ÖBB Annual Report 2023

Consolidated Financial Statements 242 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 24 Lessor The ÖBB Group also acts as lessor and classifies each lease as either a finance lease or an operating lease at the inception of the lease. In order to classify each lease, the ÖBB Group has made an overall assessment of whether the lease substantially bears all the risks and rewards incidental to ownership of the underlying asset. If this is the case, the lease is classified as a finance lease; if not, it is an operating lease. In making this assessment, the ÖBB Group considers certain indicators, such as whether the lease will last for most of the useful life of the asset. If it acts as an intermediary lessor, the ÖBB Group accounts separately for the head lease and the sublease. It classifies the sublease on the basis of its right of use under the head lease, rather than on the basis of the underlying asset. If the head lease is a short-term lease to which the ÖBB Group applies the exceptions described above, it classifies the sublease as an operating lease. Lease payments under operating leases are recognised by the Group as income in revenue on a straight-line basis over the term of the lease. Employee benefit commitments The ÖBB Group has only entered into pension obligations granted under individual contracts, including for a former member of the Board of Management. There are otherwise, only defined contribution plans for pensions. In this case, the ÖBB Group makes payments into private-sector or public-sector pension schemes and employee provision funds on the basis of statutory or contractual obligations. Apart from the contribution payments, there are no further payment obligations. The regular contributions are recognised as personnel expenses in the respective period. All other obligations (severance payments for employees whose employment began before 01.01.2003 and anniversary bonuses) result from unfunded defined benefit plans and are accrued accordingly. The ÖBB Group calculates the provision using the projected unit credit method (PUC method) in accordance with IAS 19 (“Employee Benefits”). The remeasurement of net defined benefit obligations contains only actuarial gains or losses. Future obligations are valued according to actuarial principles and are based on an appropriate estimate of the discount factor and salary increases as well as fluctuation. In accordance with this method, the Group recognises actuarial gains and losses from provisions for severance payments in other comprehensive income and those from provisions for anniversary bonuses in personnel expenses. Following legal amendment, employees hired in Austria after 01.01.2003 are covered by a defined contribution plan with regard to obligations from severance payments. Contributions are paid into a defined contribution plan. See Note 26.1 for further details. Changes in existing provisions for decommissioning, restoration and similar obligations In accordance with IAS 16 “Property, Plant and Equipment”, the acquisition cost of property, plant and equipment also includes the initial estimated cost of dismantling and removing the item and restoring the site where it is located. Provisions for decommissioning, restoration and similar obligations are measured in accordance with the provisions of IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”. The effects of changes in the measurement of existing decommissioning, restoration and similar liabilities are accounted for in accordance with IFRIC 1 “Changes in Existing Decommissioning, Restoration and Similar Liabilities”. The regulations provide that any increase in such obligations reflecting the passage of time should be recognised in profit or loss. Measurement changes resulting from changes in the estimated timing or amount of the outflow of resources required to settle the obligation or from a change in the discount rate are added to or deducted from the cost of the related asset in the current period. The amount deducted from the acquisition cost of the asset is not to exceed the carrying amount.