Accounting policy

A disposal group is a group of assets to be disposed of, by sale or otherwise, together as a group in a single transaction, and liabilities directly associated with those assets that will be transferred in the transaction. The group includes goodwill acquired in a business combination if the group is a cash-generating unit to which goodwill has been allocated, or if it is an operation within such a cash-generating unit.

Non-current assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the asset (or disposal group) is available for immediate sale in its present condition. For a sale to be highly probable, management should be committed to a plan to sell the asset (or disposal group), an active program to locate a buyer and complete the plan should be initiated, the asset (or disposal group) should be actively marketed at a price which is reasonable in relation to its current fair value, the sale should be expected to be completed within one year from the date of classification, and actions required to complete the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

When the Group is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the Group will retain a non-controlling interest in its former subsidiary after the sale.

Non-current assets (and disposal groups) classified as held for sale are measured at the lower of their previous carrying amount and their fair value less costs to sell. Any excess of the carrying amount over the fair value less costs to sell is recognized as an impairment loss. Depreciation of such assets is discontinued as from their classification as held for sale. Prior period consolidated statements of financial position are not restated to reflect the new classification of a non-current asset (or a disposal group) as held for sale.

 

 

2018

In € million

 

Polyamides

Operating Segment

 

Performance Chemicals

Property, plant and equipment

 

670

Goodwill

 

173

Intangible assets

 

71

Investments

 

1

Deferred tax assets

 

32

Inventories

 

249

Trade receivables

 

200

Other assets

 

39

Assets held for sale

 

1,434

Provisions

 

75

Deferred tax liabilities

 

72

Other non-current liabilities

 

10

Trade payables

 

217

Income tax payables

 

12

Other liabilities

 

48

Liabilities associated with assets held for sale

 

435

Net carrying amount of the disposal group

 

999

Included in other comprehensive income

 

 

Currency translation differences

 

21

Defined benefit plans

 

(3)

Other comprehensive income

 

17

 

 

2017

In € million

 

Polyamides

 

Phosphorus Derivatives

 

Acetow

 

Total

Operating Segment

 

Performance Chemicals

 

Adanced Formulations

 

Performance Chemicals

 

 

Property, plant and equipment

 

557

 

13

 

 

 

569

Goodwill

 

173

 

7

 

 

 

180

Intangible assets

 

68

 

 

 

 

 

68

Investments

 

1

 

 

 

 

 

1

Deferred tax assets

 

17

 

 

 

 

 

17

Inventories

 

178

 

8

 

 

 

186

Trade receivables

 

219

 

 

 

17

 

236

Other assets

 

26

 

 

 

 

 

26

Assets held for sale

 

1,239

 

28

 

17

 

1,284

Provisions

 

74

 

 

 

 

 

74

Deferred tax liabilities

 

38

 

 

 

 

 

38

Other non-current liabilities

 

2

 

 

 

 

 

2

Trade payables

 

186

 

 

 

 

 

186

Income tax payables

 

4

 

 

 

 

 

4

Other liabilities

 

45

 

 

 

 

 

45

Liabilities associated with assets held for sale

 

349

 

 

 

 

 

349

Net carrying amount of the disposal group

 

890

 

28

 

17

 

935

Included in other comprehensive income

 

 

 

 

 

 

 

 

Currency translation differences

 

21

 

 

 

 

 

21

Defined benefit plans

 

(3)

 

 

 

 

 

(3)

Other comprehensive income

 

19

 

 

 

 

 

19