2.1.Standards and interpretations applied or amended and adopted by the EU for the first time

Newly applicable amended standards and interpretations adopted by the EU that take effect on 1 January 2019 or later:

IFRS 16 (Leases)

IFRS 16 was published in January 2016 and replaces IAS 17, IFRIC 4, SIC-15 and SIC-27. The new standard provides that all leases and the contractual rights and obligations associated with them must be reported on the lessee's statement of financial position. The previously different recognition of operating and finance leases under IAS 17 no longer applies. The lessee recognises a right-of-use asset representing its right to use an underlying asset and, at the same time, a lease liability in the amount of the present value of the lease payments. Discounting takes place at the lease-specific interest rate, or the incremental borrowing interest rate if the lease-specific interest rate cannot be determined. Depending on the term, an incremental borrowing interest rate of 1.2% or 1.7% is assumed. The right of use asset must then be amortised and the lease liability carried forward using the effective interest method.

IFRS 16 is not applied to short-term leases and leases concerning an underlying asset of minor value. In accordance with IFRS 16.4, the company has opted out of voluntary application of IFRS 16 for intangible assets. Application takes place with retrospective effect by recognising the accumulated effect at the time of initial application. The standard is applied for the first time in the 2019/2020 fiscal year. The Group applies IFRS 16 to all contracts concluded prior to 1 October 2019 and identified as leases under IAS 17 and IFRIC 4. Current finance leases will be continued; the assets will merely be reclassified as right-of-use assets.

The most important change concerns the Group's head office in Linz. The corporate headquarters building is used on the basis of a lease. A right of use asset and a lease liability in the amount of EUR 39.9 million have been recognised as of 1 October 2019. In the Waste Management Segment, portfolio contracts concerning properties resulted in the recognition of a right-of-use asset and a corresponding liability in the amount of EUR 25.7 million.

In the 2007/2008 fiscal year, plant and equipment assets were sold and leased back for a term of 15 years ("sale-and-leaseback") in the Waste Management Segment. In accordance with IAS 17, the lease was classified as a finance lease. As of 1 October 2019, the carrying amount of the assets of EUR 19.3 million was transferred into a right of use asset. The liability amounts to EUR 46.2 million.

As of 1 October 2019, rights of use assets in an amount of EUR 93.0 million were recognised in the property, plant and equipment item, while lease liabilities in an amount of EUR 120.0 million were recognised in the financial liabilities item.

As of 31 March 2020, the lease liability amounts to EUR 116.7 million (up to 1 year: EUR 6.9 million, 1-5 years EUR 57.2 million, more than 5 years EUR 52.6 million).

The reconciliation of the obligations from rentals and leases to the lease liability as of the date of the first-time application of the standard presents as follows:



EUR mill.

Obligations from the utilisation of property, plant and equipment assets not reported on the Statement of Financial Position as of 30.09.2019



Liability from the sale-and-leaseback contract from the year 2007/08 in the Waste Management Segment



Difference from the appraisal of the commitment period and the term of the lease in accordance with IFRS 16, as well as the purchase option for the corporate headquarters in Linz



Other items






Discounting effect



Lease liability as of 01.10.2019



Other changes

  • IFRS 9 (Amendments: Prepayment Features with Negative Compensation)
  • IFRIC 23 (Uncertainty over Income Tax Treatments)
  • IAS 28 (Amendments: Long-term Interests in Associates and Joint Ventures)
  • IAS 19 (Amendments: Plan Amendment, Curtailment or Settlement)
  • Annual Improvements to IFRS Standards 2015-2017 Cycle (Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23)

The other changes to standards and interpretations are without any significant effects on the consolidated financial statements.

2.2.Standards and interpretations that have not been applied early

In the 2019/2020 semi-annual financial statements, the following amendments adopted by the EU were not applied ahead of their effective date:

Entry into force in the EU on 1 January 2020:

  • Amendments to References to the Conceptual Framework in IFRS Standards
  • IAS 1, IAS 8 (Amendments: Definition of Material)
  • IFRS 9, IAS 39 and IFRS 7 (Amendments: Interest Rate Benchmark Reform)
  • IFRS 3 (Amendments: Definition of a Business)

The following standards and interpretations, amendments and improvements of standards enter into force on 1 January 2020 or a later date, although they have not yet been adopted by the European Union at this time:

  • IFRS 17 (Insurance Contracts)
  • IAS 1 (Amendments: Classification of Liabilities as Current or Non-current)

These standards are expected to be applied on the effective date promulgated by the EU.

The following standard came into force on 1 January 2016, but was not adopted by the EU:

  • IFRS 14 (Regulatory Deferral Accounts)

Entry into force of the following standard was postponed indefinitely:

  • IFRS 10 and IAS 28 (Amendments: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture)

First-time application of the following standards is not expected to result in any significant implications for the Consolidated Financial Statements.