Impairment of assets in accordance with IAS 36

The carrying amounts of non-current non-financial assets (excluding deferred taxes) are assessed once a year for indications of impairment. If there are indications of a potential impairment, impairment tests are performed for cash-generating units (CGU) and non-financial assets in accordance with IAS 36.

An impairment exists if the carrying amount of a CGU or a non-financial asset exceeds its recoverable amount (higher of fair value less costs of disposal and value in use).

The discounted cash flow (DCF) method is used to calculate value in use for CGUs and non-financial assets for which there are indications of a potential impairment or for which an annual impairment test is required. The key assumptions used to determine recoverable amount are disclosed and explained in further detail below:

Investments in airport operator projects

Recoverable amount was determined for investments in airport operator projects as at 31 December 2023 based on value in use calculations using cash flow forecasts from the financial budgets for the remaining terms of the contractually agreed concessions (3 to 26 years). The country-specific WACC applied to the cash flow forecasts ranged from 6.8% to 10.3% (previous year: 9.0% to 10.5%).

Result

As at 31 December 2023, no impairment losses were required to be recognised as a result of the impairment test on the CGUs and non-financial assets for which there were indications of a potential impairment. In the previous year, an impairment loss of CHF 4.3 million was recognised through profit or loss for the airport operator project in Iquique (Chile) (see note 11, Intangible assets).