ÖBB Annual Report 2025

Consolidated Financial Statements 214 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 22 – The asset is held within the framework of a business model whose objective is to collect contractual cash flows from the assets held. – The contractual terms of the financial asset result in cash flows at specified points in time that represent only principal and interest payments on the outstanding principal amount. Interest income from these financial assets is recognized in the financial result using the effective interest method. Trade receivables, other receivables and other financial assets (e.g. securities) are measured at amortized cost less impair- ment. Cash and cash equivalents The ÖBB Group recognizes cash on hand and cash in banks with remaining maturities of up to three months from the time of acquisition as cash and cash equivalents. Money market deposits with terms of more than three months are classified as other current financial assets along with securities. Cash and cash equivalents represent the funds for the Statement of Cash Flows. For further information, see Notes 22 and 33. Trade receivables Trade receivables are recognized from the date on which they arise. Any unconditional right to receive consideration is recognized as a receivable. Trade receivables with no material financing components are measured at the transaction price upon first time recognition. Equity instruments measured at fair value through profit or loss The Group measures all equity instruments held at fair value through profit or loss. Debt instruments measured at fair value through profit or loss A debt instrument that is neither measured at amortized cost nor at fair value through profit or loss is measured at fair value through profit or loss. The ÖBB Group does not hold any debt instruments that are carried at fair value through profit or loss. Derivatives Derivative financial instruments are measured at fair value. Changes in the fair value of derivative financial instruments are recognized in profit or loss or in other comprehensive income, depending on whether the derivative instrument is used to hedge the fair value of an item recognized in the Statement of Financial Position (“fair value hedge”) or fluctuations in future cash flows (“cash flow hedge”). For derivative financial instruments designated to protect balance sheet items, changes of the fair value of the hedged risks and of the derivative financial instrument are recognized in profit or loss. For derivative financial instruments designated as cash flow hedges, changes in the fair value of the effective portion of the hedging instrument are recognized via the other comprehensive income in shareholders’ equity (cash flow hedge reserve). The effects stated in the cash flow hedge reserve are recognized in profit and loss when the hedged item is recognized in profit or loss. Changes in the fair value of the ineffective portion of the hedge and changes in the fair value of derivative financial instruments not classified as a hedge are recognized in profit or loss immediately. Hedge accounting is applied in the ÖBB Group. See Note29.3. on hedge accounting. Non-current derivative financial instruments (interest rate swaps for hedging purposes) are divided into a current and a non-current portion based on the discounted payment streams in the applicable time frames. Impairment of financial assets (IFRS 9) The Group assesses the default risk associated with debt instruments measured at acquisition cost or at fair value through equity on a forward-looking basis. Default risk is the risk of financial losses if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amounts of the financial assets correspond to the maxi- mum default risk. IFRS 9 provides for a general impairment model (three-step model) and a simplified method for determining the expected loss.