ÖBB Annual Report 2023

237 Consolidated Financial Statements Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 19 Non-current assets and liabilities held for sale and disposal groups held for sale A reclassification from non-current assets to non-current assets held for sale and from non-current liabilities to non-current liabilities held for sale is only made if a corresponding Supervisory Board resolution has been passed and a sale is also expected within twelve months. Non-current assets and liabilities held for sale as well as non-current groups of assets and liabilities held for sale are measured at the lower of carrying amount and fair value less costs of sale. Assets classified as held for sale are not subject to further depreciation and are shown as a separate item in the statement of financial position. Gains or losses from the sale of these assets and liabilities are reported together with gains and losses from the disposal of property, plant and equipment and intangible assets as other operating income or expenses or in the other financial result as far as participations are concerned. See Note 19 for more information. Financial instruments Recognition and de-recognition Financial assets and liabilities are recognised when the ÖBB Group becomes a party to the contractual provisions financial instrument. Financial assets are de-recognised when: – all the contractual rights to the cash flows from the financial asset have expired or been settled or – all opportunities and risks resulting from the asset have been transferred to another party or – the power to control the financial asset has been transferred to another party in its entirety. A financial liability may only be de-recognised from the statement of financial position when it has been extinguished, i.e. when the contractual obligation has either been settled or cancelled or has expired. Regular purchases and sales of financial assets are recognised at the settlement date (date of fulfilment), derivative financial instruments are recognised at the date of conclusion (trade date). Financial assets and liabilities are initially recognised at the fair value of the consideration given or received. Transaction costs are included in the initial recognition, except in the case of financial instruments measured at fair value through profit or loss. Classification and measurement of financial assets The ÖBB Group classifies financial assets into the following measurement categories: – measured at amortised cost – measured at fair value through equity (FVOCI) – measured at fair value through profit or loss (FVTPL) The classification and measurement of financial assets with borrowing characteristics depends on the company’s business model for managing financial assets and contractual cash flows. The ÖBB Group only reclassifies debt instruments if the business model for managing these types of assets changes. As no debt instruments are currently held at fair value through other comprehensive income in the ÖBB Group, no further explanation is required. Debt instruments measured at amortised cost A debt instrument is measured at amortised cost if both following conditions are met: – The asset is held within the framework of a business model whose objective is to collect contractual cash flows from the assets held. – The contractual terms financial asset result in cash flows at specified points in time that represent only principal and interest payments on the outstanding principal amount. Interest income from these financial assets is stated in the financial result using the effective interest method.