16 – Investments Accounted for Using the Equity Method and Other Financial Assets

Accounting policies

The carrying amounts of shareholdings accounted for using the equity method are adjusted annually based on the pro rata share of net income, dividends and other changes in equity. Should there be indications of a reduction in the value of an investment, an impairment test is conducted and, if necessary, an impairment is recognized in the income statement. Furthermore, earnings and the carrying amount were adjusted due to deviating accounting policies or purchase price allocations, primarily with respect to Wintershall Dea GmbH, Kassel/Hamburg, Germany.

Additions in 2019 related mainly to the share in Wintershall Dea GmbH, Kassel/Hamburg, Germany, in the amount of €14,078 million and in Solenis UK International Ltd., London, United Kingdom, in the amount of €590 million.

Disposals in 2019 included primarily a capital decrease in the amount of €1,541 million at Wintershall Dea GmbH, Kassel/Hamburg, Germany.

In addition to the net income of investments accounted for using the equity method, dividend distributions and other comprehensive income of the companies, transfers included €65 million from the reclassification of investments accounted for using the equity method to assets of the disposal group for the pigments business. Transfers in 2018 included €2,552 million from the reclassification of investments accounted for using the equity method to assets of the disposal group for the oil and gas business.

Investments accounted for using the equity method (Million €)

 

2019

2018

a

This item also includes effects on earnings from the discontinued oil and gas business in the amount of €99 million until reclassification to the disposal group as of September 30, 2018.

As of January 1

2,203

4,715

Changes in the scope of consolidation

Additions

14,678

55

Disposals

(1,573)

(10)

Transfersa

(282)

(2,571)

Currency effects

(18)

14

Net carrying amount as of December 31

15,008

2,203

Other financial assets (Million €)

 

December 31, 2019

December 31, 2018

Other shareholdings

501

453

Long-term securities

135

117

Other financial assets

636

570