14Accounting policies

14.1 Basis of preparation

These interim financial statements have been prepared in accordance with the requirements of IAS 34 Interim Financial Reporting. The accounting policies applied are consistent with those applied in the consolidated financial statements for the year 2022 and the corresponding interim reporting period, except for the adoption of new and amended standards, as set out below.

These interim financial statements do not include all the notes of the type normally included in an annual financial report. Accordingly, these financial statements are to be read in conjunction with the financial statements for the year ended December 31, 2022, and any public announcements made by Sulzer during the interim reporting period.

The preparation of these interim financial statements requires management to make estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results in the future could differ from such estimates. A description of information that requires significant judgements to be made by Management and the key sources of estimation uncertainty, is disclosed in note 7, Critical accounting estimates and judgments, to the December 31, 2022 consolidated financial statements. Significant judgement by Management is also required when determining fair values. Assumptions and estimates of unobservable market inputs in the fair valuation of financial assets require significant judgment and could affect amounts recognized in the statement of income. Valuation approaches that have to rely heavily on unobservable inputs inherently require a higher level of judgement.  

Due to rounding, numbers presented throughout this report may not add up precisely to the total provided. All ratios, percentages and variances are calculated using the underlying amount rather than the presented rounded amount. 

14.2 Change in accounting policies

a) Standards, amendments and interpretations that are effective for 2023

Starting from January 1, 2023, the group applied changes in standards, amendments and interpretations that became effective January 1, 2023. None of these changes had a material effect on the financial statements of the group.

In May 2023, amendments to IAS 12 Income Taxes, International Tax Reform - Pillar Two model rules were published. The amendments clarify that IAS 12 applies to income taxes arising from tax law enacted or substantively enacted but not yet in effect to implement the Organization for Economic Co-operation and Development (OECD) Pillar Two model rules. As a temporary mandatory relief to the requirements in IAS 12, no deferred tax assets and liabilities should be recognized related to Pillar Two income taxes, and no information needs to be disclosed on such deferred tax assets and liabilities. Sulzer has applied the exception.

b) Standards, amendments and interpretations issued but not yet effective that the group has decided not to adopt early in 2023

There are no other IFRS standards or interpretations not yet effective that would be expected to have a material impact on the group.