3 – Accounting policies, judgements and estimates
1) Significant judgments and estimates
Preparation of the consolidated financial statements requires management to make estimates and judgments that affect the amounts reported for assets, liabilities, income, and expenses, as well as the amounts disclosed in the notes. These estimates and assumptions are based on historical experience and other factors that are deemed reasonable at the date of preparation of these financial statements. Actual outcomes could differ from these estimates.
Significant estimates and assumptions were required in particular with regards to the effects of the climate crisis and energy transition. These estimates and assumptions are described below in Note 2 – Effects of climate change and the energy transition.
In addition, estimates and assumptions with significant impact on the OMV Group result were made with respect to oil and gas reserves, the recoverability of assets, provisions, lease contracts, and taxes on income. These are described together with the relevant accounting policies in section 2 of this note and highlighted in gray.
2) Significant accounting policies
3) Changes in accounting policies
The Group adopted the following new standards and amendments starting on January 1, 2023:
- IFRS 17 Insurance Contracts and Amendments to IFRS 17
- Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies
- Amendments to IAS 8: Definition of Accounting Estimates
- Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
The amendments did not have any material impact on OMV’s Group financial statements.
Amendments to IAS 12: International Tax Reform Pillar Two Model Rules
The Group has applied the mandatory temporary exception to recognizing and disclosing information about deferred tax assets and liabilities arising from Pillar Two income taxes since the amendments were published in May 2023.
The mandatory temporary exception applies retrospectively. The retrospective application does not have any impact on the Group’s consolidated financial statements because no new legislation to implement the top-up tax was enacted or substantively enacted as of December 31, 2022, in any jurisdiction in which the Group operates and no related deferred tax was recognized on that date.
Voluntary changes in accounting policies
OMV voluntarily changed its accounting policy for the presentation of purchased emissions certificates and provisions for CO2 emissions in the balance sheet. Whereas the assets related to purchased emission certificates were netted with the provisions for CO2 emissions in the past, OMV started presenting these items gross in the balance sheet from December 31, 2023. The reason for the change was to improve the transparency of these balance sheet items. As of December 31, 2023, this change led to an increase in other assets and other provisions of EUR 400 mn.
The following table summarizes the impact on the consolidated statement of financial position of the comparative period. A restated consolidated statement of financial position as of January 1, 2022, was not published in the primary financial statements because the change had only a minor impact on the Group’s assets and liabilities.
In EUR mn |
|
|
|
---|---|---|---|
|
As previously reported |
Adjustments |
As restated |
|
|
|
|
|
2022 |
||
Other assets |
1,198 |
434 |
1,632 |
Current assets |
22,369 |
434 |
22,803 |
Total assets |
56,429 |
434 |
56,863 |
|
|
|
|
Other provisions |
505 |
434 |
939 |
Current liabilities |
13,567 |
434 |
14,001 |
Total equity and liabilities |
56,429 |
434 |
56,863 |
|
|
|
|
|
2021 |
||
Other assets |
621 |
376 |
997 |
Current assets |
18,595 |
376 |
18,971 |
Total assets |
53,798 |
376 |
54,174 |
|
|
|
|
Other provisions |
360 |
376 |
736 |
Current liabilities |
13,677 |
376 |
14,053 |
Total equity and liabilities |
53,798 |
376 |
54,174 |
4) Amendments to IFRSs not yet mandatory
OMV has not applied the following amendments to standards that have been issued but are not yet effective. They are not expected to have any material effects on the Group’s financial statements. EU endorsement is still pending in some cases.
Amendments to IFRSs |
IASB effective date |
---|---|
Amendments to IAS 1: Classification of Liabilities as Current and Non-Current |
January 1, 2024 |
Amendments to IFRS 16: Lease Liability in a Sale and Leaseback |
January 1, 2024 |
Amendments to IAS 1: Non-Current Liabilities with Covenants |
January 1, 2024 |
Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements |
January 1, 2024 |
Amendments to IAS 21: Lack of Exchangeability |
January 1, 2025 |