ÖBB Annual Report 2023

Consolidated Financial Statements 228 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 10 IFRS 17 Insurance Contracts (including the amendments from June 2020 and December 2021) The new standard sets out the principles for the recognition, measurement, presentation and disclosure of insurance contracts and replaces IFRS 4 Insurance Contracts. Outlook on future IFRS amendments The following standards and interpretations were endorsed by the IASB and endorsed by the EU, except for those specified in Note 2. The option of applying individual standards early was not exercised. The potential impact of the new and amended standards is currently being evaluated. Standards / interpretations Effective as of 1) expected essential impact on the Consolidated Financial Statements Amended standards and interpretations IAS 1 Classification of debt as current or non-current Jan 01, 2024 no IFRS 16 Sale and lease back transactions Jan 01, 2024 no IAS 1 Classification of debt with covenants Jan 01, 2024 no IAS 7/IFRS 7 Supplier financing agreements Jan 01, 2024 2) no IAS 21 Lack of exchangeability Jan 01, 2025 2) no 1) Applicable for financial years starting on or after the date indicated. 2) Not yet endorsed by the EU. The amendment to IFRS 16 contains requirements for the subsequent measurement of leases under a sale and leaseback for seller-lessees. This is primarily intended to standardise the subsequent measurement of leasing liabilities in order to prevent inappropriate profit realisation. In principle, the amendment means that the payments expected at the beginning of the term must be taken into account in the subsequent measurement of lease liabilities in the context of a sale and leaseback arrangement. In each period, the lease liability is reduced by the expected payments and the difference to the actual payments is recognised in profit or loss. The effect of the amendments to IFRS 16 is currently being evaluated in the ÖBB Group. There are no other standards that are not yet effective and are expected to have a material effect on the ÖBB Group in the current or future reporting period and on expected future transactions. 2. Consolidation and basis of consolidation Consolidation principles Reporting date The reporting date for all fully consolidated companies included in the consolidated financial statements is 31.12. Foreign currency conversion Foreign currencies are translated in accordance with the functional currency concept. The functional currency of all subsidiaries included in the Consolidated Financial Statements is the respective national currency. The Consolidated Financial Statements are presented in Euro, the functional currency of the parent company. Foreign currency transactions are first translated into the functional currency by the Group companies at the spot rate applicable on the date of the transaction. Monetary assets and liabilities denominated in a foreign currency are translated into the functional currency at each reporting date at the respective spot rate. Translation differences from financial assets and financial liabilities are recognised in the financial expenses or financial income as relevant. Non-monetary items measured at historic acquisition and production cost denominated in a foreign currency are translated at the rate applicable on the date of the transaction. Non-monetary items measured at fair value denominated in a foreign currency are translated at the rate applicable at the time the fair value is determined. The annual financial statements of the foreign subsidiaries included in the consolidated financial statements are translated as follows: Assets and liabilities are valued at the foreign currency reference rates of the Austrian National Bank (OeNB) on the reporting date. The items of the income statement. are translated at the annual average rates. Any differences arising from currency translation are recognised in other comprehensive income. As long as the subsidiary is included in the basis of consolidation, the translation differences are continued in other comprehensive income and thus in consolidated shareholders’ equity. If subsidiaries leave the basis of consolidation, the corresponding translation differences are recognised in the consolidated net income.