12Accounting policies
12.1 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 2023 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, 2023 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 6, Critical accounting estimates and judgments, in the December 31, 2023 consolidated financial statements.
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.
12.2 Change in accounting policies
a) Standards, amendments, and interpretations that are effective for 2024
Starting from January 1, 2024, the group applied changes in standards, amendments and interpretations that became effective from January 1, 2024. None of these changes had a material effect on the consolidated interim financial statements of the group.
b) Standards, amendments, and interpretations issued but not yet effective
In 2024, the group has not adopted early any standard, amendment, or interpretation issued but not yet effective. The following amended standard will become effective from January 1, 2025. The group does not expect these to have a material impact on the consolidated financial statements:
- Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates – The amendments provide guidance for the assessment if a currency is exchangeable into another currency and how to determine the spot exchange rate in case a currency is not exchangeable.
The following amended standards and amendments will become effective after December 31, 2025. The group is currently in the process of analyzing the impacts on the consolidated financial statements:
- Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosure – The amendments include clarification about the date on which a financial liability is derecognized in case of a settlement via electronic cash transfers, as well as clarification about the classification of financial assets with features linked to environmental, social and corporate governance (ESG). The amendments will become effective from January 1, 2026.
- IFRS 18 Presentation and Disclosure in Financial Statements – The new standard introduces a defined structure for the statement of profit or loss as well as additional disclosure requirements on the statement of profit or loss. The new standard will become effective from January 1, 2027.
- IFRS 19 Subsidiaries without Public Accountability: Disclosures – The new standard will become effective from January 1, 2027.