19. Other Comprehensive Income
The content of this section is not part of the statutory audit of the annual financial statements but has undergone a separate limited assurance by our auditor.
The content of this section is voluntary, unaudited information, which was critically read by the auditor.
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 2024, changes in the value of defined benefit plans led to an increase in other comprehensive income of €1,477 million (after taxes of €273 million) of which €23 million related to investments accounted for using the equity method. In addition, the amount of €90 million was reclassified to retained earnings in connection with the sale of the E&P business of Wintershall Dea AG (Wintershall Dea GmbH since September 23, 2024), Kassel/Hamburg, Germany, to Harbour Energy plc, London, United Kingdom, which is accounted for using the equity method. In addition, the change in BASF’s share of assets in BASF Pensionskasse as a multi-employer plan resulted in a decrease in other comprehensive income of €98 million. In 2023, there was a decrease in other comprehensive income of €591 million (after taxes of €100 million); of that amount, €16 million related to investments accounted for using the equity method (for more information, see Note 21).
Currency translation
Differences resulting from currency translation led to an increase in equity by a total of €782 million in 2024; of that amount, €215 million related to investments accounted for using the equity method. These amounts include the reclassification of an expense of €43 million to the income statement in connection with the sale of Wintershall Dea’s E&P business. In addition, €10 million was reclassified as profit in the income statement in connection with the liquidation of a fully consolidated company.
In the previous year, equity was reduced by €1,220 million; of that amount, €234 million related to investments accounted for using the equity method.
In 2024, the differences resulted mainly from the appreciation of the U.S. dollar relative to the euro. In 2023, the differences were mainly due to the depreciation of the U.S. dollar and the Chinese renminbi relative to the euro.
Measurement of securities at fair value
Measurement of debt instruments at fair value led to a decrease in other comprehensive income of €1 million. The €172 million decrease in 2023 resulted from 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, 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 €7 million reduced equity by a total of €114 million, including €100 million for hedging of future cash flows at shareholdings accounted for using the equity method. In the previous year, changes in fair value adjusted for deferred taxes in the amount of €8 million increased equity by a total of 570€ million; this included €588 million for the hedging of future cash flows at shareholdings accounted for using the equity method.
As part of the sale of Wintershall Dea’s E&P business, €2 million from cumulative changes in the fair value of derivatives was reclassified to the income statement as an expense in 2024.
This content fulfills the Disclosure Requirements of the European Sustainability Reporting Standards (ESRS). The ESRS Index gives an overview of the references to the ESRSs in this report.