Accounting policies
In accordance with § 115 et seq. of the German Securities Trading Act (Wertpapierhandelsgesetz – WpHG), Deutsche Telekom AG’s half-year financial report comprises interim consolidated financial statements and an interim Group management report 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 the German Securities Trading Act.
Statement of compliance
The interim consolidated financial statements for the period ended June 30, 2024 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 as of December 31, 2023. 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 interim financial statements as of December 31, 2023 for the summary of accounting policies used in the consolidated financial statements.
Initial application of standards, interpretations, and amendments in the reporting period
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Pronouncement |
Title |
To be applied by Deutsche Telekom from |
Changes |
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 |
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 “changed 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 amendment also specifies 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. |
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 2023 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.