Group Financial Statements

Use of discretionary decisions and estimates

The consolidated financial statements require the Group Management Board to make discretionary decisions, 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.

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 (determination of fair values)

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

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

Note 15: Deferred taxes (assessment of the ability to realise deferred tax assets)

Note 17: Defined benefit plans (calculation of the present value of the defined benefit obligations)

The following table provides a summary of the valuation standards for the individual balance sheet items in the assets and liabilities:

Balance sheet item

Assets

Standard of valuation

Property, plant and equipment

At lower of amortised cost or recoverable amount

Intangible assets

 

- with determinable useful life

At lower of amortised cost or recoverable amount

- with indeterminable useful life

At lower of acquisition cost or recoverable amount

Investments

 

Investment property

At lower of amortised cost or recoverable amount

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 valuation of technical provisions

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

As per the valuation 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 valuation applying the tax rates that are expected for the period in which an asset is realised or a liability met

Cash and cash equivalents

Amortised cost

Assets in disposal groups held for sale

Lower of carrying amount and fair value less cost to sale

Liabilities

Standard of valuation

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: insurance provision in accordance with actuarial calculation principles (discounted value of expected future benefits less premiums)

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

Insurance provision based on the change in value of the contributions assessed

Financial liabilities

 

- Liabilities from loans

Amortised cost

- Derivative financial instruments

Fair value

Other provisions

 

- from defined benefit obligations

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