Amendments to IAS 1

Presentation of Items of Other Comprehensive Income

July 1, 2012

June 5, 2012

The application of the revised standard will have no impact on WACKER’s earnings, net assets or financial position. The presentation of items of other comprehensive income in WACKER’s financial statements has been enhanced.

IAS 19 (revised 2011)

Employee Benefits

Jan. 1, 2013

June 5, 2012

The amendments to IAS 19 affect the recognition and measurement of the expense for defined benefit pension plans and termination benefits. They also result in broader disclosure requirements with respect to employee benefits. The option of accounting for actuarial gains and losses using the corridor method has been eliminated. From now on, these impacts will be recognized immediately in “other comprehensive income.” Additionally, the return on plan assets will no longer be recognized on the basis of the expected interest rate, but the discount rate. The recognition of variations in actuarial gains and losses under other comprehensive income leads to more volatility in equity. The effects from adoption of the revised standard as of January 1, 2013, and for the comparable year are illustrated in the Notes.

IFRS 13

Fair Value Measurement

Jan. 1, 2013

Dec. 11, 2012

IFRS 13 describes how fair value is to be measured and extends the disclosures on fair value. It defines fair value as the exit price, i.e. the price that would be received to sell an asset or paid to transfer a liability. In compliance with the transition guidelines of IFRS 13, WACKER applied the new regulations on fair value measurement prospectively and did not disclose any prior-year or comparative information for new disclosures. Irrespective of this, the amendment had no substantial impact on the measurement of WACKER’s assets and liabilities. Application of the new standard had no substantial impact on WACKER’s earnings, net assets or financial position. The disclosure obligations in the consolidated financial statements have increased.

IFRIC 20

Stripping Costs in the Production Phase of a Surface Mine

Jan. 1, 2013

Dec. 11, 2012

IFRIC 20 governs the accounting treatment of the cost of removing waste from a surface mine. In the absence of relevant circumstances, the interpretation has no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Amendments to IFRS 7

Offsetting Financial Assets and Financial Liabilities

Jan. 1, 2013

Dec. 13, 2012

These amendments to IFRS 7 extend the disclosure requirements regarding the netting of financial assets and financial liabilities. The added disclosure requirements have an impact on the presentation of the financial statements.

Amendments to IFRS 1 for First-time Adopters

Government Loans

Jan. 1, 2013

March 4, 2013

In terms of the accounting of government loans, this change provides first-time IFRS adopters with the same relief as existing users. Its application has no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Improvements to IFRS (2009–2011)

Jan. 1, 2013

March 27, 2013

The amendments affect IFRS 1, IAS 1, IAS 16, IAS 32 and IAS 34; only the IAS 16 amendments have a minor impact on WACKER’s earnings, net assets and financial position.

Amendments to IFRS 1 for First-time Adopters

Severe Hyper-Inflation and Removal of Fixed Dates

Jan. 1, 2013

Dec. 11, 2012

The amendment replaces the existing references to the date of January 1, 2004, with a reference to the timing of the transition to IFRS. This amendment also includes rules for those cases in which hyperinflation makes it impossible for an entity to comply with all IFRS stipulations. Its application has no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Amendments to IAS 12

Deferred Tax: Recovery of Underlying Assets

Jan. 1, 2013

Dec. 11, 2012

The amendment contains a partial clarification of the treatment of temporary taxable differences from IAS 40’s fair value model. In the case of investment property, it is often difficult to assess whether existing differences are recovered as part of continuing use or in the wake of a sale. The amendment therefore generally makes it necessary to presume recovery due to a sale. Its application has no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements. WACKER measures its investment property exclusively at amortized cost.

IFRS 10

Consolidated Financial Statements

Jan. 1, 2014

Dec. 11, 2012

IFRS 10 changes the definition of “control” so that the same criteria are applied to all companies in determining control. The standard replaces the consolidation guidelines in the previous IAS 27 and SIC 12. The new rules may lead to major changes in the scope of consolidation compared with the previous determination of the Group pursuant to IAS 27. At this point in time, WACKER is of the opinion that application of the revised standard will have no influence on the current determination of the scope of consolidation.

IFRS 11

Joint Arrangements

Jan. 1, 2014

Dec. 11, 2012

IFRS 11 governs the accounting of arrangements where a company exercises joint control over a joint venture or a joint operation. The standard replaces IAS 31. In the future, joint ventures will be accounted for using the equity method only. The option of proportionate consolidation has been abolished. This has no impact on WACKER’s earnings, net assets or financial position because WACKER already accounts for joint ventures using the equity method. WACKER has examined the other effects of IFRS 11, also with respect to joint operations. The analysis did not result in any reassessment of the joint ventures accounted for up to now using the equity method.

IFRS 12

Disclosure of Interests in Other Entities

Jan. 1, 2014

Dec. 11, 2012

IFRS 12 regulates the disclosures in the consolidated financial statements that enable readers of the financial statements to assess the nature, risk and financial effects of the entity’s involvement in subsidiaries, associates, joint arrangements and unconsolidated structured entities. Application of the revised standard will lead to a substantial broadening of the disclosures in WACKER’s consolidated financial statements.

Amendments to IAS 27

Separate Financial Statements

Jan. 1, 2014

Dec. 11, 2012

In the future, IAS 27 will deal only with separate financial statements. The existing guidelines for separate financial statements remain unchanged. Application of the revised standard will have no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Amendments to IAS 28

Investments in Associates and Joint Ventures

Jan. 1, 2014

Dec. 11, 2012

IAS 28 now also governs the accounting of joint ventures using the equity method. Application of the revised standard will have no substantial impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Amendments to IFRS 10, IFRS 11 and IFRS 12

Transition Guidelines

Jan. 1, 2014

April 4, 2013

The purpose of the amendments is to clarify the transition guidelines in IFRS 10 and facilitate the transition to IFRS 10, IFRS 11 and IFRS 12. Application of the changes will have no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Amendments to IFRS 10, IFRS 12 and IAS 27

Investment Entity

Jan. 1, 2014

Nov. 20, 2013

The changes focus primarily on redefinition of the term “investment entity.” In addition, investment entities are exempted from the obligation to consolidate majority-controlled subsidiaries in their consolidated financial statements. The amendments have no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Amendments to IAS 32

Offsetting Financial Assets and Financial Liabilities

Jan. 1, 2014

Dec. 13, 2012

This amendment to IAS 32 clarifies the requirements for offsetting of financial instruments. Application of the revised standard will have no substantial impact on WACKER’s earnings, net assets or financial position.

Amendments to IAS 36

Impairment of Assets – Disclosure of the Recoverable Amount of Non-Financial Assets

Jan. 1, 2014

Dec. 19, 2013

IFRS 13 “Fair Value Measurement” introduced a new rule amending IAS 36 “Impairment of Assets.” It requires disclosure of the recoverable amount of every cash-generating unit (or group of cash-generating units) for which a substantial amount of goodwill or substantial intangible assets of indefinite useful life have been recognized. The amendments in connection with IAS 36 have no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements. WACKER does not currently recognize any goodwill or any intangible assets of indefinite useful life.

Amendments to IAS 39

Novation of Derivatives and Continuation of Hedge Accounting

Jan. 1, 2014

Dec. 19, 2013

Due to the EU regulation on OTC derivatives, central counterparties and trade repositories (also known as EMIR), clearing via a central counterparty is planned for standardized OTC derivatives. As per IAS 39 in its current version, the clearing obligation and the related novation to a central counterparty lead to termination of the hedging relationship under hedge accounting and thus to ineffectiveness compared to the prior hedging relationship. The amendment states that, under certain conditions, clearing via a central counterparty shall not lead to termination of the hedging relationship, and that the hedge shall continue to qualify for hedge accounting in accordance with IAS 39. The amendments in connection with IAS 39 have no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements since WACKER does not have any OTC derivatives that are subject to the clearing obligation.

IFRS 9

Financial Instruments

Nov. 12, 2009

–

Postponed

In the future, financial assets will be measured either at amortized cost or at fair value, depending on the business model of the company in question. At the moment, WACKER cannot conclusively assess what impacts the first-time application of this standard will have, should it be endorsed by the EU in its current form.

Amendments to IFRS 9 and IFRS 7

Mandatory Effective Date and Transition Disclosures

Dec. 16, 2011

–

Postponed

The amendments postpone the effective date of IFRS 9 and provide for additional disclosure requirements. As WACKER cannot yet assess what impact the first-time application of the standard will have, it is also not yet possible to evaluate the potential impact of these amendments to IFRS 9 and IFRS 7.

IFRS 9 – Hedge Accounting and Amendments to IFRS 9, IFRS 7 and IAS 39

Nov. 19, 2013

–

Postponed

The amendments concern clarifications of the existing regulations as well as new regulations for the hedge accounting model. The goal of the new hedge accounting model under IFRS 9 is to better reflect risk management activities in the financial statements. Cash flow hedge accounting, fair value hedge accounting and hedging of a net investment in a foreign operation remain admissible hedging relationships. In each case, the number of qualifying underlying and hedging transactions was extended. As WACKER cannot yet assess what impact the first-time application of the standard will have, it is also not yet possible to evaluate the potential impact of these amendments to IFRS 9, IFRS 7 and IAS 39.

Amendments to IAS 19

Defined Benefit Plans: Employee Contributions

Nov. 21, 2013

July 1, 2014

Expected in Q3 2014

The amendments clarify those regulations that concern the allocation of contributions by employees or third parties to service periods in cases where the contributions are linked to the same period of service. In addition, relief is granted in cases where the contributions are independent of the number of years of service. The amendments have no impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

IFRIC 21

Levies

May 20, 2013

Jan. 1, 2014

Expected in Q2 2014

IFRIC 21 “Levies” contains rules for the recognition of obligations to pay public levies that are not defined as taxes within the meaning of IAS 12 “Income Taxes.” Application of this interpretation may result in an obligation to pay a levy being recognized in the accounts at a different point in time than previously, especially if the obligation to pay arises only if certain circumstances occur at a certain time. The amendments in connection with IFRIC 21 are unlikely to have any impact on WACKER’s earnings, net assets or financial position, or on the presentation of its financial statements.

Improvements to IFRS (2010–2012)

Dec. 12, 2013

July 1, 2014

Expected in Q3 2014

The amendments affect IFRS 2, IFRS 3, IFRS 8, IFRS 13, IAS 16, IAS 24 and IAS 38. Their application has no substantial impact on WACKER’s earnings, net assets or financial position.

Improvements to IFRS (2011-2013)

Dec. 12, 2013

July 1, 2014

Expected in Q3 2014

The amendments affect IFRS 1, IFRS 3, IFRS 13 and IAS 40. Their application has no substantial impact on WACKER’s earnings, net assets or financial position.