New and amended accounting policies
CHANGES IN ACCOUNTING POLICIES
The company adopted the following new and amended International Financial Reporting Standards which are mandatory for the first time for the financial year beginning 1 January 2019:
- IFRS 16 Leases
- IFRIC 23 Uncertainty over Income Tax Treatments
- Amendments to IAS 19: Plan Amendment, Curtailment or Settlement
- Amendments to IAS 28: Long-term Interests in Associates and Joint Ventures
- Amendments to IFRS 9: Prepayment Features with Negative Compensation
-
Annual Improvements to IFRSs (2015–2017 Cycle)
Except as outlined in the following, the above-mentioned amendments did not have a significant impact on the financial position, results of operations or cash flows of Flughafen Zürich AG for financial year 2019:
IFRS 16 Leases
IFRS 16 replaces IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases—Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to recognise most leases in the balance sheet.
For lessors, IFRS 16 leaves lease accounting essentially unchanged compared with IAS 17. Lessors will continue to classify leases as operating leases or finance leases, applying similar principles to those in IAS 17. IFRS 16 therefore had no impact on leases where the group is the lessor.
On initial application of IFRS 16 at 1 January 2019 (date of initial application), Flughafen Zürich AG chose the modified retrospective approach, under which the Standard is applied retrospectively by recognising the cumulative effect of initially applying the Standard at the date of initial application.
The effects of initially applying IFRS 16 at 1 January 2019 are as follows:
|
(CHF 1,000) |
|
01.01.2019 |
|
Property, plant and equipment |
|
|
|
Transfer of leased assets to right-of-use assets |
|
–2,359 |
|
Right-of-use assets |
|
|
|
Transfer of leased assets from property, plant and equipment |
|
2,359 |
|
Effect of the initial application from IFRS 16 |
|
41,894 |
|
Increase in total assets |
|
41,894 |
|
|
|
|
|
Lease liabilities (current and non-current) |
|
|
|
Effect of the initial application from IFRS 16 |
|
41,894 |
|
Increase in total liabilites |
|
41,894 |
|
|
|
|
|
Change in equity |
|
0 |
Prior to the initial application of IFRS 16, Flughafen Zürich AG classified its leases (as lessee) either as a finance lease or an operating lease at inception of the contract. On initial application of IFRS 16, the group recognised and measured all leases (with the exception of short-term leases) by applying a single model.
The Standard contains specific transition guidance and practical expedients, which were applied in Flughafen Zürich AG’s consolidated financial statements:
- The company did not change the original carrying amounts of assets and liabilities under leases that were previously classified as finance leases.
- The company recognised right-of-use assets and liabilities for leases (with the exception of short-term leases) that were previously classified as operating leases. An amount equal to the corresponding lease liabilities was in each case recognised when measuring right-of-use assets. Initial application therefore has no effect on retained earnings. Lease liabilities were measured at the present value of the remaining lease payments, discounted using the incremental borrowing rate of 0.0% at the date of initial application.
In addition, Flughafen Zürich AG chose to apply the following practical expedients:
- The company applied the exemption for short-term leases to leases for which the lease term ends within twelve months of the date of initial application.
- The company did not include initial direct costs when measuring the right-of-use asset at the date of initial application.
Initial application of IFRS 16 at 1 January 2019 impacted on the consolidated financial statements of Flughafen Zürich AG as follows:
- Right-of-use assets amounting to CHF 41.9 million were recognised in the consolidated financial statements and presented under “Right-of-use assets”. This figure includes leased assets amounting to CHF 2.4 million that were previously recognised as finance leases.
- Additional lease liabilities totalling CHF 41.9 million were recognised as current and non-current lease liabilities.
The lease liabilities at 1 January 2019 can be reconciled to the obligations under operating leases at 31 December 2018 as follows:
|
(CHF 1,000) |
|
Total |
|
Obligations under operating leases as at 31 December 2018 |
|
0 |
|
Leases previously not recognised 1) |
|
–41,894 |
|
Liabilities under leases previously classified as finance leases (aircraft energy supply system) |
|
–3,010 |
|
Lease liabilities as at 1 January 2019 |
|
–44,904 |
1) Due to the incremental borrowing rate of 0.0% applied at the date of initial application of IFRS 16, the present value stated in the balance sheet for previously unrecognised leases is also the nominal amount of the future lease payments.
INTRODUCTION OF NEW STANDARDS IN 2020 AND LATER
The new, revised and amended standards and interpretations issued by the end of 2019 and set out in the table below are not yet effective and were not applied early in these consolidated financial statements.
|
Amendments to standards and interpretations |
|
|
|
Effective date |
|
Planned application by Flughafen Zürich AG |
|
Amendments to IAS 1 and IAS 8: Definition of materiality |
|
* |
|
1 January 2020 |
|
Financial year 2020 |
|
Amendments to IFRS 3: Definition of a business |
|
* |
|
1 January 2020 |
|
Financial year 2020 |
|
Amendments to references to the conceptual framework in IFRS standards |
|
* |
|
1 January 2020 |
|
Financial year 2020 |
|
Amendments to IAS 1: Requirements for classifying liabilities as current or non-current |
|
* |
|
1 January 2022 |
|
Financial year 2022 |
|
|
|
|
|
|
|
|
* No, or no significant, impact is expected on the consolidated financial statements of Flughafen Zürich AG.
