BASF Report 2021 Consoli dated Financial Statements – Notes 228 reversals of impairments recorded for Wintershall Dea (€161 million Reconciliation of the carrying amounts of non-integral investments accounted for using the equity method after tax reported in BASF’s net income from shareholdings), Million € proportional impairments arose in the amount of €680 million before Joint ventures Associated companies taxes on the amortized fair value adjustments from 2019, which 2021 2020 2021 2020 reduced the carrying amount by €420 million. Of that amount, Carrying amounts according to the equity method as of the beginning of the year 10,199 12,401 675 722 €408 million was attributable to Argentina, and was caused by the Proportional income after taxes and other adjustments to income and expenses – –890 –304 –35 planned disposal of operated unconventional oil activities, the Proportional changes in other comprehensive income – –1,255 216 –2 increase in the corporate tax rate, an increased country risk, the Total comprehensive income − –2,145 –88 –37 implementation of a regulated gas price scheme by the Argentine government until 2028, as well as updated price assumptions. Changes in the scope of consolidation – – –18 – Furthermore, the latter led to minor impairments in Norway and Additions – – – – Libya. In the previous year, impairments amounting to €791 million Disposals – – – –10 after taxes resulted from lower oil and gas price forecasts as well as Transfers –10,199 –57 9,274 – from changed reserve estimates. The shareholding as a whole is Carrying amounts according to the equity method as of the end of the year − 10,199 9,843 675 recoverable. Values in use were determined for the impairment test as of December 31, 2021. The underlying assumptions for production Only the shareholding in Wintershall Dea was included in joint Disposals in 2020 included a capital decrease in Solenis UK and cost trends as well as the price assumptions for 2023 to 2040 ventures in 2020. For 2021, proportional income after taxes and International Ltd. in the amount of €10 million. correspond with Wintershall Dea’s. For 2022, BASF anticipates an other adjustments to income and expenses as well as the oil price of $75 per bbl of Brent crude and a gas price (TTF) of proportional changes in other comprehensive income for Transfers in 2021 contained primarily the reclassification of $17.2 per mmBtu. After a decline in oil prices to approximately Wintershall Dea are reported in full under associated companies. Wintershall Dea from joint ventures to associated companies. In $71 per bbl in 2023, and in gas prices to around $8 per mmBtu in Until November 1, 2021, when Wintershall Dea became an addition, transfers regarding associated companies related to 2023 and 2024, a subsequent increase is assumed at a nominal associated company, proportional income after taxes and other dividend payments by Wintershall Dea GmbH as well as to the rate of 2% p.a. for both oil and gas. The expected cash flows were adjustments to income and expenses amounted to €258 million; reclassification of Solenis shares to the disposal group. discounted using country-specific cost of capital rates, which reflect proportional changes in other comprehensive income amounted to the relevant country risks and tax rates. The cost of capital rates in –€757 million until that date. euros, calculated using the capital asset pricing model, were between 3.4% and 14.3% (2021: between 3.4% and 14.4%). A The proportional changes of other comprehensive income in decrease of 10% in oil and gas price assumptions for the entire 2021 predominantly included changes in the fair value of derivatives planning period would result in the need for an impairment of about used to hedge gas prices and currency effects of Wintershall Dea. €613 million of the shareholding in Wintershall Dea as a whole. An increase in capital cost rates of one percentage point would lead to Changes in the scope of consolidation included the shareholding additional proportional impairments of appr oximately €200 million in Solenis UK International Ltd, London, United Kingdom. The before tax which would burden net income fr om shareholdings by former Solenis group holding company will be reported under other €70 million and reduce the carrying amount accordingly. financial assets until its complete liquidation. For more information on Wintershall Dea, see the chapter on Non-Integral Oil and Gas Business in the Management’s Report from page 93 onward