19. Other Comprehensive Income
Accounting policies
The expenses and income shown in other comprehensive income are divided into two categories: Items that will be recognized in the income statement in the future (known as “recycling”) and items that will not be reclassified to the income statement in the future. The first category includes gains and losses from currency translation, the measurement of certain securities classified as debt instruments, and changes in the fair value of derivatives held to hedge future cash flows. Items that will not be reclassified to the income statement at a future date include effects from the remeasurement of defined benefit plans.
Remeasurement of defined benefit plans
In 2023, changes in the value of defined benefit plans led to a decrease in other comprehensive income of €591 million (after taxes) of which €16 million related to investments accounted for using the equity method. In the previous year, there was a rise of €2,586 million (after taxes); of that amount, €83 million related to investments accounted for using the equity method. Deferred taxes amounted to €100 million in 2023 and to -€1,256 million in 2022.
Currency translation
Differences resulting from currency translation led to a decrease in equity by a total of €1,220 million in 2023; of that amount, €234 million related to investments accounted for using the equity method. In the previous year, an increase resulted in the amount of €1,135 million; of that amount, €583 million related to investments accounted for using the equity method. These amounts included €12 million in deferred taxes in 2023 (2022: -€7 million). In 2023, the difference resulted mainly from the depreciation of the Chinese renminbi and the U.S. dollar, and, in 2022, from the appreciation of the U.S. dollar and the Brazilian real relative to the euro.
With the deconsolidation of the Russian shareholdings held by Wintershall Dea AG, Kassel / Hamburg, Germany, total differences arising from currency translation of €868 million were reclassified as earnings to the income statement in 2022.
Measurement of securities at fair value
Measurement of securities at fair value in 2023 led to a decrease in other comprehensive income of €172 million (2022: -€16 million). This was due to impairments of equity instruments measured at fair value through other comprehensive income pursuant to IFRS 9 in the amount of €180 million at Wintershall Dea AG, Kassel/Hamburg, Germany, which is accounted for using the equity method.
Cash flow hedges
Changes in the fair value of derivatives designated in hedging relationships (cash flow hedges) adjusted for deferred taxes in the amount of €8 million (2022: -€8 million) increased equity by a total of €570 million (2022: -€33 million). In 2023, €588 million (2022: €37 million) was attributable to the hedging of future cash flows at shareholdings accounted for using the equity method.