12 Accounting 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 2025 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, 2025 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 4, Critical accounting estimates and judgments, in the December 31, 2025 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 2026
Starting from January 1, 2026, the group applied the relevant standards, amendments and interpretations that became effective on that date. These include:
- Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: 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).
- Annual Improvements to IFRS Standards 2023 – Amendments to IFRS 9 Financial Instruments – These minor amendments clarify the initial measurement of trade receivables and contract assets when they do not include a significant financing component, aligning IFRS 9 with IFRS 15 and how a lessee applies derecognition requirements to lease liabilities.
These changes had no material impact on the Group's overall results and financial position.
b) Standards, amendments, and interpretations issued but not yet effective
The Group has not early adopted any standard, amendment or interpretation issued but not yet effective in these consolidated financial statements. The following relevant new standard will become effective for annual periods beginning on or after January 1, 2027:
- IFRS 18 Presentation and Disclosure in Financial Statements – IFRS 18 will replace IAS 1 and will become effective from January 1, 2027.
The accounting standard introduces new requirements to the presentation structure of the financial statements as well as additional disclosure requirements, including additional disclosures for management-defined performance measures (MPMs). To prepare for first-time application in 2027, the Group has updated its accounting and reporting processes to enable the preparation of comparative information in accordance with IFRS 18. Based on the assessment performed to date, the Group expects IFRS 18 to primarily affect presentation and disclosure, including changes to the structure of the consolidated income statement, the presentation of certain items within the income statement, the statement of cash flows, including the use of operating profit or loss as the starting point for the indirect method, and related note disclosures, including disclosures for management-defined performance measures. IFRS 18 will be applied retrospectively and, accordingly, the comparative 2026 information will be restated when the standard is first applied in 2027.
The Group is still in the process of assessing the impact of the new accounting standard, particularly with respect to the structure of the consolidated income statement, the consolidated statement of cash flows and the additional disclosures required for MPMs. The Group is also assessing the impact of how information is grouped in the consolidated financial statements, including for items currently labelled as 'other'.