Disclosure Of Material Accounting Policy Information [Text Block]

VERBUND AG - Filing #5873032

Concept	2024-01-01 to 2024-12-31
Disclosure of material accounting policy information [text block]	1.2 Financial reporting principles
Description of accounting policy for borrowing costs [text block]	Borrowing costs are capitalised if there are qualifying assets. A qualifying asset exists at VERBUND if a period of at least twelve months is required until the asset is ready for use or sale. VERBUND’s average monthly borrowing costs in the 2024 reporting period were around 2.0% (previous year: around 2.1%).
Description of accounting policy for borrowings [text block]	8.1 Financial liabilities
Description of accounting policy for business combinations [text block]	VERBUND
Description of accounting policy for contingent liabilities and contingent assets [text block]
Description of accounting policy for decommissioning, restoration and rehabilitation provisions [text block]
Description of accounting policy for deferred income tax [text block]	Körperschaftsteuergesetz
Description of accounting policy for depreciation expense [text block]	Intangible assets
Description of accounting policy for determining components of cash and cash equivalents [text block]	The lock-in period for all current financial investments reported in cash and cash equivalents was less than three months at the time of investment. The cash and cash equivalents in the balance sheet correspond to the cash and cash equivalents in the cash flow statement and qualify as cash and cash equivalents as defined in IAS 7.
Description of accounting policy for emission rights [text block]	Emission allowances
Description of accounting policy for environment related expense [text block]	Effects of climate change
Description of accounting policy for fair value measurement [text block]
Description of accounting policy for finance costs [text block]
Description of accounting policy for financial guarantees [text block]	Valuation allowances are recognised at every reporting date for expected credit losses relating to financial assets classified as measured at amortised cost (AC) and debt instruments classified as measured at fair value through other comprehensive income (FVOCI), receivables under leases, contract assets and financial guarantee contracts.
Description of accounting policy for financial instruments [text block]	The carrying amounts of interests accounted for using the equity method are adjusted to reflect changes in the investee’s net assets in accordance with IAS 28 no later than one quarter following the underlying changes. If VERBUND’s share of losses from an interest accounted for using the equity method corresponds to or exceeds the carrying amount of the equity interest, additional losses are only taken into account and recognised as a liability to the extent that legal or constructive obligations have been entered into or payments have been made for the equity-accounted interest. The carrying amount of the equity interest includes the share accounted for using the equity method plus all non-current interests that are to be allocated to the net investment in the interest accounted for using the equity method based on their economic substance.
Description of accounting policy for financial instruments at fair value through profit or loss [text block]	As a rule, the changes in value of derivative financial instruments associated with closed items on the balance sheet and liabilities measured at fair value through profit or loss are, in principle, also recognised under the other financial result. However, the effects on profit or loss of these two items essentially offset each other and were therefore not included in the above table.
Description of accounting policy for financial liabilities [text block]	8. Liabilities
Description of accounting policy for foreign currency translation [text block]
Description of accounting policy for functional currency [text block]	VERBUND
Description of accounting policy for government grants [text block]
Description of accounting policy for hedging [text block]	5.2 Accounting treatment of hedging relationships
Description of accounting policy for impairment of financial assets [text block]
Description of accounting policy for impairment of non-financial assets [text block]	4.4 Recoverability of non-financial assets
Description of accounting policy for income tax [text block]	The corporate income tax rate applicable to VERBUND AG for the 2024 reporting year was 23.0% (previous year: 24.0%). The following income tax rates are applied by consolidated subsidiaries (depending on the country in which they are domiciled):
Description of accounting policy for investments other than investments accounted for using equity method [text block]	4.6 Other equity interests
Description of accounting policy for leases [text block]
Description of accounting policy for intangible assets and goodwill [text block]
Description of accounting policy for interest income and expense [text block]	All interest expenses incurred were recognised under interest expenses; interest income was recognised partly in interest income and partly under the other financial result.
Description of accounting policy for investments in joint ventures [text block]	VERBUND
Description of accounting policy for offsetting of financial instruments [text block]	Derivative financial instruments with positive fair values are recognised under “Receivables from derivative financial instruments”, while those with negative fair values are recognised under liabilities from derivative financial instruments. If a framework agreement including a netting arrangement has been entered into with a counterparty, the positive and negative fair values of the transactions entered into with the counterparty are offset over the corresponding periods for accounting purposes as the aim is to settle on a net basis.
Description of accounting policy for recognising in profit or loss difference between fair value at initial recognition and transaction price [text block]	Derivative financial instruments
Description of accounting policy for recognition of revenue [text block]
Description of accounting policy for segment reporting [text block]	Segment reporting
Description of accounting policy for termination benefits [text block]	Personnel provisions
Description of accounting policy for trade and other payables [text block]	6. Working capital