15. Other (Financial) Assets and Non-current Assets and Disposal Groups Held for Sale
Other non-current financial assets comprise investments in associated companies, investments in non-consolidated affiliates, other investments and other assets, which essentially comprises the lease receivables. Non-current assets mainly include prepaid expenses and deferred charges. Other current financial assets include other receivables, derivative financial instruments, and financial receivables. Other current assets mainly comprise other tax receivables, prepaid expenses, as well as the net pension asset related to individual pension plans (see Note 27 “Provisions for pensions and similar obligations”).
The significant change in other financial and non-financial assets compared to the 2023 financial year is due to the increase in other non-current financial assets as a result of the first-time application of finance leases in accordance with IFRS 16 as lessor. This first-time application is due to the acquisition of the developed land of Clinique La Prairie on Lake Geneva in August 2024. The acquisition of Clinique La Prairie is not a business combination within the meaning of IFRS 3, as the developed land is the company’s only asset. The company acquired from the acquisition is solely responsible for holding the developed land and collecting rent and there are no other significant processes. Accordingly, in accordance with IFRS 3.2b, the identified assets (= developed land) and liabilities are recognized in the consolidated balance sheet in accordance with the relevant standards. At initial recognition, the lease receivable amounted to €117 million. This amount remained unchanged at €117 million as at 31.12.2024 due to ongoing rental payments (reducing receivables) and interest (increasing receivables). The lease receivable is divided into €111 million in other non-current financial assets and €6 million in other current financial assets. The lease receivable is recognized at amortized cost. The fair value of the lease receivable as at the balance sheet date amounted to €162 million. To minimize future risks from the acquisition, variable index-dependent payments were agreed in order to mitigate the decline in value of the developed property.
The following table shows the contractually agreed, undiscounted future lease receivables before possible index adjustments.
|
|
Dec. 31, 2024 |
|---|---|---|
Less than one year |
|
6 |
One to two years |
|
6 |
Two to three years |
|
6 |
Three to four years |
|
6 |
Four to five years |
|
6 |
More than five years |
|
140 |
|
|
170 |
Non-current assets and disposal groups held for sale amount to €2 million as of December 31, 2024 (previous year: €1 million).
These include land and building of €1 million from the subsidiary tesa UK Ltd. These are to be sold in the course of financial year 2025.