16 – Investments accounted for using the equity method and other financial assets
Investments accounted for using the equity method (in million €) |
|||
|
|
2015 |
2014 |
|---|---|---|---|
Balance as of January 1 |
|
3,245 |
4,174 |
Changes in scope of consolidation |
|
– |
16 |
Additions |
|
847 |
40 |
Disposals |
|
(107) |
(781) |
Transfers |
|
398 |
(117) |
Exchange differences |
|
53 |
(87) |
Net carrying amount as of December 31 |
|
4,436 |
3,245 |
Other financial assets (in million €) |
|||
|
|
December 31, |
December 31, |
|---|---|---|---|
Other shareholdings |
|
420 |
462 |
Long-term securities |
|
106 |
78 |
Other financial assets |
|
526 |
540 |
Additions of €847 million to investments accounted for using the equity method were primarily due to the asset swap with Gazprom. As a result, the closed joint stock company Achim Trading in Moscow, Russia, and the limited liability company Achim Development in Novy Urengoy, Russia, were accounted for using the equity method for the first time.
Disposals totaling €107 million were primarily attributable to the sale of BASF’s 25% share in SolVin to its partner Solvay, effective July 1, 2015. In the previous year, the sale of BASF’s share in Styrolution Holding GmbH to the INEOS Group had been primarily responsible for disposals of €781 million.
Transfers include €407 million from the first-time use of the equity method to account for Wintershall Noordzee B.V., Rijswijk, Netherlands. As a result of the disposal of its 50% share in Wintershall Noordzee B.V. to Gazprom, BASF no longer exercises control over this company alone but rather shares control with Gazprom. Wintershall Noordzee B.V. must now therefore be accounted for using the equity method in the Consolidated Financial Statements. Due to ongoing low prices for oil and gas and the resulting revision of planning assumptions, the share in Wintershall Noordzee B.V. was impaired by €109 million. This amount is also reflected in transfers. The recoverable amount of €291 million corresponds to the value in use of the company, and was determined using the after-tax cash flows from the oil and gas fields in which the company has interests. They were discounted using a cost of capital rate after taxes of 7.8%. In 2014, transfers had included impairments of €25 million. Transfers additionally contains income and dividend distributions from companies accounted for using the equity method.
The change in other shareholdings resulted from additions of €24 million and disposals of €57 million. Impairments amounted to €47 million. Other shareholdings increased by €26 million as a result of reclassifications and transfers. Currency effects amounted to €12 million.