Committee (IFRIC) have been
applied.
The following amendments to standards as well as the following interpretations were
effective for the first time in fiscal 2008:
– Amendments to IAS 39 and IFRS 7: "Reclassification of Financial Instruments"
– IFRIC 11: "IFRS 2: Group and Treasury Share Transactions"
The new rules had no material effects on the consolidated financial statements of the
Merck Group.
The following standard and amendments to standards and the following interpretations
will take effect as of fiscal 2009:
– IFRS 8 Operating Segments"
– Revised version of IAS 1 Presentation of Financial Statements: A Revised Presentation
– Revised version of IAS 23 "Borrowing Costs"
– Amendment to IAS 32 and IAS 1: "Puttable Financial Instruments and Obligations
Arising on Liquidation"
– Amendment to IFRS 1 and IAS 27: "Cost of an Investment in a Subsidiary, Jointly
Controlled Entity or Asscociate"
– Amendment to IFRS 2 "Share-based payment - Vesting Conditions and Cancellations"
– "Improvements to International Financial Reporting Standards"
– IFRIC 13 "Customer Loyalty Programmes"
– IFRIC 14: "IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction"
We do not expect the new rules to have any material effects on the consolidated
financial statements.
CONSOLIDATED FINANCIAL STATEMENTS OF THE MERCK GROUP 79
78 Statement of Changes
in Net Equity including
Minority Interest
79 Notes
72 Income Statement
73 Balance Sheet
74 Segment Reporting
76 Cash Flow Statement
77 Free Cash Flow
77 Statement of Recognized
Income and Expense