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Accounting policies

In accordance with § 115 et seq. of the Securities Trading Act (Wertpapierhandelsgesetz – WpHG), Deutsche Telekom AG’s half-year financial report comprises interim consolidated financial statements and an interim management report for the Group as well as a responsibility statement pursuant to § 297 (2) sentence 4 and § 315 (1) sentence 5 of the German Commercial Code (Handelsgesetzbuch – HGB). 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 as of the reporting date. The interim management report for the Group was prepared in accordance with WpHG.

Statement of compliance

The interim consolidated financial statements for the period ended June 30, 2022 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, 2021. 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 half-year 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, 2021 for the accounting policies applied for the Group’s financial reporting.

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

 

 

 

 

 

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

IFRSs endorsed by the EU

 

 

 

Amendments to IAS 16

Proceeds before Intended Use

Jan. 1, 2022

The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The definition of the costs of testing is clarified. Revenue and cost that relate to items produced that are not an output of the entity’s ordinary activities must be presented separately. The line item in the statement of comprehensive income that includes such revenue must be stated.

No material impact.

Amendments to IAS 37

Provisions, Contingent Liabilities and Contingent Assets

Jan. 1, 2022

Clarification that the cost of fulfilling a contract includes all directly attributable costs. The cost of fulfilling the contract includes both the incremental costs of fulfilling that contract (such as direct wage and material costs) and an allocation of other costs that relate directly to fulfilling contracts. In addition, it is clarified that before a provision for an onerous contract is established, an entity should recognize any impairment loss that has occurred on assets used in (previously: dedicated to) fulfilling the contract.

No material impact.

Amendments to IFRS 3

Reference to the Conceptual Framework

Jan. 1, 2022

Reference to the revised IFRS Conceptual Framework was included. Requirement that, for identifying liabilities within the scope of IAS 37 or IFRIC 21, an acquirer should apply IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed in a business combination. Addition of an explicit statement that an acquirer should not recognize contingent assets acquired in a business combination.

No material impact.

Annual Improvements Project

Annual Improvements to IFRSs 2018-2020 Cycle

Jan. 1, 2022

Revision of specific aspects in IFRS 1, IFRS 9, IFRS 16, and IAS 41.

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 2021 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.