Accounting principles and methods applied in preparation of the consolidated financial statements

General information

The consolidated financial statements of Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
as of December 31, 2011 have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and in complianceActing in conformity with applicable regulations; adherence to laws, rules, regulations and in-house or corporate codes of conduct.
with Section 315a of the German Commercial Code [HGB].

The individual financial statements of the companies included in the consolidation are drawn up on the same accounting, date December 31, 2011, as that of Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
.

Members of the KPMG organization or other independent firms of auditors instructed accordingly have audited the financial statements of the material companies included in the consolidation. Having prepared the consolidated financial statements, on January 27, 2012, the Management Board of Henkel Management AG – which is the Personally Liable Partner of Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
– approved the release of same to the Supervisory Board. The Supervisory Board is responsible for reviewing the consolidated financial statements and declaring whether it approves them.

The consolidated financial statements are based on the principle of historical cost with the exception that certain financial instruments are accounted for at their fair values. The Group currency is the euro. Unless otherwise indicated, all amounts are shown in million euros. In order to improve the clarity and informative value of the consolidated financial statements, certain items are combined in the consolidated statement of financial position, the consolidated statement of income and the consolidated statement of comprehensive income, and then shown separately in the Notes.

Scope of consolidation

In addition to Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
as the ultimate parent company, the consolidated financial statements at December 31, 2011 include seven German and 170 non-German companies in which Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
has a dominating influence over financial and operating policy, based on the concept of control. This is generally the case where Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
holds, directly or indirectly, a majority of the voting rights. Companies in which not more than half of the voting rights are held, are fully consolidated if Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
, on the basis of contractual agreements or rights held, has the power, directly or indirectly, to appoint executive and managerial bodies and thereby to govern their financial and operating policies.

Compared to December 31, 2010, four new companies have been included in the scope of consolidationThe scope of consolidation is the aggregate of companies incorporated in the onsolidated financial statements.
and eleven companies have left the scope of consolidationThe scope of consolidation is the aggregate of companies incorporated in the onsolidated financial statements.
. Seven mergers also took place. The changes in the scope of consolidationThe scope of consolidation is the aggregate of companies incorporated in the onsolidated financial statements.
have not had any material effect on the main items of the consolidated financial statements.

Acquisitions and divestments

The acquisitions and divestments made in fiscal 2011 had no material effect on the business and organizational structure of Henkel, nor on our net assets, financial position or results of operations.

Acquisitions

Effective January 1, 2011, we assumed control of Schwarzkopf Inc., Culver City, California, USA. We own 100 percent of the voting rights of the company. Having a direct presence in the US hair salon segment enables us to better exhaust the potential of this market. The purchase price paid was 42 million euros. GoodwillAmount by which the total consideration for a company or a business exceeds the netted sum of the fair values of the individual, identifiable assets and liabilities.
in the amount of 41 million euros was recognized. It is assumed that the capitalized goodwillAmount by which the total consideration for a company or a business exceeds the netted sum of the fair values of the individual, identifiable assets and liabilities.
is completely tax-deductible. Cash acquired in the amount of 1 million euros is shown in the consolidated statement of cash flowsInflows and outflows of cash and cash equivalents divided within the statement of cash flows into cash flows from ordinary activities, from investing and acquisition activities, and from financing activities.
under payments for acquisitions. Customer and supplier relationships were capitalized in the amount of 3 million euros. The fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
applied to the acquired trade accounts receivable is 6 million euros.

As from April 1, 2011, we now include Purbond Group, Hatfield, UK, which was previously recognized at equity, as a fully consolidated entity in our consolidated financial statements. Our share of the voting rights is 100 percent. The purchase price paid amounted to 4 million euros. Fifty percent of the shares had already been acquired as of April 3, 2008. Taking into account the provisions of IFRS 3 pertaining to business combinations achieved in stages (step acquisition) and the corresponding revaluation of previously held shares at fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
, there ensued a positive contribution to earnings amounting to 2.5 million euros recognized under other operating income.

In the second half of 2011, we spent 3 million euros acquiring outstanding non-controlling interestsProportion of equity attributable to third parties in subsidiaries included within the scope of consolidation. Previously termed “minority interests.” Valued on a proportional net asset basis. A pro-rata portion of the net earnings of a corporation is due to shareholders owning non-controlling interests.
in Rilken Cosmetics Industry S.A., Athens, Greece. Effective December 31, 2011, we increased our shareholding from 50 percent to 78 percent with the purpose of acquiring 100 percent of the shares in the future. The difference between the previously held share of net assets and the purchase price was recognized in retained earnings.

The goodwillAmount by which the total consideration for a company or a business exceeds the netted sum of the fair values of the individual, identifiable assets and liabilities.
recognized in the year under review essentially represents the market position and profitability of the acquired businesses, together with expected synergies.

The purchase price allocation procedure for all acquisitions was completed as of December 31, 2011.

The following table shows the acquisitions made in fiscal 2011. The acquisitions indicated, taken both individually and in sum, did not exert any material effect on the net assets, financial position or results of operations of the Group.

Acquisitions
     
January 1 to December 31
in million euros
Carrying amount Adjustments Fair value
Assets 14 3 17
Non-current assets 1 2 3
Current assets 12 1 13
Cash and cash equivalents 1 1
Liabilities 13 2 15
Non-current liabilities and provisions 6 6
Current liabilities and provisions 7 2 9
Net assets 1 1 2

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Goodwill 2011
 
in million eurosFair value
Purchase price46
Fair value of non-controlling interests3
Less net assets2
Goodwill47

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Divestments

At the end of January 2011, we disposed of our non-core TAED bleach activator business in Ireland for 4 million euros.

On May 31, 2011, we sold our shares in Henkel India Ltd., Chennai, India. The sale proceeds amounted to 29 million euros while the gain totaled 48 million euros. In the course of the divestmentDisposal, sale or divestiture of an asset, operation or business unit.
, bank liabilities amounting to 66 million euros were discharged.

Effective June 30, 2011, we sold our roofing membrane business under the Wolfin brand operated by the Adhesive Technologies business sector. The proceeds of the sale amounted to 13 million euros with a gain of 9 million euros.

On December 9, 2011, we also disposed of our non-core corrosion-protection business in the USA operated by the Adhesive Technologies business sector. The proceeds of the sale were 8 million euros, resulting in a gain of 4 million euros.

On December 15, 2011, we sold our 51 percent share in the joint venture Cemedine Henkel Co. Ltd., Tokyo, Japan, generating proceeds of 6 million euros and a gain of 1 million euros.

The proceeds from the divestments indicated were received in cash. The gains were recognized under other operating income.

The following table shows the disposal and deconsolidation effects from entity sales in 2011 and from the divestmentDisposal, sale or divestiture of an asset, operation or business unit.
in 2011 of operations that no longer form part of our core business.

Divestments and deconsolidation effects
January 1 to December 31
in million euros
Henkel India Ltd. Other entities Other operations Total
Disposal effects        
Non-current assets 4 6 2 12
Current assets 16 10 6 32
Assets held for sale 4 4
Cash and cash equivalents 4 4
Non-current liabilities and provisions 1 2 3
Current liabilities and provisions 69 9 78
Net assets – 49 14 6 – 29
         
Share of net assets owned by shareholders of Henkel AG & Co. KGaA – 19 10 6 – 3
Total consideration 29 10 21 60
Incidental costs of disposal – 3 –2 – 5
Accumulated currency translation gains 3 1 4
Deconsolidation gain (+) / loss (–) 48 1 13 62

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Consolidation methods

The annual financial statements of Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
and of the subsidiaries included in the consolidated financial statements were prepared on the basis of uniformly valid principles of recognition and measurement, applying the standardized year-end date adopted by the Group.

Such entities are included in the consolidated financial statements as of the date on which the Group acquired control.

All receivables and liabilities, sales, income and expenses, as well as intra-group profits on transfers of non-current assets or inventories, are eliminated on consolidation. Intra-group transactions are effected on the basis of market or transfer prices.

The purchase method is used for capital consolidation. With business combinations, therefore, all hidden reserves and hidden charges in the entity acquired are fully reflected at fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
and all identifiable intangible assets are separately disclosed. Any difference arising between the cost of acquisition and the (share of) net assets is recognized as goodwillAmount by which the total consideration for a company or a business exceeds the netted sum of the fair values of the individual, identifiable assets and liabilities.
. Entities acquired are included in the consolidation for the first time as subsidiaries by offsetting the carrying amount of the Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
investment in them against their assets and liabilities. Contingent consideration is recognized at fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
as of the date of first-time consolidation. (Incidental) costs related to the acquisition of subsidiaries are not included in the valuation of those shares. Instead, they are recognized in other operating expenses in the period in which they occur. In the recognition of acquisitions of less than 100 percent, minority interests are measured at the fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
of the share of net assets that they represent. We do not apply the option of measuring minority interests at their fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
(full goodwillAmount by which the total consideration for a company or a business exceeds the netted sum of the fair values of the individual, identifiable assets and liabilities.
method).

In subsequent years, the carrying amount of the Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
investment is eliminated against the current equity of the subsidiary entities concerned.

Changes in the shareholdings of subsidiary companies, as a result of which the participating interests of the Group decrease or increase without loss of control, are recognized within equity as changes in ownership without loss of control. 

As soon as the control of a subsidiary is relinquished, all the assets and liabilities and the non-controlling interestsProportion of equity attributable to third parties in subsidiaries included within the scope of consolidation. Previously termed “minority interests.” Valued on a proportional net asset basis. A pro-rata portion of the net earnings of a corporation is due to shareholders owning non-controlling interests.
, and also the accumulated currency translation gains or losses, are derecognized. In the event that Henkel continues to own non-controlling interestsProportion of equity attributable to third parties in subsidiaries included within the scope of consolidation. Previously termed “minority interests.” Valued on a proportional net asset basis. A pro-rata portion of the net earnings of a corporation is due to shareholders owning non-controlling interests.
in the non-consolidated entity, these are measured at fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
. The result of deconsolidation is recognized under other operating income or charges.

Currency translation

The annual financial statements of the consolidated companies, including the hidden reserves and hidden charges of Group companies recognized under the purchase method, and also goodwillAmount by which the total consideration for a company or a business exceeds the netted sum of the fair values of the individual, identifiable assets and liabilities.
arising on consolidation, are translated into euros using the functional currency method outlined in International Accounting Standard (IAS) 21 “The Effects of Changes in Foreign Exchange Rates.” The functional currency is the currency in which the foreign company predominantly generates funds and makes payments. As the functional currency for all the companies included in the consolidation is the local currency of the company concerned, assets and liabilities are translated at closing rates, while income and expenses are translated at the average rates for the year, based on an approximation of the actual rates at the date of the transaction. The differences arising from using average rather than closing rates are taken to equity and shown as other components of equity or non-controlling interestsProportion of equity attributable to third parties in subsidiaries included within the scope of consolidation. Previously termed “minority interests.” Valued on a proportional net asset basis. A pro-rata portion of the net earnings of a corporation is due to shareholders owning non-controlling interests.
, and remain neutral in respect of net income until the shares are divested.

Financial assets and liabilities in foreign currencies are measured at closing rates and recognized in profit or loss. For the main currencies in the Group, the following exchange rates have been used based on 1 euro:

Currency
    Average exchange rate Closing exchange
rate Dec. 31
  ISO code 2010 2011 2010 2011
Chinese yuan CNY 8.98 8.99 8.82 8.16
Mexican peso MXN 16.75 17.31 16.55 18.05
Polish zloty PLN 4.00 4.13 3.98 4.46
Russian ruble RUB 40.26 40.91 40.82 41.77
US dollar USD 1.33 1.39 1.34 1.29

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Recognition and measurement methods

Summary of selected measurement methods
Items in the consolidated statement of financial position Measurement method
Assets  
Goodwill Lower of carrying amount and recoverable amount ("impairment only" method)
Other intangible assets  
    with indefinite useful lives Lower of carrying amount and recoverable amount ("impairment only" method)
    with definite useful lives (Amortized) cost less any impairment losses
Property, plant and equipment (Amortized) cost less any impairment losses
Financial assets (categories per
IAS 39)
 
     "Loans and receivables" (Amortized) cost using the effective interest method
     "Available for sale"

Fair value with gains or losses recognized directly in equity

     "Held for trading"

Fair value through profit or loss
Other assets (Amortized) cost
Inventories Lower of cost and net realizable value
Assets held for sale Lower of cost and fair value less costs to sell
1
Apart from permanent impairment losses and effects arising from measurement in a foreign currency.


Liabilities  
Provisions for pensions and similar obligations Present value of future obligations ("projected unit credit" method)
Other provisions Settlement amount
Financial liabilities (categories per
IAS 39)
 
     "Measured at amortized cost" (Amortized) cost using the effective interest method
     "Held for trading" Fair value through profit or loss
Other liabilities Settlement amount

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The methods of recognition and measurement are described in detail in the Notes relating to the individual items of the statement of financial position on these pages. Also provided as part of the report on our financial instruments (Note 21) are the disclosures relevant to IFRS 7 showing the breakdown of our financial instruments by category, our methods for fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
measurement, and the derivativeFinancial instrument, the value of which changes in response to changes in an underlying asset or an index, which will be settled at a future date and which initially requires only a small or no investment.
financial instruments that we use.

Changes in the methods of recognition and measurement arising from revised and new standards are applied retrospectively, provided that there are no alternative regulations that supersede the standard concerned. The consolidated statement of income from the previous year and the opening balance of the consolidated statement of financial position for this comparative period are adjusted as if the new methods of recognition and measurement had always been applied.

In order to standardize the disclosure of financial instruments in accordance with IFRS 7 and IAS 39, we disclosed the assets from overfunding of pension obligations falling under IAS 19 (previous year: 15 million euros) and the reimbursement rights relating to employee benefits (previous year: 90 million euros in non-current assets and 9 million euros in current assets) under other assets instead of in other financial assets. Since 2011, the liabilities to employees falling under IAS 19 have been recognized under other liabilities instead of other financial liabilities. We have adjusted the consolidated statement of financial position as of December 31, 2010. There were no effects on the consolidated statement of income or the consolidated statement of comprehensive income.

In addition, we reclassified portions of liabilities to employees in the USA resulting from deferred compensation to pension obligations (previous year: 50 million euros) in the 2011 fiscal year. In economic terms, and based on the analysis of the actual handling of the payments, these constitute post-employment benefits as defined in IAS 19. The reimbursement rights related to those pension obligations in the USA (previous year: 84 million euros) are therefore accounted for in accordance with the provisions of IAS 19 in the same way as the corresponding liabilities. Due to the change in this recognition method, we have appropriately adjusted the prior-year figures for pension obligations in the consolidated statement of financial position and also revised the prior-year Notes relating to pension obligations and other assets. The disclosures pertaining to the financial result have been expanded. There was no effect on the total amount of the income and expenses disclosed under financial result in the previous year, as the expected return from reimbursement rights corresponded to the actual return generated.

The reclassifications had the following effects on the relevant items of the consolidated statement of financial position dated December 31, 2010:

Reclassifications
in million eurosDecember 31, 2010
Non-current assets15
Other financial assets– 90
Other assets105
Current assets– 15
Other financial assets– 24
Other assets9
Non-current liabilities3
Pension obligations50
Other financial liabilities– 55
Other liabilities8
Current liabilities–3
Other financial liabilities– 28
Other liabilities25

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Accounting estimates, assumptions and discretionary judgments

Preparation of the consolidated financial statements is based on a number of accounting estimates and assumptions. These have an impact on the reported amounts of assets, liabilities and contingent liabilities at the reporting date and the disclosure of income and expenses for the reporting period. The actual amounts may differ from these estimates.

The accounting estimates and their underlying assumptions are continually reviewed. Changes in accounting estimates are recognized in the period in which the change takes place where such change exclusively affects that period. A change is recognized in the period in which it occurs and in later periods where such change affects both the reporting period and subsequent periods. The judgments of the Management Board regarding the application of those IFRSs which have a significant impact on the consolidated financial statements are presented in the explanatory notes on taxes on income (Note 30), intangible assets (Note 1), pension obligations (Note 15), financial instruments (Note 21) and share-based payment plans (Note 32).

Essentially, discretionary judgments are made in respect of the following two areas:

  • The US dollar liabilities of Henkel of America, Inc. are set off against sureties of Henkel AG & Co. KGaAAbbreviation for “Kommanditgesellschaft auf Aktien.” A KGaA is a company with a legal identity (legal entity) in which at least one partner has unlimited liability with respect to the company’s creditors (personally liable partner), while the liability for such debts of the other partners participating in the share-based capital stock is limited to their share capital (limited shareholders).
    . As the deposit and the loan are with the same lender and of the same maturity, there is a legal right to set off these sums and the Group intends to settle net.

  • The demarcation of the cash-generating units is also a discretionary judgment of the Group management and is explained under Note 1.

New international accounting regulations according to International Financial Reporting Standards (IFRS)

Accounting regulations applied for the first time in the year under review

Application of the following standards, amendments and interpretations has been mandatory since January 1, 2011:

Accounting regulations applied for the first time in the year under review
 Significance
Collective standard: “Improvements to IFRS 2010”Minor
IAS 24 (Rev. 2009) “Related Party Disclosures”Irrelevant
IAS 32 “Classification of Rights Issues” (Amendment)Irrelevant
IFRIC 14 “Prepayments of a Minimum Funding Requirement” (Amendment)Irrelevant
IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments”Irrelevant

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  • In May 2010, the International Accounting Standards Board (IASB) issued amendments of existing standards and interpretations as part of its annual improvement project. In addition to editorial revisions introduced to clarify existing regulations, amendments also relate to changes of individual standards affecting recognition, measurement or disclosure.

  • In November 2009, the IASB published a revision of IAS 24 “Related Party Disclosures.” The revised standard clarifies the definition of a related party and simplifies the disclosure requirement for government-related entities.

  • In October 2009, the IASB published amendments to International Accounting Standard (IAS) 32 “Financial Instruments: Presentation.” The amendments stipulate the accounting at the issuer of pre-emptive rights, options and warrants issued to acquire a fixed number of equity instruments that are denominated in a currency other than that of the issuer. Such cases were hitherto reported as derivativeFinancial instrument, the value of which changes in response to changes in an underlying asset or an index, which will be settled at a future date and which initially requires only a small or no investment.
    liabilities. Pre-emptive rights that are issued pro rata at a fixed currency amount to the existing shareholders of a company are in future to be classified as equity. The currency in which the exercise price is stated is irrelevant.

  • International Financial Reporting Interpretations Committee (IFRIC) 14 “IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction” deals with the accounting treatment of voluntary prepaid contributions made by a company in order to meet existing minimum funding requirements. The amendment allows a company to recognize the benefit arising from such a prepayment as an asset.

  • IFRIC 19 “Extinguishing Financial Liabilities with Equity Instruments” states in particular that if a debtor issues equity instruments to a creditor to extinguish all or part of a financial liability, those equity instruments are “consideration paid” in accordance with IAS 39.41. The debtor should measure the equity instruments issued to the creditor at fair valueAmount at which an asset or a liability might be exchanged or a debt paid in an arm’s length transaction between knowledgeable, willing parties.
    . The debtor recognizes in profit or loss the difference between the carrying amount of the financial liability extinguished and the initial measurement of the equity instruments issued.

The first-time application of the revised and amended standards and interpretations had no material impact on the presentation of our financial statements.

Accounting regulations not applied in advance of their effective date

The following interpretations and amendments to existing standards of possible relevance to Henkel, which have been adopted into EU law (endorsement mechanism) but are not yet mandatory, have not yet been applied:

Accounting regulations not applied in advance of their effective date

Mandatory for fiscal years beginning on or after

IFRS 7 “Disclosures Relating to the Transfer of Financial Assets and Liabilities” (Amendment)

July 1, 2011


  • In October 2010, the IASB published an amendment to IFRS 7 “Financial Instruments: Disclosure.” The purpose of the extended disclosure requirements is to provide financial statement users with a better understanding of the relationship between the transferred financial assets and the corresponding liabilities. Particularly where financial assets are completely derecognized, the additional information now required should enable an assessment of the type and the risks of any continuing involvement. The amendment is applicable for financial years beginning on or after July 1, 2011, with earlier application permitted.

This amendment of IFRS 7 will not be applied by Henkel until fiscal 2012. We do not expect application to have any material impact on the presentation of our financial statements.

Accounting regulations not yet adopted into EU law

In fiscal 2011, the IASB issued the following standards or interpretations of and amendments to standards of relevance to Henkel which still have to be adopted into EU law (endorsement mechanism) before they become applicable:

Accounting regulations not yet adopted into EU law
  Mandatory for fiscal years beginning or after
IAS 1 "Presentation of Items of Other Comprehensive Income" (Amendment) July 1, 2012
IAS 19 (Rev. 2011) "Employee Benefits" January 1, 2013
IAS 28 "Investments in Associates and Joint Ventures" (Amendment) January 1, 2013
IAS 32 "Offsetting Financial Assets and Liabilities" (Amendment) January 1, 2014
IFRS 7 "Disclosures – Offsetting Financial Assets and Liabilities" (Amendment) January 1, 2013
IFRS 9 "Financial Instruments" January 1, 2015
IFRS 10 "Consolidated Financial Statements" January 1, 2013
IFRS 11 "Joint Arrangements" January 1, 2013
IFRS 12 "Disclosure of Interests in Other Entities" January 1, 2013
IFRS 13 "Fair Value Measurement" January 1, 2013

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These amendments and standards will be applied by Henkel from fiscal 2012 or later. We expect the future application of the aforementioned regulations not to have a significant impact on the presentation of the financial statements.