ÖBB Annual Report 2023

Consolidated Financial Statements 246 Österreichische Bundesbahnen-Holding Aktiengesellschaft Consolidated Financial Statements | Group Management Report 28 Other revenue Other revenue includes revenue from telecommunication services, repair services, cleaning and security services and services related to the operation of the container terminals, commissions from ticket issues, services from the travel agency at the station as well as income from services in community and transition stations and the resolution of damage claims with internal and external partners. Invoices are issued in accordance with the contractual agreements. Revenue is recognised when the invoicing is completed. Revenue is deferred on the liabilities side of the statement of financial position to the extent that it is income for a specific period after that date. Performance-related grants Grants related to expenses awarded to the ÖBB Group are recognised in profit or loss and in line with the timing of expenses immediately upon fulfilment of the preconditions. The federal grant pursuant to Section 42 (1) and (2) Federal Railways Act for operations management, inspection, maintenance, fault clearance and repair as well as for expansion and reinvestment (annuity subsidy) is a government grant, as the federal government wishes to promote the expansion of the railway infrastructure through this subsidy, with the result that the ÖBB-Infrastruktur subgroup presents these grants under other operating income. Such grants are not netted against the subsidised expenses in the income statement. See the explanations in Note 32 with regard to the special features of federal grants. Interest and dividends Interest is recognised using the effective interest method in accordance with IFRS 9. Dividends are recognised when the shareholder’s right to receive payment is established. Borrowing costs are capitalised for significant qualifying assets in accordance with IAS 23 “Borrowing Costs”. See Note 14 for further details. Research and development costs In accordance with IAS 38 “Intangible Assets”, research costs refer to original and planned research performed to gain new scientific or technical knowledge and understanding, and they are recognised as expenses in the period in which they were incurred. Development costs are defined as costs incurred for using research findings to achieve technical and commercial feasibility. Should it not be possible to separate development costs from research costs, then development costs are recognised as expenses in the period in which they are incurred, in accordance with IAS 38. Should the capitalisation requirements of IAS 38 be met, development costs are recognised as intangible assets. Tax position Pursuant to Section 50 (2) Federal Railways Act as amended by Federal Law Gazette No. 95/2009, ÖBB-Infrastruktur AG has been exempt from federal taxes with the exception of value-added tax, from federal administrative levies and from court and judicial administrative levies since 2005, insofar as these levies and charges result from the performance of the respective tasks provided for in the Federal Railways Act (partial tax exemption). Essentially, the following areas of ÖBB-Infrastruktur AG have been classified as subject to income tax: – Income from the electric power business – Provision of non-railway infrastructure-related services – Management (including development and sale) of real estate that does not constitute railway assets within the meaning of Section 10a Railway Act – Investment management In December 2005, a contract on group taxation was concluded with ÖBB-Holding AG as head of the tax group and the majority of the ÖBB Group companies as group members. To date, no foreign company is part of the corporate tax group. Rules on tax equalisation were agreed between the head of the tax group and the group companies. The positive tax assessments determined in accordance with these provisions are calculated in accordance with the “stand-alone” method (calculated from the tax independence of the individual group members for calculating the levy). A positive tax result is generally charged at the applicable corporate income tax rate for the year financial statements. In the event of a negative result, the group parent must pay a tax allocation to the group member to the extent that the negative tax result of the group member can effectively be used. The financial claims and obligations arising from the tax group contract forms the basis of the current financial result of each member of the group.