Initial application of standards, interpretations, and amendments in the financial year
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Pronouncement |
Title |
To be applied by Deutsche Telekom from |
Changes |
Expected impact on the presentation of Deutsche Telekom’s results of operations and financial position |
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IFRSs endorsed by the EU |
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Amendments to IFRS 16 |
Covid-19-Related Rent Concessions/ |
Jan. 1, 2021b |
Practical expedient for lessee accounting of rent concessions granted due to the Covid-19 pandemic. Instead of assessing whether a rent concession is a lease modification, the lessee may account for the changes in lease payments as if they were not lease modifications. |
Practical expedient not applied by Deutsche Telekom. |
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Amendments to IFRS 4 |
Insurance Contracts – deferral of IFRS 9 |
Jan. 1, 2021 |
Deferral of first-time application of IFRS 9 for insurance companies. |
No impact. |
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Amendments to IFRS 9, IAS 39 and IFRS 7, IFRS 4 and IFRS 16 |
Interest Rate Benchmark Reform (Phase 2) |
Jan. 1, 2021 |
The amendments address the impact of modifications of financial instruments required as a direct consequence of the IBOR reform, hedge accounting requirements, and the accompanying disclosures. |
No material impact expected. |
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Thanks to intensive preparatory and implementation work, the reform of interbank offered rates (IBORs) is currently generating low residual risks regarding the timing of implementation and the precise content of the planned changes for individual contracts concluded in foreign currencies. Deutsche Telekom is affected by this uncertainty in its hedging of interest rate and currency risks in designated fair value and cash flow hedges where certain IBORs are part of the hedging relationship (EURIBOR, USD LIBOR, GBP LIBOR, and CHF LIBOR). Group Treasury continuously analyzes the latest developments and takes any additional steps needed to transition to the new reference interest rates. EONIA had already been transitioned to €STR, while specific implementation work for the currencies CHF, GBP, and JPY was successfully finalized by the end of 2021, so that these currencies were effectively transitioned to the new reference interest rates at the start of 2022. The transition date for all other currencies affected by the reform will depend on the relevant market liquidity of the new risk free rates. For the USD LIBOR, the market is expected to make the switch by mid-2023.
For information on hedging relationships, please refer to Note 40 “Financial instruments and risk management.”