BASF Report 2021 Consoli dated Financial Statements – Independent Auditor’s Report 190 The determination of the recoverable amount of the shareholding in by BASF with the published forecasts of competitors, analysts, Other Information the Wintershall Dea is complex and based on discretionary assump- inter national institutions and other market participants. Due to the tions. These include, in particular, the estimates made by BASF’s increased estimation uncertainties regarding future oil and gas price The Board of Executive Directors and the Supervisory Board are Board of Executive Directors on the long-term development of oil and developments, we evaluated the impact of alternative price sce- responsible for the other information. The other information com- gas prices, the forecast production volumes of Wintershall Dea’s oil narios on the carrying amount of the shareholding and assessed the prises the following components of the Group Management Report, and gas fields based on expected license terms and production appropriateness of the valuation. whose content was not audited: profiles, and the cost of capital. The development of future oil and – the information of the integrated non-financial statement which is gas prices is subject to increased uncertainty, particularly in view of In consultation with our valuation specialists, we furthermore identified as unaudited the timing of the implementation of international climate targets. satisfied ourselves of the methodological appropriateness of the – the corporate governance statement in the section Corporate calculation and the appropriateness of the weighted cost of capital Governance of the Group Management Report, and In addition to the impairments and reversals of impairments of rates. We compared the assumptions and data underlying the cost – the disclosures which are not normally part of the Group Manage- €161 million after tax recognized by Wintershall Dea, as a result of the of capital, in particular the risk-free rate, the market risk premium ment Report and which are identified as unaudited. impairment test performed, the company recognized impairments of and the beta factor, with our own assumptions and publicly available €420 million on fair value adjustments of assets of Wintershall Dea data. Additionally, the other Information comprises the remaining parts of that are carried forward in income from non-integral companies the BASF Report 2021. accounted for using the equity method. In order to assess the accuracy of the measurement of the interest in Wintershall Dea, we reproduced selected calculations taking into The other information does not comprise the Consolidated Financial There is the risk for the financial statements that a decline in the value account risk-based considerations. Statements, the audited parts of the Group Management Report of the shareholding as of the balance sheet date was not identified. In and our auditor’s report. addition, there is also the risk that the associated disclosures in the Finally, we assessed whether the disclosures in the Notes on the Notes are not appropriate and complete. recoverability of the shareholding in Wintershall Dea are appropriate Our opinions on the Consolidated Financial Statements and on the and complete. Group Management Report do not cover the other information, and Our audit approach consequently we do not express an opinion or any other form of From explanations provided by employees in accounting, we gained Our observations assurance conclusion thereon. an understanding of the company’s process to identify indicators for The underlying calculation method for the impairment test of the impairment and to determine the recoverable amount. In doing so, shareholding in Wintershall Dea is appropriate and consistent with In connection with our audit, our responsibility is to read the we assessed, among other things, whether the calculation of the the applicable accounting principles. other information and, in so doing, to consider whether the other recoverable amount of the shareholding in W inters hall Dea is con- information sistent with the relevant accounting principles and whether the key The company’s assumptions and data underlying the measurement – is materially inconsistent with the Consolidated Financial State- assumptions made in this calculation are appropriate. are appropriate. The associated disclosures in the notes are appro- ments, with the Group Management Report information audited priate and complete. for content or our knowledge obtained in the audit, or We discussed the projected development of production volumes – otherwise appears to be materially misstated. and oil and gas prices with the persons responsible for planning. We evaluated the production profiles used in the measurement of the If we conclude, based on the work we have conducted, that there is exploration and production business’s assets, taking into account a material misstatement of this other information, we are obligated assessments by experts contracted by Wintershall Dea. In order to to report on this fact. We do not have anything to report in this assess its suitability as a basis for calculation, we had the oil and gas regard. price scenario used by the company explained to us. To assess its appropriateness, we compared the oil and gas price scenario used