Merck KGaA is a Germany-based company, operating in the pharmaceutical and chemical business sectors. We provide an excerpt from the consolidated balance sheet.
Consolidated balance sheet (excerpt)

Note 24 in the 2011 consolidated annual report €“ prepared under IFRS €“ pertains to Property, plant and equipment. It states the following:

Required
1 Reconcile the balance sheet figures and the statement of Note 24.
2 Double-check (reconcile) the amount of €˜Net carrying amount as of 31 December 2011€™ between the various tables.
3 Double-check (reconcile) the amount of €˜Net carrying amount as of 31 December 2010€™ between the various tables.
4 In the line €˜Changes in scope of consolidation€™, are the figures always positive?
5 Explain why there is no line €˜Additions€™ in the section €˜Accumulated depreciation and impairment losses€™.
6 Explain and provide an illustration of what happens in the line €˜Transfers€™ (at acquisition cost).
7 Explain why, in the line €˜Disposals€™ (depreciation), the signs are positive. NB. Although the topic of business combinations (see Chapter 13) has not yet been developed, we can deduce that the column €˜Changes in scope of consolidation€™ represents the impact of acquisitions and sales of companies. The line €˜Currency translation€™ is related to the translation of financial statements of the various subsidiaries originally established in their local currencies.

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million Non-current assets Note 2011 2010 Property, plant and equipment (24) 3,113.4 3,241.5 Construction in progress and to vendors and milliorn Land, land rights Plant and Other Total and buildings, machinery facilities, including buildings on third-party land operating advance payments and office equipment contractors 244.9 Net carrying amount as of December 31,2010 Acquisition cost January 1,2011 Currency translation Changes in scope of consolidation Additions Disposals Transfers December 31, 2011 Accumulated depreciation and impairment losses January 1, 2011 Currency translation Changes in scope of consolidation Depreciation and impairment losses Disposals Transfers Write-ups December 31, 2011 Net carrying amount as of December 31, 2011 1,449.4 778.4 768.8 3,241.5 2663.9 3.7 2,321.9 27.3 0.6 32.7 -23.6 845.4 4 2.5 42.9 -27.7 48.7 915.2 600.5 7789 6,610.1 33.8 9.3 -0.6 2620 371.9 34.3 -41.2 159.4 2,825.2 -1,885.5 1.8-94.3 14.6 729.0 6,945.4 10.13,368.6 -310.6 2476.0 872.5 2.1 0.0 -175.0 37.0 -20.2 -2.6 0.0 85.9 26.3 -0.7 0.2 663.2 252.0 0.0 0.0 2.9 -96.2 14.8 3.4 0.8 -954.2 1,521.8 2.9 -165.-522.2 79.0 0.9 -0.1 2,040.2 785.0 2.4 174.43,832.0 5546 3,113.4