ÖBB Annual Report 2025

Consolidated Financial Statements 204 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 12 If the Group loses control of a subsidiary, it derecognizes the assets and liabilities of the subsidiary and other equity com- ponents. Accounting policies are applied consistently by all subsidiaries in the ÖBB Group. Business combinations Business combinations are accounted for according to the purchase method. The acquisition costs are measured at the total of the consideration transferred, measured at fair value at the acquisition date, plus the share of non-controlling interests in the acquired company. For each business combination, the acquirer measures the share of non-controlling interests in the acquired company at the corresponding share of the identifiable net assets of the acquired company. Any costs incurred in the course of the business combination are recognized as an expense in other operating expenses. When an entity is acquired, the Group assesses the suitable classification and designation of the financial assets acquired and liabilities assumed in accordance with the contractual terms, economic circumstances, and general conditions given at the time of the acquisition. This also includes a separation of the derivatives embedded in a host contract. In case of business combinations carried out in stages, the equity share in the acquired company previously held by the acquirer is re-measured at fair value at the time of the acquisition, and the resulting profit or loss is recognized in profit or loss in the current period. Any agreed contingent consideration is recognized at the fair value at the time of the acquisition. Subsequent changes in the fair value of a contingent consideration, which constitutes an asset or a liability, are recognized either in the Income Statement or in other comprehensive income according to IFRS 9 “Financial Instruments.” Contingent consideration classified as an equity instrument is not remeasured, and its payment is accounted for in equity. At initial recognition, goodwill is measured at cost, determined as the excess amount of the total consideration transferred plus the amount of the share of the non-controlling interests over the identifiable assets acquired and liabilities assumed. If this consideration is less than the fair value of the net assets acquired, the difference is recognized in profit or loss. After the initial recognition, goodwill is measured at cost less cumulative impairment charges. For the purposes of the impairment test, the goodwill acquired as part of a business combination is allocated from the acquisition date to the Group’s cash-generating units, which are expected to generate synergies from the business combi- nation. This applies irrespective of whether other assets or liabilities of the acquired company are allocated to these cash- generating units. When goodwill has been allocated to a cash-generating unit and a business unit of it is sold, the goodwill attributable to this business unit is taken into account in determining the carrying amount of the business unit and the proceeds from the sale of this business unit. The amount of the goodwill sold is determined on the basis of the relative values of the business unit sold and the remaining part of the cash-generating unit. Transactions with non-controlling interests without loss of control Transactions with non-controlling interests without loss of control are treated as transactions with Group equity holders. A difference arising from the acquisition of a non-controlling interest between the paid service and the relevant share of the net carrying amount of the subsidiary is recognized in equity. Gains and losses arising on the disposal of non-controlling interests are also recognized in equity. Associated companies An associated company is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not control or joint control over the decision- making processes. Interest in associated companies is included in the Consolidated Financial Statements using the equity method of account- ing, except for investments classified as equity instruments measured at fair value in accordance with IFRS 9. Initial recognition is at acquisition cost. This is subsequently adjusted to reflect changes in the share of the ÖBB Group in the net assets after the