2. Basis of preparation
The consolidated financial statements of the KION Group for the financial year ended December 31, 2025 have been prepared in accordance with section 315e of the German Commercial Code (HGB) in conjunction with the International Financial Reporting Standards (IFRSs) of the International Accounting Standards Board (IASB) applicable as at the reporting date as well as the associated interpretations (IFRICs) of the IFRS Interpretations Committee (IFRS IC) as adopted by the European Union in accordance with Regulation (EC) No. 1606/2002 of the European Parliament and of the Council concerning the application of international accounting standards. All of the IFRSs and their interpretations that had been enacted by the reporting date and that were required to be applied in the 2025 financial year have been applied in preparing the consolidated financial statements.
In order to improve the clarity of presentation, certain items are aggregated in the statement of financial position and the income statement. The items concerned are disclosed and explained separately in the notes. Assets and liabilities are broken down into current and non-current items. The consolidated income statement is prepared in accordance with the cost of sales (function-of-expense) method.
The consolidated financial statements were prepared in euros, which is the Group’s presentation currency. All amounts are disclosed in millions of euros (€ million) unless stated otherwise. Due to rounding effects, addition of the individual amounts shown may result in minor rounding differences to the totals. The percentages shown are calculated on the basis of the respective amounts, rounded to the nearest thousand euros. All of the separate financial statements of the subsidiaries included in the consolidation were prepared as at the same reporting date as the annual financial statements of KION GROUP AG. The comparative figures for the prior year were determined on the same basis.
Financial reporting standards to be adopted for the first time in the current financial year
Amendments to IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ were required to be applied for the first time in 2025. The amendments specify when a currency is exchangeable into another currency and provide guidance on how to determine the exchange rate to apply when a currency is not exchangeable. Initial application of these adjustments had no effect on the presentation of the financial position and financial performance of the KION Group.
Financial reporting standards released but not yet adopted
The standards and interpretations that had been issued by the IASB by December 31, 2025 but were not yet required to be adopted for the 2025 financial year are expected to be applied by the KION Group only from the time when they are required to be applied. Based on current assessments, the initial application of these financial reporting standards and interpretations will have no material effect on the presentation of the financial position and financial performance of the KION Group.
This assessment of materiality does not apply in respect of the initial application of IFRS 18 ‘Presentation and Disclosure in Financial Statements’. Based on the findings of the ongoing implementation project, the application of IFRS 18 in the KION Group will result in changes to the presentation of the consolidated income statement and consolidated statement of cash flows and will necessitate additional disclosures in the notes to the consolidated financial statements. The new standard will not affect the recognition and measurement rules. IFRS 18 will replace the current standard IAS 1 ‘Presentation of Financial Statements’ and is required to be applied for annual periods beginning on or after January 1, 2027.