1.2 Adoption of new and revised accounting standards

Amendments, standards and interpretations adopted for the first time in 2025

At 1 January 2025, the amendments to IAS 21 “Lack of Exchangeability” entered into force and were adopted by the Alpiq Group. As the Group is not exposed to currencies with a lack of exchangeability, the amendments had no impact on the consolidated financial statements.

IFRS Accounting Standards effective in future periods

The IASB has published the following standards and interpretations of relevance to Alpiq:

The Alpiq Group evaluates the implications of newly issued or amended accounting standards that become effective on or after January 1, 2026. Based on the current assessment, no material impact on the Group’s financial position or results of operations is anticipated, with the exception of IFRS 18.

Issued by the IASB in April 2024, IFRS 18 – Presentation and Disclosure in Financial Statements will replace IAS 1 and becomes effective for reporting periods beginning on or after January 1, 2027, with retrospective previous year restatement. Early adoption is allowed. The main changes resulting from the introduction of IFRS 18 are:

• Entities are required to classify all income and expenses in the income statement in five mandatory categories (operating activities, investing activities, financing activities, discontinued operations and income taxes) and present new sub-totals, including “Operating Profit or Loss” and “Profit or Loss Before Financing and Income Taxes”.
• Entities are required to disclose Management-Defined Performance Measures (MPMs), providing definitions, reconciliations to IFRS measures, and context for their use.
• Enhanced guidance is provided for the aggregation and disaggregation of information in the financial statements.
• In addition, amendments to IAS 7 – Statement of Cash Flows remove classification options for interest and dividend cash flows, and standardise their presentation to enhance comparability. The starting point for operating cash flows, when using the indirect method, will be the Operating Profit or Loss sub-total.

Alpiq has completed its assessment of the implications of IFRS 18. The most significant impact arises from the required categorisation of income and expenses into five mandatory categories, which necessitates the redesign of the statement of profit or loss.

With respect to the statement of cash flows, only limited modifications were identified, as the Group’s existing mapping largely aligns with the revised classification principles introduced by the amendments to IAS 7. The only substantive change for the Group will be the requirement to use the “Operating Profit or Loss” subtotal as the starting point for calculating operating cash flows under the indirect method.

Furthermore, certain existing key performance indicators will be designated as Management-Defined Performance Measures (MPMs). As a result, additional disclosures – including definitions, reconciliations and explanatory context – will be required in the notes to the annual report. Alpiq already discloses most of the relevant information in its Financial Review, so the impact will mainly involve incorporating these disclosures into the audited section of the annual report and adapt wording to IFRS 18.