IFRS 10 (Consolidated Financial Statements) and IFRS 11 (Joint Arrangements).

IFRS 10 governs the definition of “control” so that the same criteria are to be applied to all companies in determining control. The standard defines control as being the ability to direct the relevant activities of an entity. This modified definition did not result in any changes to the scope of consolidation for WACKER.

IFRS 11 governs the accounting of joint arrangements. These are divided into joint operations and joint ventures. The assets, debts, income and expenses of the former are recognized on a pro rata basis, while joint ventures are accounted for using the equity method. In light of the different accounting methods applicable to joint operations and joint ventures, WACKER reviewed its entities currently accounted for as joint ventures as to whether these represent joint operations. Since all of these entities can generate their own cash flow, the analysis showed that none of them need to be accounted for a joint operation.