Topics filter

Results

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  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.

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.

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

Net assets
Intangible assets, property, plant and equipment, equity-accounted investments, investments in other companies, loans granted to equity-accounted investments, and total net working capital less provisions for decommissioning and restoration obligations
LNG
Liquefied Natural Gas
F&F
Fuels & Feedstock business segment
E&P
Exploration & Production, part of Energy business segment
IASs
International Accounting Standards
EPSA
Exploration and Production Sharing Agreement
E&P
Exploration & Production, part of Energy business segment
CGU
Cash generating unit
C&M
Chemicals & Materials business segment
FVOCI
Fair value through other comprehensive income
FVTPL
Fair value through the statement of profit or loss
ECL
Expected credit losses
ECL
Expected credit losses
OCI
Other comprehensive income
Net income
Net operating profit or loss after interest and tax
IASs
International Accounting Standards
mn
Million