Accounting policy
Other non-current 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. We generally apply the irrevocable election upon initial recognition to present subsequent changes in the fair values of these interests in Other comprehensive income (OCI) as these represent investments that dsm-firmenich intends to hold for a longer term for strategic purposes. 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 2023 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
Changes: |
|
|
|
|
|
|
|
|
|
|
- Charged to the income statement |
|
– |
|
– |
|
8 |
|
– |
|
8 |
- Acquisitions |
|
– |
|
– |
|
– |
|
– |
|
– |
- Disposals |
|
– |
|
(387) |
|
– |
|
– |
|
(387) |
- Capital payments |
|
– |
|
6 |
|
– |
|
– |
|
6 |
- Loans granted/prepayments |
|
47 |
|
– |
|
55 |
|
– |
|
102 |
- Repayments/(receipts) |
|
– |
|
– |
|
(48) |
|
– |
|
(48) |
- Exchange differences |
|
– |
|
(9) |
|
(2) |
|
1 |
|
(10) |
- Transfers |
|
(3) |
|
11 |
|
54 |
|
– |
|
62 |
- Changes in fair value through OCI |
|
– |
|
10 |
|
– |
|
– |
|
10 |
- Changes in fair value through income statement |
|
– |
|
2 |
|
– |
|
– |
|
2 |
- Expected credit loss (ECL) adjustment and impairments |
|
(1) |
|
– |
|
(45) |
|
– |
|
(46) |
- Other changes |
|
– |
|
– |
|
– |
|
1 |
|
1 |
Balance at 31 December 2024 |
|
54 |
|
209 |
|
111 |
|
17 |
|
391 |
The company is focusing on its consumer activities after having announced plans to separate the Animal Nutrition & Health business from the Group and after tuning the portfolio by deprioritizing certain activities. As part of that portfolio change, the company disposed of its 386,732 shares and 102,000 share certificates of Robertet S.A. for a consideration of €387 million. Results on this investment are recognized via FVOCI. The accumulated result in the Fair value reserve amounting to €24 million was recycled to Retained earnings.
In 2024, all investments under other participating interests were classified as FVOCI. These other participating interests mainly include investments in dsm-firmenich’s venturing portfolio.
The ‘Expected credit loss (ECL) adjustment and impairment’ of €45 million relates to the loan that was waived as part of the Jiangshan divestment (see also Note 3 Change in the scope of consolidation).