Use of judgements and estimates

The Consolidated Financial Statements require the Group Management Board to make judgements, estimates and assumptions that relate to the application of accounting policies and the amounts stated for the assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and their underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recorded prospectively. Risks related to the consequences of climate change were taken into account in the measurement of assets and liabilities, such as in the context of the impairment test for assets as well as in the calculation of technical provisions.

Discretionary judgements and assumptions regarding the future which could have a significant impact on these Consolidated Financial Statements are described in the following notes:

Note 1: Investment property (assumptions used in determining fair values)

Note 2: Financial assets accounted for using the equity method (assumptions and models used in STRABAG SE’s earnings estimates)

Note 3: Other investments and unit-linked and index-linked life insurance investments (determination of fair values)

Note 5 and Note 43: Technical provisions (assumptions and models used in calculating actuarial provisions)

Note 11: Intangible assets (assumptions used in determining goodwill)

Note 17: Deferred taxes (assessment of the ability to realise deferred tax assets)

Note 18: Defined benefit plans (calculation of the present value of the defined benefit obligations)

The following table provides a summary of the measurement standards for the individual asset and liability items:

Statement of financial position item

Assets

Standard of measurement

Property, plant and equipment

Amortised cost

Intangible assets

 

- with determinable useful life

Amortised cost

- with indeterminable useful life

At lower of acquisition cost or recoverable amount

Investments

 

Investment property

Amortised cost

Financial assets accounted for using the equity method

At lower of amortised pro-rata value of the equity or recoverable amount

Other investments

 

- Financial assets at fair value through profit or loss

Fair value

- Financial assets held for sale

Fair value

- Loans and receivables

Amortised cost

Unit-linked and index-linked life insurance investments

Fair value

Reinsurers’ share of technical provisions

As per the measurement of technical provisions

Reinsurers’ share of technical provisions for unit-linked and index-linked life insurance

As per the measurement of technical provisions

Receivables, including insurance receivables

Amortised cost

Income tax receivables

At the amount of any expected claims to the tax authorities, based on the tax rates applicable on the reporting date or in the near future

Deferred tax assets

Undiscounted measurement applying the tax rates that are expected for the period in which an asset is realised or a liability met

Cash

Amortised cost

Assets in disposal groups held for sale

Lower of carrying amount and fair value less cost to sell

Liabilities

Standard of measurement

Subordinated liabilities

Amortised cost

Technical provisions

Property insurance: provisions for losses and unsettled claims (undiscounted value of expected future payment obligations)
Life and health insurance: liability for remaining coverage in accordance with actuarial calculation principles (discounted value of expected future benefits less premiums)

Technical provisions for unit-linked and index-linked life insurance

Liability for remaining coverage based on the change in value of the contributions assessed

Financial liabilities

 

- Liabilities from bonds and loans

Amortised cost

- Derivative financial instruments

Fair value

- Lease liabilities

Amortised cost

Other provisions

 

- from defined benefit obligations

Actuarial measurement applying the projected benefit obligation method

- other

Present value of future settlement value

Liabilities and other items classified as liabilities

Amortised cost

Income tax liabilities

At the amount of any obligations to the tax authorities, based on the tax rates applicable on the reporting date or in the near future

Deferred tax liabilities

Undiscounted measurement applying the tax rates that are expected for the period in which an asset is realised or a liability met