8.7Changes in material accounting policies
The following new or amended standards and interpretations became effective in 2025:
New or amended standards and interpretations |
|---|
Lack of Exchangeability (Amendments to IAS 21)1 |
1The application of this new or amended provisions had no significant impact on the consolidated financial statements 2025 and the comparative period.
The new or amended standards and interpretations listed below have been issued by the International Accounting Standards Board (IASB), but are not yet effective:
New or amended standards and interpretations | Effective date | Planned application by Rieter |
|---|---|---|
Amendments to the Classification and Measurement of Financial Instruments—Amendments to IFRS 9 and IFRS 71 | January 1, 2026 | Financial year 2026 |
Contracts Referencing Nature-dependent Electricity—Amendments to IFRS 9 and IFRS 71 | January 1, 2026 | Financial year 2026 |
Annual Improvements to IFRS Accounting Standards—Volume 111 | January 1, 2026 | Financial year 2026 |
IFRS 19 Subsidiaries without Public Accountability: Disclosures1 | January 1, 2027 | Financial year 2027 |
IFRS 18 Presentation and Disclosure in Financial Statements | January 1, 2027 | Financial year 2027 |
1No impact or no significant impact is expected on the consolidated financial statements.
IFRS 18 will replace IAS 1 and is applicable for the first time for the financial year 2027 with mandatory retrospective implementation. The new standard introduces the following new key requirements:
- Entities are required to classify all income and expenses into five categories in the income statement, namely the operating, investing, financing, discontinued operations and income tax categories. Entities are also required to present a newly defined operating profit subtotal. Entities’ net profit will not change.
- Management defined performance measures (MPMs) are disclosed in a single note in the financial statements.
- Enhanced guidance is provided on how to group information in the financial statements.
In addition, all entities are required to use the operating profit subtotal as the starting point for the consolidated cash flow statements when presenting cash flows under the indirect method.
Rieter is still in the process of assessing the impact of the new accounting standard, particularly with respect to the structure of the Group’s income statement, the cash flow statement and the additional disclosures required for MPMs. Rieter is also assessing the impact on how information is grouped in the consolidated financial statements, including for items currently labelled as “other”.