Wacker Chemie AG is a listed company with its headquarters in Munich, Germany.
Wacker Chemie AG’s consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS), as applicable in the European Union, and the supplementary rules in Section 315a (1) of the German Commercial Code (HGB).
All the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) which are applicable for the current fiscal year are likewise applied.
To improve the clarity of presentation, various items in the income statement and the balance sheet have been combined. These items are shown and explained separately in the Notes.
The Group’s functional currency is the euro. All amounts are shown in millions of euros (€ million) unless otherwise stated.
The consolidated financial statements, the Group management report, and any other documents subject to disclosure requirements are submitted to the publisher of the online German Federal Bulletin. Wacker Chemie AG is registered at Munich Local Court (Amtsgericht) under HRB 159705. The consolidated financial statements and the Group management report can also be viewed on the WACKER website. www.wacker.com
The declaration concerning the German Corporate Governance Code required by § 161 of the German Stock Corporation Act (AktG) has been submitted and made accessible to the shareholders on the WACKER website. www.wacker.com
The Executive Board of Wacker Chemie AG authorized the consolidated financial statements for issue and submitted them for presentation to the Supervisory Board’s Audit Committee on February 20, 2009. They will be submitted to the Supervisory Board for its meeting on March 12, 2009.
Standards/Interpretations Not Applied Earlier
The International Accounting Standards Board (IASB) has published the following standards, interpretations, and changes to existing standards which are not yet binding and which Wacker Chemie AG will not apply earlier than required.
Standards/Interpretations and Changes to Existing Standards Already Endorsed by the European Union
IFRS 1: “First-time Adoption of the International Financial Reporting Standards” and
IAS 27: “Consolidated and Separate Financial Statements”: Cost of an Investment in a Subsidiary, Jointly Controlled Entity are Associate
In May 2008, the IASB adopted a change in both of the above standards which must be applied for the first time in the fiscal year which begins on or after January 1, 2009. The change was endorsed by the European Union on January 23, 2009. We are assuming that these standards’ application will have no impact on Wacker Chemie AG’s consolidated financial statements.
IFRS 2: “Share-based Payment”
The IASB amended IFRS 2 in January 2008. The first mandatory application of this amended standard is for fiscal years beginning on or after January 1, 2009. The change was endorsed by the European Union on December 16, 2008. We are assuming that its application will have no impact on Wacker Chemie AG’s consolidated financial statements.
IFRS 8: “Operating Segments”
The first mandatory application of this amended standard is for fiscal years beginning on or after January 1, 2009. Earlier application is possible. The standard was endorsed by the European Union on November 21, 2007. Wacker Chemie AG will apply them for the first time in the fiscal year 2009. This is expected to have little impact on Wacker Chemie AG’s consolidated financial statements.
IAS 23: “Borrowing Costs”
The first mandatory application of this amended standard is for fiscal years beginning on or after January 1, 2009. The changes were endorsed by the European Union on December 10, 2008. As a result of the revised standard, borrowing costs related to certain investment projects will no longer expensed as incurred. Instead, they will be capitalized as part of acquisition and production costs. The changes will therefore tend to lead to higher asset additions and, consequently, an increase in depreciation. Apart from that, lower interest expenses can be expected. The impact of these amendments cannot be estimated a priori.
IAS 32: “Financial Instruments: Presentation” and IAS 1: “Presentation of Financial Statements”: Puttable Financial Instruments and Obligations Arising on Liquidation
The IASB adopted changes to IAS 1 and IAS 32 in February 2008. The changes must be applied for the first time in the fiscal year which begins on or after January 1, 2009. They were endorsed by the European Union on January 21, 2009. As things stand at present, the application of the changed standards will have no impact on Wacker Chemie AG’s consolidated financial statements.
“Improvements to IFRS”
In May 2008, the IASB adopted a series of changes to existing standards which were all publicized together. Most of the changes must be applied in the fiscal year which begins on or after January 1, 2009 and some in the fiscal year which begins on or after July 1, 2009. They were endorsed by the European Union on January 23, 2009. Their first-time application will have little or no impact on Wacker Chemie AG’s consolidated financial statements.
IFRIC 13: “Customer Loyalty Programmes”
The interpretation is to be used for the first time in the fiscal year beginning on or after July 1, 2008. The changes were endorsed by the European Union on December 16, 2008. We are assuming that its application will have no impact on Wacker Chemie AG’s consolidated financial statements.
Standards, Interpretations, and Changes to Existing Standards Not Yet Endorsed by the European Union
IFRS 1: “First-time Adoption of the International Financial Reporting Standards”
In November 2008, the IASB adopted changes to IFRS 1. The changes to this standard must be applied for the first time in the fiscal year which begins on or after July 1, 2009. The changed standard has not yet been endorsed by the European Union. Its application will have no impact on Wacker Chemie AG’s consolidated financial statements.
IFRS 3: “Business Combinations”
The IASB amended IFRS 3 in January 2008 as a consequence of the “Business Combinations – Phase II” project. The first mandatory application of this amended standard is for fiscal years beginning on or after July 1, 2009. The changed standard has not yet been endorsed by the European Union. In the event of future company acquisitions, the application of this standard could produce results different from those that would have been obtained under previous IFRS rules. This is most likely to be the case when not all of a company’s shares are acquired.
IAS 27: “Consolidated and Separate Financial Statements”
The first mandatory application of this amended standard is for fiscal years beginning on or after July 1, 2009. The changes have not yet been endorsed by the European Union. The revised standard will have to be observed in the course of future company acquisitions and will therefore have an impact on Wacker Chemie AG’s consolidated financial statements. Particular constellations have not yet been covered by IAS 27, especially with regard to gradual company acquisitions. The extent to which these changes will make us change our accounting methods cannot yet be assessed due to a lack of relevant data.
IAS 39: “Financial Instruments: Recognition and Measurement – Eligible Hedged Items”
In July 2008, the IASB adopted changes to IAS 39 which must be applied for the first time in the fiscal year that begins on or after July 1, 2009. These have not yet been endorsed by the European Union. The revised standard contains additions to the application guidelines in respect of particular aspects of hedge accounting. At the moment, we are not assuming that its application will have any impact on Wacker Chemie AG’s consolidated financial statements.
IAS 39: “Financial Instruments: Recognition and Measurement” and IFRS 7: “Financial Instruments: Disclosures”
In October 2008, the IASB adopted changes to the two standards specified above which must be applied retroactively as from July 1. Then, in November 2008, there followed the publication of an additional change to these two standards which affects the application and transition guidelines. The changes have not yet been endorsed by the European Union. Due to a lack of relevant data, we do not expect the application of the revised standard to have any impact on Wacker Chemie AG’s consolidated financial statements.
IFRIC 12: “Service Concession Arrangements“
The first mandatory application of this interpretation is in the fiscal year beginning on or after January 1, 2008. It has not yet been endorsed by the European Union. We are assuming that its application will have no impact on Wacker Chemie AG’s consolidated financial statements.
IFRIC 15: “Agreements for the Construction of Real Estate“
The first mandatory application of this interpretation is in the fiscal year beginning on or after January 1, 2009. It has not yet been endorsed by the European Union. We are assuming that its application will have no impact on Wacker Chemie AG’s consolidated financial statements.
IFRIC 16: “Hedges of a Net Investment in a Foreign Operation“
The first mandatory application of this interpretation is in the fiscal year beginning on or after October 1, 2008. It has not yet been endorsed by the European Union. We are assuming that its application will have no material impact on Wacker Chemie AG’s consolidated financial statements.
IFRIC 17: “Distribution of Non-cash Assets to Owners“
This interpretation must be applied for the first time in the fiscal year that begins on or after July 1, 2009. It has not yet been endorsed by the European Union. We are assuming that its application will have no material impact on Wacker Chemie AG’s consolidated financial statements.
IFRIC 18: “Transfer of Assets from Customer“
This interpretation must be applied for the first time in the fiscal year that begins on or after July 1, 2009. It has not yet been endorsed by the European Union. We are assuming that its application will have no material impact on Wacker Chemie AG’s consolidated financial statements.