Alliander’s financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as at 31 December 2021, as adopted by the European Union (EU), and the provisions of Title 9, Book 2 of the Dutch Civil Code. IFRS consists of the IFRS standards as well as the International Accounting Standards issued by the International Accounting Standards Board (IASB) and the interpretations of IFRS and IAS standards issued by the IFRS Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC), respectively.
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  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 2021
The IASB and the IFRIC have issued new and/or amended standards and interpretations which are applicable to Alliander with effect from the 2021 financial year. The amendments to the standards and interpretations described below have been endorsed by the European Union.
Amendment of references to IFRS framework;
Amendment to IFRS 4 Insurance Contracts ‘Extension of the Temporary Exemption from Applying IFRS 9’;
Amendments to IFRS 4, IFRS 7, IAS 39, IFRS 9 and IFRS 16 ‘Interest rate benchmark reform – Phase 2’;
Amendment to IFRS 16 Leases ‘COVID-19-related rent concessions beyond 30 June 2021’ (effective as of 1 April 2021);
Further interpretation of accounting for Software as a Service (SaaS) purposes (effective as of 1 January 2021).
These amendments to standards and interpretations do not have any material impact on Alliander or the impact is 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 standards, the IASB and the IFRIC have issued new and/or amended standards and/or interpretations, which will be applicable to Alliander in subsequent financial years. These standards and interpretations can only be applied if adopted by the European Union.
The future new and/or amended standards and interpretations are the following:
IFRS 17 ‘Insurance Contracts’;
Amendment to IAS 1 Presentation of Financial Statements ‘Classification of Liabilities as Current or Non-current’;
Amendment to IFRS 3 ‘Reference to the Conceptual Framework’;
Amendment to IAS 16 ‘Proceeds before Intended Use’;
Amendment to IAS 37 ‘Onerous Contracts - Cost of Fulfilling a Contract’;
‘Annual Improvements to IFRS Standards 2018 – 2020’:
Amendment to IFRS 1 ‘Subsidiary as a first-time adopter’;
Amendment to IFRS 9 ‘Fees in the “10 per cent” Test for Derecognition of Financial Liabilities’;
Amendment to IFRS 16 ‘Illustrative Example 13’;
Amendment to IAS 1 ‘Presentation of Financial Statements’ and ‘IFRS Practice Statement 2’;
Amendment to IAS 8: ‘Accounting policies, changes in accounting estimates and errors: definition of accounting estimates’;
Amendment to IAS 12: ‘Deferred tax related to assets and liabilities arising from a single transaction’.
These published future amendments to standards and interpretations are not relevant or have very limited relevance to Alliander and/or do not have any material impact on Alliander so they will not be discussed further in these financial statements.