32 – Related-party transactions

IAS 24 requires the disclosure of transactions with related parties.

A related party is a natural person or legal entity which can exert influence on the BASF Group or over which the BASF Group exercises control or joint control or a significant influence. In particular, this comprises nonconsolidated subsidiaries, joint ventures and associated companies.

The following tables show the volume of business with related parties that are included at amortized cost or accounted for using the equity method.

Sales to related parties (in million €)

 

 

2014

2013

Nonconsolidated subsidiaries

 

504

507

Joint ventures

 

577

609

Associated companies

 

1,991

3,217

Trade accounts receivable from / trade accounts payable to related parties (in million €)

 

 

Accounts receivable, trade

Accounts payable, trade

 

 

December
31, 2014

December
31, 2013

December
31, 2014

December
31, 2013

Nonconsolidated subsidiaries

 

141

154

62

70

Joint ventures

 

145

117

238

293

Associated companies

 

88

397

50

101

Other receivables and liabilities with related parties (in million €)

 

 

Other receivables

Other liabilities

 

 

December 31, 2014

December 31, 2013

December 31, 2014

December 31, 2013

Nonconsolidated subsidiaries

 

204

187

120

115

Joint ventures

 

160

66

86

103

Associated companies

 

641

710

178

120

Sales and trade accounts receivable from and trade accounts payable to related parties mainly included business with own products, merchandise, agency and licensing business and other operating business.

Other receivables and liabilities primarily arose from financing activities, outstanding dividend payments, profit-and-loss transfer agreements as well as other finance-related and operative activities and events.

The decrease in sales with associated companies in 2014 related primarily to the decrease in sales with companies of the Styrolution Group in the amount of €798 million particularly due to the plant outage at Ellba C.V. at the site in Moerdijk, Netherlands.

As in the previous year, there were no significant valuation allowances in 2014 for trade accounts receivable from related parties.

There were obligations from guarantees at BASF in favor of nonconsolidated subsidiaries in the amount of €8 million in 2014 (2013: €14 million) and obligations from guarantees and warranties in favor of associated companies in the amount of €27 million in 2014 (2013: €28 million).

Long-term purchase obligations with joint ventures arising from natural gas purchase contracts amounted to €32,561 million on December 31, 2014 (December 31, 2013: €46,141 million). The decrease was primarily due to the decline in oil prices.

Effective December 31, 2014, the present value of the outstanding minimum rental payments for an office building including parking area payable by BASF SE to BASF Pensionskasse VVaG for the nonterminable basic rental period to 2029 amounted to €63 million.

There were no reportable related party transactions with members of the Board of Executive Directors or the Supervisory Board and their related parties in 2014.