17. Receivables and Miscellaneous Assets

The rise in noncurrent derivatives with positive fair values related primarily to power purchase agreements. The change in current derivatives with positive fair market values was largely attributable to the decline in fair values of precious metals commodity derivatives.

Bank acceptance drafts are used as an alternative form of payment in China. Bank acceptance drafts are issued at a discount from their par value. They can be held to maturity, traded or redeemed prematurely at a discount. If BASF discounts a bank acceptance draft with recourse, a liability toward the credit institution is recognized in the amount of the payment received.

Prepaid expenses in 2023 mainly included prepayments of €38 million related to operating activities compared with €45 million in 2022, as well as €72 million in prepayments for insurance in 2023 compared with €77 million in 2022. Prepayments for license costs increased from €55 million in 2022 to €59 million in 2023.

As in the previous year, defined benefit assets were recognized in 2023 mainly at Group companies in Switzerland and the United Kingdom. An asset ceiling was in effect in 2023 and in the previous year for the pension plans in Switzerland.

• For more information on plan assets, see Note 21

The change in current receivables for income taxes was largely attributable to the decline in receivables for income tax refunds.

Precious metal trading items primarily comprise physical items, precious metal accounts as well as long positions in precious metals, most of which were hedged through forward sales or derivatives.

The decline in current other receivables and assets, which do not represent financial instruments, was due to lower advance payments.

The table below presents the gross values and credit risks for trade accounts receivable other than trade accounts receivable measured at fair value through profit or loss as of December 31, 2023.

There are currently no significant credit risks (or a concentration thereof) associated with other financial instruments.

Payment terms are generally agreed upon individually with customers and, as a rule, are within 90 days. In 2023, valuation allowances of €134 million (2022: €130 million) were added for trade accounts receivable, and valuation allowances of €181 million (2022: €124 million) were reversed.

In 2023, valuation allowances of €58 million were recognized for other receivables representing financial instruments, and valuation allowances of €18 million were reversed. In the previous year, valuation allowances of €24 million were recognized and valuation allowances of €19 million were reversed.

• For more information on valuation allowances on receivables, see Note 25