Pursuant to European regulation 1606/2002 of 19 July 2002 on the adoption of international accounting standards, the EDF group’s consolidated financial statements at 31 December 2022 are prepared under the presentation, recognition and measurement rules set out in the international accounting standards published by the IASB and approved by the European Union for application at 31 December 2022. These international standards are IAS (International Accounting Standards), IFRS (International Financial Reporting Standards), and SIC and IFRIC interpretations.
The Group has not opted for early application of standards and interpretations that were not yet mandatory in 2022.
The parent company’s functional currency is the Euro. The Group’s financial statements are presented in millions of euros.
The accounting and valuation methods applied by the Group in the consolidated financial statements at 31 December 2022 are identical to those used in the consolidated financial statements at 31 December 2021, with the exception of the changes presented below in notes 1.2.1 to 1.2.4. Information is also given on the standards, amendments and interpretations adopted by the European Union that are applicable from 1 January 2023 (note 1.2.5).
For purposes of clarity, the accounting principles and methods used are now described in individual notes to the financial statements.
From 1 January 2022, the proceeds from sales of items produced by an asset that has not yet been commissioned (for example sales of electricity during a testing phase) are no longer deducted from the cost of the asset. These proceeds and the related costs are included in profit and loss as and when they are received or incurred.
Application of these amendments has no material impact on the Group’s financial statements at 31 December 2022. For the Group, they will mostly concern the trial and testing phases of the Flamanville 3 EPR.
These amendments require the provision for onerous contracts to be based on unavoidable costs, corresponding to all the costs necessary to fulfil the contract, not only incremental costs.
This broadens the scope of costs to be taken into consideration, which comprise both incremental costs to fulfil contractual obligations (e.g. labour and materials costs), and a portion of other costs directly related to the contract (e.g. a portion of depreciation of the equipment used, or insurance costs).
Application of these amendments has no material impact on the Group’s financial statements.
These amendments have been applicable since 1 January 2021 to financial assets and liabilities for which contractual modifications result directly from the interest rate reform.
This reform is applied prospectively, with no impact on profit and loss, keeping the hedging relationships for the instruments concerned. Its effects are mainly operational (renegotiation of contracts, fallback provisions, information system upgrades). The interest rate replacements already applied are described in note 1.2.1 to the consolidated financial statements at 31 December 2021.
When the Group adhered to the ISDA Fallback protocol in November 2021, the Libor GBP was replaced by the Sonia for all the derivatives concerned from 1 January 2022.
The replacement operations for the USD Libor will take place in line with the end date for its publication, i.e. by 30 June 2023.
The Group does not anticipate any material impact in connection with the following amendments:
From 1 January 2023, entities will be required to recognise deferred taxes on transactions that give rise upon initial recognition to equal amounts of taxable and deductible temporary differences. The amendments to IAS 12 aim to clarify the treatment of deferred taxes associated with lease agreements and decommissioning costs.
The Group does not anticipate that their application will have a material impact.
IFRS 17 defines the recognition, measurement, presentation and disclosure principles for insurance contracts that fall within the standard’s scope of application.
The Group does not anticipate that its application will have a material impact.
The Group does not anticipate any material impact in connection with the following amendments:
