ÖBB Annual Report 2025

209 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 17 Asset-related grants, in particular investment grants, are deducted directly from the cost of the related assets (property, plant and equipment or intangible assets). The amortization net of income from the reversal of these grants is recognized in the Consolidated Income Statement. In principle, investment grants are amortized over the useful life of the asset for which the grant was received. Upon disposal of assets to which the investment grants were allocated, the investment grants are recognized together with the sold or retired carrying amounts as other operating income or other operating expenses. The development of investment grants is shown in the schedule of property, plant and equipment. The main investment grant providers are the Republic of Austria, the former Eisenbahn-HochleistungsstreckenAG and Schieneninfrastrukturfi- nanzierungs-GmbH. Subsidies from third parties Subsidies for the construction costs of property, plant and equipment (e.g. avalanche barriers), usually from government- related companies, are recognized in the balance sheet and deducted from the subsidized assets on the assets side. Sub- sidies granted to third parties are recognized as intangible assets to the extent that they will generate benefits in future periods. Subsidies paid to joint ventures (Galleria di Base del Brennero – Brenner Base Tunnel BBT SE) are reported under intangible assets in the item “Investment grants to third parties.” As the federal government is financing the expansion of the Brenner Base Tunnel in full, it is providing corresponding subsidies (in the form of a 50-year annuity). These are also recognized under intangible assets in the item “Investment grants to third parties” as investment grants received. Goodwill and other intangible assets Goodwill The positive difference between the cost of acquisition of a company and the fair value of the interest of the ÖBB Group in the net assets of the acquired company at the time of acquisition constitutes the goodwill. Goodwill generated through the acquisition of a company is recognized in intangible assets. Impairment reversals are not permitted. For the purpose of impairment testing, the goodwill is allocated to cash-generating units. If indications of impairment are identified, goodwill is tested for impairment in addition to the annual impairment test. Impairment reversals are not permitted. For the purpose of impairment testing, the goodwill is allocated to cash-generating units (CGUs). Allocations are made to those cash- generating units or groups of cash-generating units that are expected to benefit from the business combination that gen- erated the goodwill. Other intangible assets The ÖBB Group does not account for any significant other intangible assets with indefinite useful lives. Amortized intangible assets are recognized at acquisition cost less amortization on a straight-line basis. Amortization of intangible assets is calculated on a straight-line basis over the estimated useful life, and depreciation and is stated in the line item “Depreciation and amortization” in the Consolidated Income Statement. The scheduled straight-line depreciation and amortization in the 2025 financial year is based on the following useful lives, which are unchanged from the prior year: Years Investment grants 3–80 Concessions 2–20 Development costs 4 Software 2–20 Other intangible assets 5–20 In principle, investment grants are amortized over the useful life of the asset for which the grant was received.