17. Receivables and Miscellaneous Assets

The decrease in current loans and interest receivables primarily related to repayments of loans granted to partner companies in China.

The change in noncurrent and current derivatives with positive fair values was mainly due to a decline in market value of commodity derivatives on precious metals.

Bank acceptance drafts are used as a means of payment in China. Bank acceptance drafts are issued at a discount to their nominal 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.

Noncurrent other receivables that qualify as financial instruments mainly include a receivable from the retrospective initial fund loan to the BASF Pensionskasse (pension fund) as well as receivables from customer financing in North America. Current other receivables that qualify as financial instruments primarily consist of call deposits with banks, receivables from suppliers as well as receivables from customer financing.

Prepaid expenses in 2024 mainly included prepayments of €39 million for operating activities compared with €38 million in 2023, as well as €78 million in prepaid insurance premiums in 2024 compared with €72 million in 2023. Prepayments for license costs increased from €59 million in 2023 to €72 million in 2024.

As in the previous year, defined benefit assets were recognized in 2024 mainly at Group companies in Germany, Switzerland and the United Kingdom. An asset ceiling was in effect in 2024 and 2023 for pension plans in Switzerland (for more information, see Note 21).

The change in current other tax receivables was largely attributable to the decrease in sales tax receivables.

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.

Emission rights granted free of charge by the German Emissions Trading Authority (DEHSt) or a comparable authority in other countries are recognized in the balance sheet at a value of zero. Certificates purchased on the market are capitalized at cost and reported as other assets. Emission rights purchased on the market are subsequently measured at amortized cost. If the fair value is lower than the carrying amount on the balance sheet date, the emission rights are impaired.

The rise in current other receivables and assets that do not qualify as financial instruments resulted mainly from higher 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, and other receivables as of December 31, 2024.

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 2024, valuation allowances of €129 million (previous year: €134 million) were added for trade accounts receivable, and valuation allowances of €97 million (previous year: €181 million) were reversed.

In 2024, valuation allowances of €18 million were recognized for other receivables that qualify as financial instruments, and valuation allowances of €34 million were reversed. In the previous year, valuation allowances of €58 million were recognized and valuation allowances of €18 million were reversed (for more information, see Note 25).