Accounting policy
Other financial assets comprise loans to associates and joint ventures, other participating interests and other long-term investments and receivables.
Other participating interests comprise equity interests in entities in which dsm-firmenich has no significant influence. dsm-firmenich generally applies the irrevocable election upon initial recognition to present subsequent changes in the fair values of these interests in Other comprehensive income (OCI). Fair value changes in OCI will not be recycled through profit and loss upon disposal of the interest. All dividends received will be presented in profit or loss.
dsm-firmenich’s business model objective for loans granted is ‘held-to-collect contractual cash flows only’. Held to collect loans, other receivables and other deferred items, for which the contractual cash flows consist solely of principal and interest, are measured at amortized cost, using the effective interest method, which generally corresponds to the nominal value, less an adjustment for expected credit loss. Upon disposal of these assets, the gain or loss is recognized in profit or loss.
Other long-term investments and receivables, for which the contractual cash flows are not solely principal and interest, are recognized at fair value, with changes in fair value recognized in profit or loss.
|
|
Loans associates and joint ventures |
|
Other participating interests |
|
Other receivables |
|
Other |
|
Total |
|---|---|---|---|---|---|---|---|---|---|---|
Balance at 1 January 2022 |
|
1 |
|
191 |
|
31 |
|
4 |
|
227 |
|
|
|
|
|
|
|
|
|
|
|
Changes: |
|
|
|
|
|
|
|
|
|
|
- Charged to the income statement |
|
- |
|
- |
|
1 |
|
(1) |
|
- |
- Disposals |
|
- |
|
(24) |
|
- |
|
- |
|
(24) |
- Capital payments |
|
- |
|
28 |
|
- |
|
- |
|
28 |
- Loans granted/prepayments |
|
1 |
|
- |
|
127 |
|
- |
|
128 |
- Repayments/(receipts) |
|
- |
|
- |
|
1 |
|
3 |
|
4 |
- Exchange differences |
|
- |
|
- |
|
(7) |
|
- |
|
(7) |
- Transfers |
|
- |
|
- |
|
16 |
|
- |
|
16 |
- Changes in fair value |
|
- |
|
(66) |
|
- |
|
- |
|
(66) |
- Expected credit loss (ECL) adjustment and impairments |
|
- |
|
- |
|
(11) |
|
- |
|
(11) |
- Reclassification from/to held for sale |
|
- |
|
(4) |
|
- |
|
- |
|
(4) |
- Other changes |
|
- |
|
- |
|
- |
|
4 |
|
4 |
Balance at 31 December 2022 |
|
2 |
|
125 |
|
158 |
|
10 |
|
295 |
|
|
|
|
|
|
|
|
|
|
|
Changes: |
|
|
|
|
|
|
|
|
|
|
- Charged to the income statement |
|
- |
|
- |
|
(1) |
|
- |
|
(1) |
- Acquisitions |
|
7 |
|
491 |
|
33 |
|
7 |
|
538 |
- Disposals |
|
- |
|
(10) |
|
- |
|
- |
|
(10) |
- Capital payments |
|
- |
|
10 |
|
- |
|
- |
|
10 |
- Loans granted/prepayments |
|
3 |
|
- |
|
13 |
|
- |
|
16 |
- Repayments/(receipts) |
|
- |
|
- |
|
- |
|
(4) |
|
(4) |
- Exchange differences |
|
- |
|
23 |
|
(1) |
|
(1) |
|
21 |
- Transfers |
|
- |
|
- |
|
(24) |
|
4 |
|
(20) |
- Changes in fair value through OCI |
|
- |
|
(65) |
|
- |
|
- |
|
(65) |
- Changes in fair value through income statement |
|
- |
|
(5) |
|
- |
|
- |
|
(5) |
- Other changes |
|
(1) |
|
7 |
|
(89) |
|
(1) |
|
(84) |
Balance at 31 December 2023 |
|
11 |
|
576 |
|
89 |
|
15 |
|
691 |
For acquisitions, see Note 3 Change in the scope of consolidation. This includes 21.8% of Robertet SA’s share interests for €433 million, representing approximately 11% of voting rights. At 31 December 2023, this investment amounts to €416 million.
‘Changes in fair value’ consists mainly of the value decrease of our minority share in Amyris, Inc. (-€24 million) and the value decrease of our minority share in Robertet SA (-€42 million). These changes are posted to the Fair value reserve in Other comprehensive income.