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5. General accounting policies and topics

5.1 Application of accounting policies

The accounting policies applied by the Group in the consolidated financial statements for the year ended 31 December 2022 are consistent with those applied in the consolidated financial statements for the year ended 31 December 2021, with one exception. The Group applied cash flow hedge accounting for the first time in the year ended 31 December 2022. See note 27 for details about the accounting for the derivatives entered into by the Group in relation to the acquisitions of Scholle IPN and Evergreen Asia.

5.2 Impact of new or amended standards and interpretations

A number of new or amended standards and interpretations became effective for annual periods beginning on 1 January 2022. The applicable standards and interpretations had no, or no material, impact on the consolidated financial statements.

5.3 Adoption of standards and interpretations in 2023 and beyond

A number of new or amended standards and interpretations are effective for annual periods beginning on 1 January 2023 or later and have not been applied in preparing these consolidated financial statements. The Group does not plan to adopt these standards and interpretations before their effective dates. Many of them are not applicable to the Group or are expected to have no, or no material, impact on the consolidated financial statements.

5.4 Critical accounting judgements, estimates and assumptions

In preparing these consolidated financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses and disclosure of contingent assets and liabilities. The estimates and associated assumptions are based on historical experience and various other assumptions that are believed to be reasonable under the circumstances. Actual results may differ from estimates and assumptions made. The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current and future periods.

Management believes that the following accounting policies involve the most significant judgements, estimates and assumptions:

  • Liabilities for various customer incentive programmes – see notes 6 and 18.
  • Impairment testing and recognition of impairment losses – see notes 12 and 14.
  • Business combinations and fair value assessments, including fair value assessment of contingent consideration – see notes 25, 27 and 33.
  • Measurement of obligations under defined benefit plans – see note 30.
  • Determination of income tax liabilities – see note 32.
  • Realisation of deferred tax assets – see note 32.

Global economic uncertainty

Various events such as COVID-19, the war in Ukraine, the increase in raw material and energy prices as well as rising inflation are contributing to global economic uncertainty.

The progress of the business during the COVID-19 pandemic has shown that the Group is well placed to withstand the effects of COVID-19 due to its role in the supply chain for essential food and beverages and its broad geographic reach. The Group overall has not been, and is currently not, significantly impacted by the outbreaks of COVID-19 around the world.

The ongoing war in Ukraine has had significant impacts on the global economy in general, with sanctions against Russia impacting many areas such as the supply of raw materials and energy prices. However, the Group overall has not been, and is currently not, significantly impacted by these effects. The Group has not experienced any significant shortfalls of raw materials, even if the Group is impacted by the global increase in raw material and energy prices as well as higher inflation. These effects can be partially mitigated by the Group’s diversified supply chain, its hedging strategy, long-term supply contracts and ability to pass on higher costs to its customers.

The impact of sanctions against Russia on the Group’s sales is not significant, with sales to customers in Russia and Ukraine representing less than 2% of the Group’s revenue in 2021 (including Scholle IPN’s unaudited revenue in 2021). Prior to the acquisition of Scholle IPN, the Group had only sales and service activities in Ukraine and Russia. One of the acquired Scholle IPN entities is incorporated and has a production plant in Russia, which represents an insignificant part of the acquired net assets. For the year ended 31 December 2022, sales to customers in Russia represented less than 1% of the Group’s revenue.

5.5 Accounting policies and other topics relating to the consolidated financial statements as a whole

5.5.1 Foreign currency

Items included in the financial statements of individual Group entities are recognised in their respective functional currency, which is the currency of the primary economic environment in which each Group entity operates.

Foreign currency transactions

Foreign currency transactions are translated into the respective functional currency of the Group entity at the exchange rates at the dates of the transactions. Monetary assets and liabilities in foreign currencies at the reporting date are translated into the functional currency at the exchange rate at that date. Non-monetary assets and liabilities in foreign currencies that are measured based on historical cost are translated at the exchange rates at the dates of the transactions. Foreign currency exchange gains or losses are generally recognised in profit or loss.

Foreign operations

Assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisitions, are translated into Euro at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into Euro at average rates for the reported periods, which approximate the exchange rates at the dates of the transactions. This also applies to the statement of cash flows and all movements in assets and liabilities as well as any items of other comprehensive income. The foreign currency exchange gains and losses arising on the translation of the net assets of foreign operations are recognised in other comprehensive income, in the translation reserve.

When a foreign operation is disposed of or liquidated, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal (or liquidation). The Group does not apply hedge accounting to the foreign currency exchange differences arising between the functional currency of the foreign operation and the Euro.

Significant exchange rates

The following significant exchange rates against the Euro applied during the periods presented:



Average rate for the year


Spot rate as of



31 Dec. 2022


31 Dec. 2021


31 Dec. 2022


31 Dec. 2021

Brazilian Real (BRL)









Chinese Renminbi (CNY)









Mexican Peso (MXN)









Swiss Franc (CHF)









Thai Baht (THB)









US Dollar ($ or USD)









5.5.2 Lease accounting

The Group as lessor

The Group deploys aseptic carton filling lines at its customers’ sites under both lease and sale contracts. In the newly acquired businesses, filling lines and other related equipment are primarily deployed under sale contracts and in limited cases also under lease contracts.

The aseptic carton filling line contracts generally contain certain terms showing that the Group retains control of the filling line and does not transfer the significant risks and rewards of ownership to the customer. Due to these contractual terms, the majority of the Group’s aseptic carton filling line contracts qualify to be accounted for as operating leases in accordance with IFRS 16 Leases. See further notes 6, 12, 18 and 20. Sale contracts that do not contain such terms are accounted for in accordance with IFRS 15 Revenue from Contracts with Customers.

The Group’s aseptic carton filling line lease contracts do not include unconditional rights for customers to extend the lease or to purchase the filling line at the end of the stated lease term. Due to the Group’s long-term relationships with its customers and changing customer needs, contracts can be modified or terminated at any time. Customers may for example want to change to a different filling machine model. Filling lines taken back from customers are generally overhauled and redeployed with other existing or new customers.

Filling line lease contracts in the newly acquired businesses generally qualify to be accounted for as finance leases in accordance with IFRS 16 Leases. The impact of these finance lease contracts is not material for the Group.

The Group as lessee

The Group leases office buildings, production-related buildings and equipment, warehouses and cars.

The majority of the Group’s leased assets are recognised as right-of-use assets with corresponding lease liabilities. See notes 13 and 22 for details about the accounting for right-of-use assets and lease liabilities.

Leases of low-value assets and short-term leases (leases with a lease term of 12 months or less) are accounted for off-balance sheet. The lease payments are recognised as an expense on a straight-line basis over the lease term. Variable lease payments that are not included in the measurement of lease liabilities are also accounted for off-balance sheet and are recognised as an expense when incurred. The Group’s off-balance sheet leases have an insignificant impact on the Group’s result.

5.5.3 Impairment of non-financial assets

The carrying amounts of the Group’s property, plant and equipment, right-of-use assets and intangible assets with finite useful lives are reviewed regularly and at least annually to identify whether there is an indication of impairment. If an impairment indicator exists, the asset’s recoverable amount is estimated. Goodwill and intangible assets with indefinite useful lives are tested for impairment on an annual basis and whenever there is an indication that they may be impaired.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (“CGU”).

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal. In assessing the value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount. An impairment loss is allocated to first reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro-rata basis. Impairment losses are recognised in profit or loss.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

Further details on impairment testing are provided in the respective notes on property, plant and equipment, right-of-use assets and intangible assets (see notes 12, 13 and 14).

5.5.4 Contingent assets

Contingent assets are possible assets arising from a past event to be confirmed by future events not wholly within the control of the Group. Contingent assets are not recognised in the statement of financial position but are disclosed separately. If realisation of a contingent asset becomes virtually certain, it is no longer considered contingent and is recognised as an asset.

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