3. Financial assets accounted for using the equity method

Investments in associates are accounted for using the equity method. They are initially recognised at acquisition cost, which also includes transaction costs. After initial recognition, the consolidated financial statements include the Group’s share in profit/(loss) for the period and in changes in other comprehensive income until the date the applicable influence ends.

At each reporting date, UNIQA reviews whether there are any indications that the investments in associates are impaired. If this is the case, then the impairment loss is recorded as the difference between the participation carrying amount of the associate and the corresponding recoverable amount and recognised separately in profit/(loss) for the period. An impairment loss is reversed in the event of an advantageous change in the estimates used to determine the recoverable amount.

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Reconciliation of summarised financial information

In € thousand

STRABAG SE

Associated companies not material on a stand-alone basis

2020¹⁾ ²⁾

2019²⁾

2020

2019

Net assets at 1 January

3,789,440

3,542,415

162,884

151,166

Dividends

–92,340

–133,380

–495

–9,633

Profit/(loss) after taxes

366,695

375,535

27,562

17,731

Other comprehensive income

–97,046

4,870

–892

3,620

Net assets at 31 December

3,966,748

3,789,440

189,059

162,884

Shares in associated companies

14.26%

Various investment amounts

Carrying amount

606,320

579,218

71,601

63,196

1)	Estimate for 31 Dec. 2020 based on financial information as at 30 July 2020 on STRABAG SE available as at the reporting date
2)	The carrying amounts are calculated based on the shares in circulation. 2020: 15.29%, 2019: 15.29%

As at 31 December 2020, UNIQA held a 14.3 per cent stake in STRABAG SE (31 December 2019: 14.3 per cent). UNIQA treats STRABAG SE as an associate due to contractual arrangements. As part of the accounting using the equity method, an assessment of the share in STRABAG SE was made, based on the financial information published at 30 June 2020, for the period up until 31 December 2020.

The fair value of the shares is based on the stock market price at 31 December 2020 and amounts to €446,950 thousand (2019: €486,156 thousand). Although the external impairment indicator was available, no impairment was required.

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Summarised statement of comprehensive income

In € thousand

STRABAG SE¹⁾

1–6/2020

1–6/2019

Revenue

6,321,813

6,979,073

Depreciation

–255,012

–233,738

Interest income

20,572

15,403

Interest expenses

–34,058

–34,898

Income taxes

–30,984

–27,563

Profit/(loss) for the period

630

13,942

Other comprehensive income

–58,194

2,167

Total comprehensive income

–57,564

16,109

1)	STRABAG SE Semi-Annual Report 2020 as published in August 2020

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Summarised statement of financial position

In € thousand

STRABAG SE¹⁾

30/6/2020

31/12/2019

Cash and cash equivalents

2,019,596

2,460,814

Other current assets

4,782,118

4,540,145

Current assets

6,801,714

7,000,959

Non-current assets

5,147,915

5,249,852

Total assets

11,949,629

12,250,811

Current financial liabilities

155,965

355,509

Other current liabilities

5,700,032

5,694,876

Current liabilities

5,855,997

6,050,385

Non-current financial liabilities

1,004,711

1,066,698

Other non-current liabilities

1,294,970

1,277,829

Non-current liabilities

2,299,681

2,344,527

Total liabilities

8,155,678

8,394,912

Net assets

3,793,951

3,855,899

1)	STRABAG SE Semi-Annual Report 2020 as published in August 2020

All other financial assets accounted for using the equity method are negligible from the perspective of the Group when considered individually and are stated in aggregate form.

The financial statements of the associates most recently published have been used for the purpose of the accounting using the equity method, and have been adjusted based on any essential transactions between the relevant reporting date and 31 December 2020.

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Summary of information on associated companies not material on a stand-alone basis
In € thousand	1–12/2020	1–12/2019
Group’s share of profit from continuing operations	10,827	6,693
Group’s share of loss from continuing operations	–36	0
Group’s share of other comprehensive income	–357	1,453
Group’s share of total comprehensive income	10,434	8,145

Associates

Associates are all the entities over which UNIQA has significant influence but does not exercise control or joint control over their financial and operating policies. This is generally the case as soon as there is a voting share of between 20 and 50 per cent or a comparable significant influence is guaranteed legally or in practice via other contractual regulations.

Equity method

Investment in associates is accounted for using this method. The value carried corresponds to the Group’s proportional equity in these companies. In the case of shares in companies that prepare their own consolidated financial statements, their Group equity is assessed accordingly in each case. Within the scope of ongoing measurement, this value must be updated to incorporate proportional changes in equity with the share of net income/(loss) being allocated to consolidated profit/(loss).

Acquisition costs

The amount paid to acquire an asset in cash or cash equivalents or the fair value of another form of compensation at the time of acquisition.

Associates

Fair value

The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.

Equity method