Application of new accounting methods

International Financial Reporting Standards (IFRS) applied for the first time in financial year 2020/21

The following amendments to adopted by the International Accounting Standards Board () were applied for the first time in these consolidated financial statements, as they were binding for METRO AG in financial year 2020/21. The initial application of these amendments has no material impact on the consolidated financial statements:

  • IFRS 3 – Business Combinations (revised definition of ‘business’)
  • Amendments to IFRS 9 – Financial Instruments, IFRS 7 – Financial Instruments: Disclosures and IAS 39 – Financial Instruments: Recognition and Measurement (Interest Rate Benchmark Reform – Phase 1)
  • Amendments to IFRS 16 – Leases (amendment concerning Covid-19-Related Rent Concessions beyond 30 June 2021)
  • Amendments to IAS 1 – Presentation of Financial Statements and IAS 8 – Accounting Policies, Changes in Accounting Estimates and Errors (revised definition of ‘material’)
  • Amendments to various IFRS standards due to adjusted references to the Conceptual Framework for Financial Reporting)

In connection with the application of IAS 2, in June 2021 the IFRS Interpretations Committee decided that when calculating the net realisable value of inventories, the estimated necessary selling expenses to be taken into account should not be restricted just to incremental costs. This decision led to a retrospective change to the corresponding accounting method at METRO. Further information on this change is provided in no. 47 – Change in accounting method (inventories).

Accounting standards that were published but are not yet applied in financial year 2020/21

A number of other standards and interpretations amended or newly issued by the IASB were not yet applied by METRO in financial year 2020/21 because they were either not yet mandatory or have not yet been endorsed by the European Commission.

Enlarge table

Standard/Interpretation

Title

Effective date according to IFRS1

Application at METRO AG from2

Endorsed by EU3

Amendments to IFRS 1

Annual Improvements to IFRS Standards 2018–2020 (subsidiary as a first-time adopter)

1/1/2022

1/10/2022

Yes

Amendments to IFRS 3

Business Combinations (Reference to the Conceptual Framework)4

1/1/2022

1/10/2022

Yes

Amendments to IFRS 4

Insurance Contracts (Extension of the Temporary Exemption from Applying IFRS 9)

1/1/2021

1/10/2021

Yes

Amendments to IFRS 9

Annual Improvements to IFRS Standards 2018–2020 (fees in the ‘10 per cent’ test for derecognition of financial liabilities)

1/1/2022

1/10/2022

Yes

Amendments to IFRS 9/IFRS 7/IFRS 16/IAS 39

Financial Instruments (Interest Rate Benchmark Reform – Phase 2)

1/1/2021

1/10/2021

Yes

Amendments to IFRS 10/IAS 28

Consolidated Financial Statements/Investments in Associates and Joint Ventures (Sale or Contribution of Assets between an Investor and its Associate or Joint Venture)4

Unknown5

Unknown5

No

IFRS 17

Insurance Contracts4 – including adopted amendments to the standard

1/1/2023

1/10/2023

No

Amendments to IAS 1

Presentation of Financial Statements (Classification of Liabilities as Current or Non-current)4

1/1/2023

1/10/2023

No

Amendments to IAS 1

Presentation of Financial Statements (Disclosures Regarding Accounting Policies)4

1/1/2023

1/10/2023

No

Amendments to IAS 8

Accounting Policies, Changes in Accounting Estimates and Errors (Definition of Accounting Estimates)4

1/1/2023

1/10/2023

No

Amendments to IAS 12

Income Taxes (deferred taxes related to Assets and Liabilities arising from a Single Transaction)4

1/1/2023

1/10/2023

No

Amendments to IAS 16

Property, Plant and Equipment (Proceeds before Intended Use)

1/1/2022

1/10/2022

Yes

Amendments to IAS 37

Provisions, Contingent Liabilities and Contingent Assets (Onerous Contracts – Costs of Fulfilling a Contract)

1/1/2022

1/10/2022

Yes

Amendments to IAS 41

Annual Improvements to IFRS Standards 2018–2020 (taxation in fair value measurements).4

1/1/2022

1/10/2022

Yes

1

Without earlier application (exception: IFRS 16 – Covid-19-Related Rent Concessions).

2

Application as of 1 October due to deviation of financial year from calendar year, if the approval for use (endorsement) has been granted by the EU.

3

As of: Early November 2021.

4

Official German title not yet known – therefore own translation.

5

Indefinite deferral of effective date by IASB.

Effect of the additional IFRS amendments

The first-time application of the standards listed in the table above as well as amendments to is not expected to have a material impact on the group’s asset, financial and earnings position.

IFRS (International Financial Reporting Standards)
Internationally applicable rules for financial reporting developed by the IASB. Contrary to the accounting rules under the German Commercial Code, the IFRS emphasise the informational function.
Glossary
IASB (International Accounting Standards Board)
An independent international body with head offices in London that develops and continually revises the International Financial Reporting Standards (IFRS).
Glossary
IFRS (International Financial Reporting Standards)
Internationally applicable rules for financial reporting developed by the IASB. Contrary to the accounting rules under the German Commercial Code, the IFRS emphasise the informational function.
Glossary