Solvay
2019 Annual Integrated Report

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the plan should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.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 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 disposal group) as held for sale.

 

2019

2018

In € million

Polyamides

Polyamides

Operating Segment

Performance Chemicals

Performance Chemicals

Property, plant and equipment

817

670

Goodwill

173

173

Intangible assets

69

71

Right-of-use assets

35

 

Investments

1

1

Deferred tax assets

34

32

Inventories

236

249

Trade receivables

186

200

Other assets

33

39

Assets held for sale

1,586

1,434

Provisions

81

75

Deferred tax liabilities

110

72

Other non-current liabilities

21

10

Trade payables

147

217

Income tax payables

14

12

Other liabilities

63

48

Liabilities associated with assets held for sale

437

435

Net carrying amount of the disposal group

1,149

999

Included in other comprehensive income

 

 

Currency translation differences

19

21

Defined benefit plans

(5)

(3)

Other comprehensive income

14

17

Property, plant and equipment increased as a result of continued capital expenditures. Since the classification of Polyamides as held for sale (2017), no depreciations have been recognized.