ÖBB Annual Report 2025

217 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 25 The amount of the provision recognized is the best estimate at the reporting date of the expenditure required to settle the present obligation. In doing so, the inherent risks and uncertainties must be taken into consideration in the obligation. If a provision is measured based on estimated cash flows for the fulfillment of the obligation, such cash flows are discounted if the interest effect is material. If it can be assumed that some or all of the provision necessary for the fulfillment of the economic benefits will be reim- bursed by an outside third party, this claim is recognized as an asset when the reimbursement is virtually certain and its amount can be reliably estimated. For further information see Note26.2. Leases Lessee At the inception of the lease, the ÖBB Group assesses whether the contract creates or contains a lease. This is the case when the contract gives the right to control the use of an identified asset for a certain period in exchange for payment of a fee. To assess whether a contract conveys the right to control an identified asset, the ÖBB Group applies the definition of a lease under IFRS16. On the commencement date, the ÖBB Group recognizes an asset for the right of use granted and a lease liability. The right of use is initially measured at its acquisition cost, which is equivalent to the initial measurement of the lease liability, adjusted for any payments made on or before the commencement date, plus any initial direct costs and the estimated costs for dismantling or removing the underlying asset or the site where it is located, less any lease incentives received. Subsequently, the right of use asset is amortized on a straight-line basis from the commencement date to the end of the lease term, unless ownership of the underlying asset is transferred to the ÖBB Group at the end of the lease term or the cost of the right of use reflects the fact that the ÖBB Group will exercise a purchase option. In this case, the right of use asset is amortized over the useful life of the underlying asset, which is determined in accordance with the regulations for property, plant and equipment. In addition, the right of use asset is adjusted for impairment on an ongoing basis where necessary and adjusted for certain remeasurements of the lease liability. For the first time, the lease liability is discounted at the present value of the lease payments not yet made on the provision date at the interest rate underlying the lease or, if this cannot be readily determined, at the incremental borrowing rate of the ÖBB Group. The lease payments included in the measurement of the lease liability include – fixed payments, including de facto fixed payments, – variable lease payments that are linked to an index or (interest) rate, initially measured using the index or (interest) rate applicable on the provision date, – amounts expected to be payable under a guaranteed residual value, and – the exercise price of a purchase or extension option if the ÖBB Group is reasonably certain about exercising it, as well as penalties for early termination of the lease, unless the ÖBB Group is reasonably certain not to terminate it prema- turely. The lease liability is measured at amortized carrying amount using the effective interest method. It is remeasured if the future lease payments change due to a change in an index or (interest) rate, if the ÖBB Group adjusts its estimate of the expected payments under a guaranteed residual value, if the ÖBB Group changes its assessment of whether a purchase, extension or termination option will be exercised, or if a de facto fixed lease liability changes. If the lease liability is remeasured in this way, the carrying amount of the right of use is adjusted accordingly or, if the carrying amount of the right of use has been reduced to zero, the adjustment is recognized in profit or loss. In the Statement of Financial Position, the ÖBB Group recognizes rights of use that do not meet the definition of investment property under property, plant and equipment, and lease liabilities under financial liabilities. The accounting policies for cross-border leasing agreements are presented in Note30.3.