ÖBB Annual Report 2025

Consolidated Financial Statements 216 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 24 Classification and measurement of financial liabilities Financial liabilities are measured at amortized cost or at fair value through profit or loss (FVTPL). A financial liability is classified as an FVTPL if it is classified as held for trading or is a derivative. Financial liabilities (FLAC) are initially measured at their fair value and subsequently at amortized cost using the effective interest rate method. Financial liabilities (FVTPL) are measured at fair value and any gains or losses from the subsequent measurement are recognized in profit and loss in the Income Statement. Fair value of financial instruments The carrying amounts of cash and cash equivalents, trade receivables and payables, receivables due from and liabilities due to related companies approximate their fair values. With the exception of cash and cash equivalents, this is fair value hierarchy Stage 3. The fair value of non-current financial receivables, other financial assets without quoted market prices and financial liabil- ities is based on the present value of future cash flows, discounted at the ÖBB Group’s estimated current interest rate at which comparable financial instruments may be concluded. Existing credit risk is considered when determining the fair values. This is fair value hierarchy Stage 2. The fair value of listed securities and bonds is allocated to either fair value hierarchy Stage 1 or 2 (Note 29.6). If necessary, the fair value of equity instruments is determined using multiples and allocated to fair value hierarchy Stage 3. Inventories Inventories include material and spare parts used for the expansion, maintenance, and repair of defects of the Group’s own railway networks and the technical servicing of rolling stock, and on the other hand for real estate recovery projects. Materials and spare parts are measured at the lower of cost or net realizable value, with cost being determined on the basis of the moving average cost method. The net realizable value is determined based on the estimated selling price in the ordinary course of business, less estimated costs to complete still to be incurred. Self-manufactured inventories and reconditioned reusable materials are capitalized at production cost. Allowances are recorded for obsolete inventory and excessive production cost from self-manufactured inventories. For spare parts and materials, replacement costs are deemed to be the best available measure of their net realizable value. Also presented in inventories is real estate which is no longer used in operations and is now under development for later sale (“real estate recovery projects”). These are former railway station and system facilities or business premises which were used for continuous operations. They consist of major projects, such as the land of the former Südbahnhof and the Frachtenbahnhof (freight station) Wien Nord, which are being developed on a large scale. Real estate recovery projects are either held for sale in the ordinary course of business, or are in the process of being manufactured or in preparation for sale. They are recognized at cost and measured at the reporting date at the lower of carrying amount or net realizable value. The net realizable value is the estimated selling price less expected development and selling costs yet to be incurred. Provisions Provisions are recognized when the ÖBB Group has a present obligation (legal or constructive) arising from a past event and it is probable that the settlement of the obligation will result in an outflow of resources and the amount of the obligation can be measured with sufficient reliability.