(36) Other financial assets
Accounting and measurement policies
Other financial assets
This section does not cover the accounting and measurement policies for derivative financial instruments. They are presented in Note (39) Derivative financial instruments.
Recognition and initial measurement
Financial assets are initially measured at fair value and recognized as of the settlement date. For financial assets not subsequently measured at fair value through profit or loss in subsequent periods, initial measurement also includes directly attributable transaction costs. Any positive difference between the fair value of a financial instrument on initial recognition (Level 2 and 3 in the IFRS 13 fair value hierarchy) and the transaction price is recognized in income on a straight-line basis over the duration.
Detailed information on the measurement methods for financial assets measured at fair value are presented in Note (43) Information on fair value measurement.
Classification and subsequent measurement
On initial recognition, financial assets are assigned to one of the following measurement categories, which also correspond to the financial instrument classes as defined in IFRS 9:
Subsequent measurement at amortized cost
Subsequent measurement at fair value through other comprehensive income
Subsequent measurement at fair value through profit or loss
This classification is based on the business model and the structure of contractual payment flows. Financial assets measured at amortized cost and financial assets at fair value through other comprehensive income are accounted for using the effective interest method and taking account of any impairment losses. The procedure for calculating impairment losses is described in Note (42) Management of financial risks.
Financial assets measured at amortized cost are held in order to collect their contractual cash flows, which are exclusively principal repayments and interest payments on the outstanding capital amount. In the case of debt instruments at fair value through other comprehensive income, the business model provides for the collection of the contractual cash flows as well as the sale of the financial assets. The cash flows for this class are also exclusively principal repayments and interest payments on the outstanding capital amount.
Except for derivative financial instruments with positive market values, the Group only applies subsequent measurement at fair value through profit or loss for debt instruments with contractual properties resulting in cash flows that do not exclusively represent principal repayments and interest payments on the outstanding capital amount. In particular, this includes contingent consideration that was contractually agreed with the acquirer in the context of the disposal of businesses within the meaning of IFRS 3 (see Note (43) Information on fair value measurement). The Group does not utilize the option of the subsequent measurement of debt instruments at fair value through profit or loss.
If not held for trading, equity instruments are measured at fair value through other comprehensive income. Further details on the measurement of equity instruments at fair value are presented in Note (43) Information on fair value measurement.
Financial assets are only reclassified in the event of changes to the business model regarding the management of financial assets.
Derecognition
Financial assets are derecognized if the claim for the compensation is fulfilled by the counterparty, if there is no longer a reasonable expectation that the counterparty will fulfill its contractual obligations, or if the Group transfers the contractual rights including all material risks and rewards of the financial asset to another counterparty.
Recognition
Measurement effects of debt instruments are reported in the Consolidated Balance Sheet, the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income as follows:
Category |
|
Asset type |
|
Impairment losses/reversals of impairment losses |
|
Net gain and net loss on disposal/value adjustments |
|
Foreign currency gains or losses |
|
Interest income or expenses |
|---|---|---|---|---|---|---|---|---|---|---|
Subsequent measurement at amortized cost |
|
Operational |
|
Impairment losses, and reversals of impairment losses of financial assets (net) |
|
Other operating income or other operating expenses |
|
Other operating income or other operating expenses |
|
Financial income and expenses (applying the effective interest method) |
|
Financial |
|
Financial income and expenses |
|
Financial income and expenses |
|
Financial income and expenses |
|
||
Subsequent measurement at fair value through other comprehensive income |
|
Operational |
|
Impairment losses, and reversals of impairment losses of financial assets (net) |
|
Group equity (upon derecognition: reclassification to other operating income or other operating expenses) |
|
Other operating income or other operating expenses |
|
Financial income and expenses (applying the effective interest method) |
|
Financial |
|
Financial income and expenses |
|
Group equity (upon derecognition: reclassification to financial income and expenses) |
|
Financial income and expenses |
|
||
Subsequent measurement at fair value through profit or loss |
|
Operational |
|
|
|
Other operating income or other operating expenses |
|
Other operating income or other operating expenses |
|
Financial income and expenses |
|
Financial |
|
|
|
Financial income and expenses |
|
Financial income and expenses |
|
The following table provides details on the measurement effects of equity instruments on the Consolidated Balance Sheet, the Consolidated Income Statement and the Consolidated Statement of Comprehensive Income:
Category |
|
Asset type |
|
Value adjustments |
|
Foreign currency |
|
Dividend income |
|---|---|---|---|---|---|---|---|---|
Subsequent measurement at fair value through other comprehensive income |
|
Operational |
|
Results recognized directly in equity (value adjustments) |
|
Foreign currency gains and losses recognized directly in equity |
|
Other operating income |
|
|
Reclassification of the cumulative results previously recognized directly in equity in the retained earnings when asset is disposed |
|
|
||||
|
Financial |
|
Results recognized directly in equity (value adjustments) |
|
Foreign currency gains and losses recognized directly in equity |
|
Financial income |
|
|
|
Reclassification of the cumulative results previously recognized directly in equity in the retained earnings when asset is disposed |
|
|
||||
Subsequent measurement at fair value through profit or loss |
|
Operational |
|
Other operating income or other operating expenses |
|
Other operating income or other operating expenses |
|
Other operating income |
|
Financial |
|
Financial income and expenses |
|
Financial income and expenses |
|
Financial income |
At the reporting date, other financial assets were composed as follows:
|
|
Dec. 31, 2025 |
|
Dec. 31, 2024 |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
€ million |
|
Current |
|
Non-current |
|
Total |
|
Current |
|
Non-current |
|
Total |
Subsequent measurement at amortized cost |
|
591 |
|
4 |
|
594 |
|
559 |
|
3 |
|
562 |
Other debt instruments |
|
591 |
|
4 |
|
594 |
|
559 |
|
3 |
|
562 |
Subsequent measurement at fair value through other comprehensive income |
|
– |
|
623 |
|
623 |
|
– |
|
799 |
|
799 |
Equity instruments |
|
– |
|
622 |
|
622 |
|
– |
|
798 |
|
798 |
Other debt instruments |
|
– |
|
1 |
|
1 |
|
– |
|
1 |
|
1 |
Subsequent measurement at fair value through profit and loss |
|
23 |
|
363 |
|
387 |
|
75 |
|
370 |
|
445 |
Contingent consideration |
|
– |
|
162 |
|
162 |
|
– |
|
151 |
|
151 |
Other debt instruments |
|
6 |
|
146 |
|
153 |
|
– |
|
162 |
|
162 |
Derivatives without a hedging relationship |
|
17 |
|
54 |
|
71 |
|
75 |
|
57 |
|
132 |
Derivatives with a hedging relationship |
|
74 |
|
3 |
|
76 |
|
8 |
|
– |
|
8 |
Financial assets |
|
688 |
|
992 |
|
1,680 |
|
642 |
|
1,172 |
|
1,814 |
As in the previous year, other debt instruments measured at amortized cost subsequent to initial recognition primarily comprised short-term investments in structured products based on marketable greenhouse gas emission certificates.
Equity instruments subsequently measured at fair value through other comprehensive income mainly comprised shares in listed and unlisted companies that invest in innovative technologies and products or that are held as part of the future-oriented M Ventures portfolio:
€ million |
|
Fair value as of Dec. 31, 2025 |
|
Fair value: hierarchy level IFRS 13 |
|
Fair value as of Dec. 31, 2024 |
|
Fair value: hierarchy level IFRS 13 |
||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Artios Pharma Limited, UK |
|
<25 |
|
Level 3 |
|
<50 |
|
Level 3 |
||||
Asceneuron SA, Switzerland |
|
<15 |
|
Level 3 |
|
<25 |
|
Level 3 |
||||
Celestial AI Inc., United States1 |
|
|
|
|
|
<100 |
|
Level 3 |
||||
DNA Script S.A.S., France |
|
<15 |
|
Level 3 |
|
<25 |
|
Level 3 |
||||
ElectronInks Inc., United States |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Formo Bio GmbH, Germany |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
FoRx Therapeutics AG, Switzerland |
|
<25 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
IDRX, Inc., United States |
|
|
|
|
|
<25 |
|
Level 3 |
||||
InfraServ GmbH & Co. Wiesbaden KG, Germany |
|
<15 |
|
Level 3 |
|
<25 |
|
Level 3 |
||||
iOnctura B.V., Netherlands |
|
<25 |
|
Level 3 |
|
<25 |
|
Level 3 |
||||
Lightcast Discovery Ltd., UK |
|
<15 |
|
Level 3 |
|
<25 |
|
Level 3 |
||||
MemryX Inc., USA |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
MoonLake Immunotherapeutics Ltd., Cayman Islands1 |
|
|
|
|
|
145 |
|
Level 1 |
||||
Mosa Meat B.V., Netherlands |
|
<25 |
|
Level 3 |
|
<25 |
|
Level 3 |
||||
Nouscom AG, Switzerland |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Pictor Labs, Inc., USA |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Plexium Inc., United States |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Precigen, Inc., United States |
|
74 |
|
Level 1 |
|
19 |
|
Level 1 |
||||
SeeQC Inc., United States |
|
<50 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Storm Therapeutics Limited, UK |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Theolytics Ltd., UK |
|
<15 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Vera Therapeutics, Inc., United States |
|
83 |
|
Level 1 |
|
78 |
|
Level 1 |
||||
Vizgen Inc., United States |
|
<25 |
|
Level 3 |
|
<15 |
|
Level 3 |
||||
Wiliot Ltd., Israel |
|
<15 |
|
Level 3 |
|
<25 |
|
Level 3 |
||||
Other (notation in an active market) |
|
– |
|
Level 1 |
|
2 |
|
Level 1 |
||||
Other (no notation in an active market) |
|
214 |
|
Level 3 |
|
221 |
|
Level 3 |
||||
|
|
|
|
|
|
|
|
|
||||
Total |
|
622 |
|
|
|
798 |
|
|
||||
|
||||||||||||
Details on disposals of equity instruments measured at fair value through other comprehensive income are provided in the following table. The reclassifications to assets held for sale and their disposals are described in Note (6) Acquisitions and divestments.
€ million |
|
Reasons for the disposal |
|
Fair value on the date of derecognition |
|
The cumulative gain (+) or loss (-) on disposal recognized in other comprehensive income |
|
Transfer of the cumulative gains (+) or losses (-) within group equity to retained earnings |
|---|---|---|---|---|---|---|---|---|
2025 |
|
|
|
|
|
|
|
|
Celestial AI Inc., USA |
|
Partial sale |
|
21 |
|
19 |
|
19 |
IDRX, Inc., USA |
|
Full acquisition by third parties |
|
59 |
|
38 |
|
38 |
Other equity instruments with subsequent measurement at fair value through other comprehensive income |
|
Portfolio adjustment/restructuring or full acquisition by third parties |
|
23 |
|
-1 |
|
-1 |
|
|
|
|
|
|
|
|
|
2024 |
|
|
|
|
|
|
|
|
Other equity instruments with subsequent measurement at fair value through other comprehensive income |
|
Portfolio adjustment/restructuring or full acquisition by third parties |
|
7 |
|
– |
|
– |
As in the previous year, contingent consideration primarily included claims arising from the divestment of the biosimilars business to a subsidiary of Fresenius SE & Co. KGaA, Bad Homburg vor der Höhe, Germany, in fiscal 2017.