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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 IFRS® Accounting Standards (hereinafter referred to as “IFRS Accounting Standards”) issued by the International Accounting Standards Board (IASB) and the IFRIC® Interpretations of the IFRS Interpretations Committee and applicable to interim financial reporting as adopted by the EU as of the reporting date. The interim management report for the Group was prepared in accordance with the German Securities Trading Act.

Statement of compliance

The interim consolidated financial statements for the period ended March 31, 2026 are in compliance with IAS 34 Interim Financial Reporting. As permitted by IAS 34, it has been decided to publish a condensed version compared to the consolidated financial statements as of December 31, 2025. All IFRS Accounting Standards 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 adjustments to be applied 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, 2025 for the summary of accounting policies used in the consolidated interim financial statements.

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

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

 

 

 

 

 

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 9 and IFRS 7

Amendments to the Classification and Measurement of Financial Instruments

Jan. 1, 2026

The amendments

  • clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
  • clarify the date of recognition and derecognition of certain financial assets and liabilities, with a new option for the date of derecognition of financial liabilities settled using an electronic payment system; and
  • add disclosure requirements for investments in equity instruments designated at fair value through other comprehensive income, and for financial instruments with contingent cash flows (including those with environmental, social, and governance (ESG)-linked features).

No material impact.

Amendments to IFRS 9 and IFRS 7

Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-dependent Electricity

Jan. 1, 2026

The amendments and clarifications relate to the accounting of nature-dependent electricity contracts, structured as power purchase agreements, and include:

  • clarifying the application of the ‘own-use’ requirements (own-use exemption);
  • applying hedge accounting if these contracts are used as hedging instruments; and
  • adding new disclosure requirements to disclose the effects of these contracts on the Company’s financial performance and future cash flows.

The amendments enable Deutsche Telekom, in the event of an increase in its share of long-term power purchase agreements from renewable energy sources in line with the Group’s sustainability-related goals, to substantially reduce potential volatility in the income statement in the future.

Annual Improvements to IFRS Accounting Standards

Annual Improvements to IFRS Accounting Standards – Volume 11

Jan. 1, 2026

These amendments entail minimal adjustments to and clarifications of the wording of the following standards: IFRS 1, IFRS 7, IFRS 9, IFRS 10, and IAS 7.

No material impact.

For further 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 2025 Annual Report.

Changes in accounting policies and changes in the reporting structure

Deutsche Telekom did not make any major changes to its accounting policies in the reporting period. The following change was made to the reporting structure:

Change to the definition of service revenue. Since January 1, 2026, certain wholesale voice transit revenues have no longer been included in service revenues due to their unpredictable or non-recurring nature. Instead, they are recognized under non-service revenues. Prior-year comparatives in both of the affected segments, Germany and Europe, were adjusted retrospectively.

For further information, please refer to the section “Net revenue.”

Wholesale
Refers to the business of selling services to telecommunications companies which sell them to their own retail customers either directly or after further processing.
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