Accounting policies

In accordance with § 53 (6) of the Exchange Rules for the Frankfurter Wertpapierbörse (FWB), Deutsche Telekom AG voluntarily publishes a quarterly financial report that comprises interim consolidated financial statements and an interim Group management report. The interim consolidated financial statements were prepared in accordance with the International Financial Reporting Standards (IFRSs) applicable to interim financial reporting as adopted by the EU. The interim management report for the Group was prepared in accordance with the German Securities Trading Act (Wertpapierhandelsgesetz).

Statement of compliance

The interim consolidated financial statements for the period ended March 31, 2020 are in compliance with International Accounting Standard (IAS) 34. As permitted by IAS 34, it has been decided to publish a condensed version compared to the consolidated financial statements at December 31, 2019. All IFRSs applied by Deutsche Telekom AG have been adopted by the European Commission for use within the EU.

In the opinion of the Board of Management, the reviewed quarterly financial report includes all standard adjustments to be applied on an ongoing basis that are required to give a true and fair view of the results of operations and financial position of the Group. Please refer to the notes to the consolidated financial statements as of December 31, 2019 for the accounting policies applied for the Group’s financial reporting.

Initial application of standards, interpretations, and amendments in the reporting period








To be applied by Deutsche Telekom from


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

Amendments to References to the Conceptual Framework

References to the Conceptual Framework

Jan. 1, 2020

Updating of the cross references to the revised conceptual framework in the corresponding standards and interpretations.

No material impact.

Amendments to IAS 1 and IAS 8

Definition of Material

Jan. 1, 2020

Clarification of the definition of the concept of materiality.

No material impact.

Amendments to IFRS 3

Business Combinations

Jan. 1, 2020

Changes in the definition of a business to clarify whether a business or a group of assets was being acquired.

No material impact.

Amendments to IFRS 9, IAS 39, and IFRS 7

Interest Rate Benchmark Reform

Jan. 1, 2020

Practical expedients for hedge accounting requirements that are mandatory for all hedges affected by the interest rate benchmark reform. Further information on this is also planned.

The effects are detailed in the explanations following this table.

The reform of interbank offered rates (IBORs) is currently generating uncertainty regarding the timing of implementation and the precise content of the planned changes. 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, AUD-LIBOR, CHF-LIBOR, HKD-LIBOR, and NOK-OIBOR). Group Treasury continuously analyzes the latest developments and takes any steps needed to transition to the new interest rate benchmarks. Deutsche Telekom does not expect the changes in the benchmark rates to have a material impact.

For information on hedging relationships, please refer to the section “Disclosures on financial instruments.”

For more information on standards, interpretations, and amendments that have been issued but not yet applied, as well as disclosures on the recognition and measurement of items in the statement of financial position and discretionary decisions and estimation uncertainties, please refer to the section “Summary of accounting policies” in the notes to the consolidated financial statements in the 2019 Annual Report.

Changes in accounting policies and changes in the reporting structure

Deutsche Telekom did not make any major changes to its accounting policies or reporting structure in the reporting period.