IFRS

Alliander’s financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as at 31 December 2024, as adopted by the European Union (EU), and the provisions of Part 9, Book 2 of the Dutch Civil Code. IFRS consists of the IFRS accounting standards as adopted by the EU and the International Accounting Standards issued by the International Accounting Standards Board (IASB), as well as the interpretations of IFRS and IAS standards issued by the IFRS Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC).

The significant accounting policies used in the preparation of the consolidated financial statements are set out below. The historical cost convention applies. However, certain assets and liabilities, including derivatives, are measured at fair value. Unless stated otherwise, these accounting policies have been applied consistently to the years covered in these financial statements.

The preparation of financial statements requires the use of estimates and assumptions based on experience and considered appropriate by management given the specific circumstances. These estimates and assumptions have an impact on the carrying amounts and presentation of the reported assets and liabilities, the off-balance sheet rights and obligations and the reported income and expenditure during the year. The actual outcomes may differ from the estimates and assumptions used. Note 35 to the financial statements gives further information on the areas and items in the financial statements where estimates and assumptions are used. Unless stated otherwise, all amounts reported in these financial statements are in millions of euros.

Unrealised profits on transactions between the Alliander group and its associates or joint ventures are eliminated pro rata according to the group’s interest in the entity concerned. Unrealised losses are also eliminated, unless the transaction gives rise to the recognition of impairment losses. If appropriate, the accounting policies of associates and joint ventures are adjusted to ensure the consistent application of accounting policies throughout the Alliander group.

New and/or amended IFRS standards applicable in 2024

The IASB has issued new and amended accounting standards that are applicable to Alliander with effect from the 2024 financial year. The new accounting standards and amendments to accounting standards listed below have been endorsed by the European Union:

  • Amendment to IAS 1 Presentation of Financial Statements ‘Classification of Liabilities as Current or Non-current’;

  • Amendment to IAS 1 Presentation of Financial Statements ‘Long Term Debt with Covenants’;

  • Amendment to IFRS 16 Leases: ‘Lease Liability in a Sale and Leaseback’

  • Amendment to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: ‘Disclosures: Supplier Finance Arrangements’.

These financial statements have been prepared in compliance with these EU-approved amendments. However, these changes have no material impact on Alliander and they are therefore not discussed further in the financial statements.

Amendment to IAS 12 Income taxes: ‘International Tax Reform – Pillar Two Model Rules’

On 31 December 2023, the 2024 Minimum Tax Rate Act came into force, pursuant to Directive (EU) 2022/2523 and based on the OECD/G20 Pillar 2 rules. Under the legislation, multinational groups which have a revenue of €750 million or more according to the consolidated financial statements of the ultimate parent must be subjected to a minimum effective tax rate of 15% per jurisdiction. If this tax rate is lower, ‘top-up tax’ may be charged.

The 2024 Minimum Tax Rate Act is applicable to Alliander N.V. since the revenue according to the consolidated financial statements of the group’s ultimate parent, Alliander N.V., is €750 million or more in at least two of the four reporting years prior to the 2024 financial year.

Analysis shows that, based on the available financial data, the temporary safe harbour rules (rules to ease compliance obligations) can be used in the 2024 reporting year for all group companies held by Alliander N.V. in Germany, Belgium and Sweden, which results in zero top-up tax. The Dutch group companies cannot make use of the safe harbour rules. An analysis of the position of the Dutch group companies indicates that the top-up tax in relation to them would also be nil.

Under an amendment to IAS 12, a temporary, mandatory exemption applies to the recognition and disclosure of deferred taxes resulting from the introduction of the global minimum tax rate. This is intended to prevent different interpretations of how Pillar 2 should be applied and the effect this would have on deferred taxes in the financial statements. How long this exemption will remain in force is not yet known. Alliander will continue to assess the impact of the Pillar 2 legislation under the 2024 Minimum Tax Rate Act on its future financial performance.

This new standard and these amendments to standards do not have any material impact on Alliander and/or their relevance is either zero or very limited so they will not be discussed further in these financial statements.

Expected changes in accounting policies

In addition to the aforementioned new and amended accounting standards, the IASB and the IFRIC have issued new and/or amended standards and/or interpretations that will be applicable to Alliander in subsequent financial years. These accounting standards and interpretations can only be applied if adopted by the European Union. The proposed new or amended accounting standards are:

  • IFRS 19 Subsidiaries without Public Accountability: Disclosures;

  • IFRS 18 Presentation and Disclosure in Financial Statements;

  • Amendments to IFRS 9 and IFRS 7: ‘Classification and Measurement of Financial Instruments’.

IFRS 18 will replace parts of IAS 1 and will apply to financial periods beginning on or after 1 January 2027, although early voluntary adoption is permitted. This new standard aims to improve the reporting of companies’ financial performance and to achieve better comparability between companies. It deals with the presentation and comparability of the income statement, with rules for the categorisation and breakdown of items in the financial statements and a mandatory explanation of ‘management defined performance measures’. Alliander will determine the impact on the consolidated financial statements more precisely.

The other future amendments to accounting standards and interpretations are not relevant to Alliander and/or do not have any material impact on Alliander, so they will not be discussed further in the financial statements.