16 – Investments accounted for using the equity method and other financial assets

Investments accounted for using the equity method (in million €)

 

 

2014

2013

Balance as of January 1

 

4,174

3,502

Changes in scope of consolidation

 

16

Additions

 

40

103

Disposals

 

(781)

(6)

Transfers

 

(92)

709

Exchange differences

 

(87)

(134)

Balance as of December 31

 

3,270

4,174

Accumulated valuation allowances

 

(25)

Net carrying amount as of December 31

 

3,245

4,174

Other financial assets (in million €)

 

 

December 31, 2014

December 31, 2013

Other shareholdings

 

462

611

Long-term securities

 

78

32

Other financial assets

 

540

643

The first-time consolidation of BASF MPCC Company Limited, Guangdong Province, China, and BASF Markor Chemical Manufacturing (Xinjiang) Co. Ltd., Korla, China, as well as a capital increase in BASF Huntsman Shanghai Isocyanate Investment B.V., Arnheim, Netherlands, led to additions of €40 million. Disposals of €781 million primarily resulted from the sale of BASF’s share in Styrolution Holding GmbH to the INEOS Group. Transfers included the income of investments accounted for using the equity method and dividend distributions. Of the transfers in 2013, €631 million was attributable to the fair value measurement of GASCADE Gastransport GmbH, Kassel, Germany, which was accounted for using the equity method for the first time. At two investments accounted for using the equity method, the equity-accounted carrying amount was impaired by €25 million in 2014.

Divestitures of BASF’s 15% share in South Stream Transport B.V., Amsterdam, Netherlands, to Gazprom Germania GmbH, Frankfurt am Main, Germany, on December 29, 2014, and the 15.79% share in VNG – Verbundnetz Gas AG, Leipzig, Germany, to EWE Aktiengesellschaft, Oldenburg, Germany, on October 27, 2014, led to a decrease in other shareholdings. Furthermore, valuation allowances for other shareholdings of €14 million were made in 2014 (2013: €41 million).