ÖBB Annual Report 2023

233 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 15 Asset-related subsidies (investment grants) Government Grants Subsidies granted to the ÖBB Group (investment grants) are recognised in the financial statements if there is certainty that the payment will be made and the necessary conditions for the receipt of the subsidies are met. The asset-orientated grants, primarily investment grants, are deducted directly from the subsidised assets (property, plant and equipment or intangible assets) on the assets side. The depreciation expenses less income from the amortisation of these investment grants are recognised in the Consolidated Income Statement. In principle, investment grants are amortised over the useful life of the asset for which the grant was received. When assets are disposed of that were allocated investment grants, then these are recognised together with the sold or retired carrying amounts as other operating income or other operating expenses. The development of the investment grants is shown in the statement of changes in fixed assets. The main investment contributors are the Republic of Austria, the former Eisenbahn-Hochleistungsstrecken AG and Schieneninfrastrukturfinanzierungs-GmbH. Third-party grants Grants towards the construction costs of property, plant and equipment (e.g. avalanche barriers), usually from government- related companies, are recognised in the balance sheet and deducted from the subsidised assets on the assets side. Grants awarded to third parties are recognised as intangible assets to the extent that they provide a benefit in future periods. Grants paid to joint ventures (Galleria di Base del Brennero – Brenner Base Tunnel BBT SE) are recognised under intangible assets in the item “Investment grants to third parties”. As the federal government is financing the expansion of the Brenner Base Tunnel in full, it is providing corresponding investment grants (in the form of a 50-year annuity). These are also recognised under intangible assets in the item “Cost contributions to third parties” as cost contributions received. Goodwill and other intangible assets Goodwill Goodwill represents the excess of the cost of the acquisition over the fair value of the ÖBB Group’s share of the net assets of the acquiree at the date of acquisition. Goodwill arising from the acquisition of a company is recognised under intangible assets. Goodwill recognised in the statement of financial position is subject to an annual impairment test and measured at its original acquisition cost less accumulated impairment losses. Reversals of impairment losses are not permitted. Goodwill is allocated to cash-generating units (CGU) for the purpose of impairment testing. The allocation is made to those cash- generating units and groups of cash-generating units that are expected to benefit from the combination in which the goodwill arose. Other intangible assets The ÖBB Group does not recognise any significant other intangible assets with indefinite useful lives. Depreciable intangible assets are recognised at cost less straight-line amortisation. Intangible assets are amortised on a straight-line basis over its estimated useful life, and amortisation is recognised in the line item Depreciation and Amortisation in the Consolidated Income Statement. Scheduled straight-line depreciation in the financial year 2023 is based on the following useful lives, which have not changed significantly compared to the py: Years Investment grants 3–80 Concessions 2–20 Development costs 4 Software 2–20 Other intangible assets 5–20 In principle, investment grants are amortised over the useful life of the asset for which the grant was received.