ÖBB Annual Report 2023

Consolidated Financial Statements 230 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 12 Impairment testing purposes require goodwill acquired in a business merger, from the acquisition date, to be allocated to each of the Group’s cash-generating units expected to benefit from the synergies of the combination. This applies regardless of whether other assets or liabilities of the acquired company are allocated to these cash-generating units. When goodwill has been allocated to a cash-generating unit and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. The value of the portion of goodwill disposed of is determined based on the relative values of the operation disposed of and the portion of the cash-generating unit retained. Transactions with non-controlling shareholders without loss of control Transactions with non-controlling shareholders without loss of control are treated as transactions with equity owners of the Group. Any difference arising on the acquisition of a non-controlling interest between the consideration paid and the relevant share of the carrying amount of the net assets of the subsidiary is recognised in equity. Gains and losses arising on the disposal of non-controlling interests are also recognised in equity. Associated companies An associated company is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but not control or joint control over the decision- making processes. Interest in associated companies are included in the Consolidated Financial Statements using the equity method of accounting, except for investments classified in accordance with IFRS 9 as equity instruments measured at fair value. Initial recognition is at acquisition cost. These are subsequently adjusted for changes in the ÖBB Group’s share of net assets after the acquisition date and adjusted for impairment losses. Losses in excess of the investment in the associated company are not recognised if there is no obligation to make additional contributions. Should the acquisition cost of the ÖBB-Group share be more than the fair values of the identifiable assets and liabilities of the associated company at the date of acquisition, such difference is accounted for as goodwill included in the value of the investment. Should the acquisition cost of the ÖBB Group share be less than the fair values of the identifiable assets and liabilities at the date of acquisition, the difference is recognised in the income statement in the period the acquisition occurred. Joint ventures A joint arrangement is an arrangement in which two or more parties under joint control hold the rights to the net assets under the agreement. A joint venture is a contractual arrangement regarding an economic activity in which two or more parties have joint control. If these rights are included in the net assets of the agreement, and are not rights to its assets and liabilities for its debts, these joint ventures are included in the consolidated financial statements using the equity method.