2 Basis of preparation

The Group’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS Accounting Standards), as issued by the IASB, and are compliant with Swiss law. The consolidated financial statements are prepared using the accrual basis of accounting and the historical cost approach with the exception of financial instruments measured at fair value.

The consolidated financial statements are based on the annual financial statements of the individual Group companies controlled directly or indirectly by Schindler Holding Ltd. The reporting periods of all Group companies end on December 31. An overview of material Group companies is provided in note 28.

2.1 Changes in IFRS

Amendments to IFRS, applied for the first time as of January 1, 2024, did not have a material impact on the Group’s consolidated financial statements.

In 2024, the IASB issued IFRS 18 – Presentation and Disclosure in Financial Statements, applicable as of January 1, 2027. The Group is currently performing an assessment of the impacts of the new IFRS standard on the consolidated financial statements. There are no plans for the early adoption of the standard prior to the mandatory effective date.

Furthermore, there are no plans for the early adoption of other published standards, interpretations, or amendments prior to their mandatory effective date. The Group does not expect that other changes to IFRS will have a material impact on the Group’s consolidated financial statements.

2.2 Change in presentation

As part of continuous improvements in the financial reporting process, Schindler has revised the presentation of the fair value of derivatives. As of January 1, 2024, the fair value of derivatives is presented in the line item current financial assets or current financial debts, respectively, and is no longer presented in the line item prepaid expenses or accrued expenses in the consolidated balance sheet. This correction did not have any impact on the consolidated equity, nor on the consolidated statement of comprehensive income or the consolidated cash flow statement in 2024.

To allow for better comparison, the line items presented in the Group consolidated financial statements 2023 were adjusted as follows:

2.3 Significant assumptions and estimates

The Group’s consolidated financial statements contain certain assumptions and estimates that influence the figures presented in this report. They are based on analyses and judgments that are continuously reviewed and adjusted if necessary. The actual results may differ from these assumptions and estimates.

The main assumptions and estimates that have a significant risk of resulting in a material adjustment to the consolidated financial statements in future years are described in the following notes: