IFRS

Alliander’s financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as at 31 December 2025, 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 2025

The following IFRS amendments apply in 2025:

  • Amendments to IAS 21: ‘Lack of Exchangeability.’ This amendment provides clarity on situations in which currencies are not freely exchangeable and sets out the associated financial reporting requirements. Alliander’s financial statements are not impacted by this change.

These financial statements have been prepared in compliance with this EU-approved amendment.

Expected changes in accounting policies

In addition to the aforementioned amended standard, the IASB and the IFRIC have issued new and/or amended standards and/or interpretations, which will apply to Alliander in subsequent financial years. These standards and interpretations can only be applied if adopted by the European Union.

The following new or amended standards were approved by the EU and are effective as of 1 January 2026:

  • Amendments to IFRS 9 and IFRS 7: ‘Contracts Referencing Nature-dependent Electricity.’

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

  • Annual amendments: volume 11.

In addition, there are several new or amended standards which have not yet been approved by the EU, with an expected effective date of 1 January 2027:

  • IFRS 19: ‘Subsidiaries without Public Accountability: Disclosures.’

  • IFRS 18: ‘Presentation and Disclosure in Financial Statements.’

  • Amendments to IAS 21: ‘The Effects of Changes in Foreign Exchange Rates: Translation to a Hyperinflationary Presentation Currency.’

Out of the above amendments, the implementation of IFRS 18 – Presentation and Disclosure in Financial Statements – will have the greatest impact on Alliander. This standard replaces parts of IAS 1 and will apply retrospectively to financial periods beginning on or after 1 January 2027. Voluntary early application is permitted. This new standard aims to improve the reporting of companies’ financial performance and 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 in the first half of 2026.

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.