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Initial application of IFRS Accounting Standards, interpretations, and amendments in the financial year

Initial application of IFRS Accounting Standards, interpretations, and amendments in the financial year

 

 

 

 

 

Pronouncement

Title

To be applied by Deutsche Telekom from

Changes

Impact on the presentation of Deutsche Telekom’s results of operations and financial position

IFRS Accounting Standards endorsed by the EU

Amendments to IFRS 16

Lease Liability in a Sale and Leaseback

Jan. 1, 2024

The amendments require a seller-lessee, when subsequently measuring lease liabilities arising from sale-and-leaseback transactions, to determine “lease payments” and “revised lease payments” in a way that it does not recognize any amount of the gain or loss that relates to the right of use it retains. The amendments can particularly affect sale-and-leaseback transactions which include variable lease payments that do not depend on an index or interest rate.

No material impact.

Amendments to IAS 1

Classification of Liabilities as Current or Non-current

Jan. 1, 2024

The amendments clarify that the classification of liabilities as current or non-current should be based on rights that are in existence at the end of the reporting period. The amendments also specify the definition of settlement of a liability.

No material impact.

Amendments to IAS 1

Non-current Liabilities with Covenants

Jan. 1, 2024

The amendments clarify that covenants in loan agreements with which an entity is required to comply only after the reporting date do not affect the classification of a liability on the reporting date as current or non-current. By contrast, covenants with which an entity must comply on or before the reporting date affect the classification.

No material impact.

Amendments to IAS 7 and IFRS 7

Supplier Finance Arrangements

Jan. 1, 2024

The subject of the amendments is supplier finance arrangements, especially reverse factoring arrangements. The amendments created additional disclosure requirements in accordance with IAS 7 and IFRS 7 to increase transparency about the impact that supply finance arrangements have on an entity’s liabilities, cash flows, and liquidity risk.

No material impact.