ÖBB Annual Report 2023

229 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 11 As the principal market of the ÖBB Group is in Austria, sales in foreign currencies account only for a small proportion of transactions. The exchange rates of major currencies have developed as follows (Source: European Central Bank [ECB] reference rates pursuant to www.oenb.at ): Reporting date rate Annual average rate rounded in EUR Dec 31, 2023 Dec 31, 2022 2023 2022 Bosnia and Herzegovina Convertible Mark (BAM) 1.956 1.956 1.956 1.956 Bulgarian Lev (BGN) 1.956 1.956 1.956 1.956 Croatian Kuna (HRK) not specified 7.537 not specified 7.535 New Turkish Lira (TRY) 32.653 19.965 25.760 17.409 Polish Zloty (PLN) 4.340 4.681 4.542 4.686 Romanian Leu (RON) 4.976 4.950 4.947 4.931 Russian Ruble (RUB) 98.591 77.299 92.952 71.878 Swiss Francs (CHF) 0.926 0.985 0.972 1.005 Czech Korunas (CZK) 24.724 24.116 24.004 24.566 Hungarian Forint (HUF) 382.800 400.870 381.850 391.290 US Dollar (USD) 1.105 1.067 1.081 1.053 Consolidation Subsidiaries (capital consolidation) Subsidiaries are entities controlled by the Group. The Group controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power of control over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date the Group obtains control until the expiration of control. Accordingly, the results of operations of the businesses acquired or sold during the reporting year are included in the Consolidated Statement of Comprehensive Income from the date of acquisition or until the date of disposal respectively. If the Group loses control over a subsidiary, the assets and liabilities of the subsidiary and other components of equity are de-recognised. Accounting policies are applied consistently by all subsidiaries in the ÖBB Group. Corporate mergers Company mergers are accounted for using the purchase method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at fair value at the acquisition date, and the non-controlling interest in the company being acquired. Whenever a company merger occurs, the acquirer measures the shares of non-controlling shareholders in the acquired company at the corresponding share of the identifiable net assets of the acquired company. Costs incurred as part of the business combination are recognised as an expense and reported in other operating expenses. When the Group acquires a business, it assesses the appropriate classification and designation financial assets acquired and liabilities assumed in accordance with the contractual terms, economic circumstances and conditions prevailing at the acquisition date. This also includes a separation of derivatives embedded in underlying contracts. When business combinations are achieved in successively, the acquirer’s former equity interest in the acquiree is remeasured to fair value at the acquisition date and the resulting gain or loss is recognised in profit or loss. Any agreed contingent consideration is recognised at fair value at the acquisition date. Subsequent changes in the fair value of a contingent consideration that is an asset or liability are recognised either in profit or loss or in other comprehensive income in accordance with IFRS 9 “Financial Instruments“. Contingent consideration classified as an equity instrument is not remeasured, its subsequent settlement is accounted for in equity. Goodwill is initially recognised at cost, which is measured as the excess of the consideration transferred and the amount of non-controlling interests over the identifiable assets acquired and liabilities assumed. When this consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised in the income statement. After initial recognition, goodwill is measured at cost less accumulated impairment losses.