IV. Accounting and measurement methods

1. Property, plant and equipment

The subsequent measurement of property, plant and equipment is at cost less any accumulated depreciation and any accumulated impairment losses.

Land is not depreciated. All other assets are amortized using the straight-line method over their expected useful lives.

Upgrade investments are only recognized if they can be recognized as a separate asset. This applies in the case of the component ap­proach, which Munich Airport uses for buildings. Under this approach, the accumulated acquistion or production costs of the building is disaggregated into components of different useful lives and depre­ciated separately. The acquisition or production costs for the build­ings are disaggregated into the components shell and façade, roof, interior fittings and technical installations, and they are depreciated separately.

The following useful lives are applicable in the consolidated financial statements (rights of use in relation to leases are excluded):

For the right-of-use assets in accordance with IFRS 16, useful lives of between nine months and 19 years are assumed. In determining the term of leases of assets, the Group considers all facts and cir­cumstances that provide an economic incentive to exercise renewal options or not to exercise termination options. In this context, the main factors are the terms and conditions, satisfaction with the lessor’s cooperation, as well as logistical considerations related to the Group’s future strategy.

Gains or losses from the disposal of non-current assets are deter­mined by comparing the sale proceeds to the remaining carrying amounts. They are presented in the consolidated statement of pro­fit or loss under other income or expenses.

2. Intangible assets

a) Acquired intangible assets

The subsequent measurement of intangible assets is at cost less any accumulated amortization and any accumulated impairment losses.

Except for emission rights, the useful lives of acquired intangible assets are definite and are between three and ten years. These in­tangible assets are amortized using the straight-line method over the expected useful life.

b) Internally generated intangible assets

The internally generated intangible assets consist of special soft­ware for the operation of the airport.

The useful lives of internally generated intangible assets are deter­minable. It amounts to three to seven years. Amortization uses the straight-line method.

c) Emission rights

Emission rights are initially recognized at cost.

In principle, the useful life of emission rights is indefinite. Therefore, the carrying amount of these rights is compared annually with the recoverable amount and impaired if necessary.

3. Borrowing costs

If a period of 12 months passes before an asset is ready for oper­ation, the borrowing costs that are directly attributable to the acquisition or production of the asset are capitalized. Borrowing costs that can be capitalized comprise interest costs of direct and indirect sources of financing. They are derived from the interest expense determined according to the effective interest method.

4. Government grants

Government grants must be recognized in the consolidated state­ment of profit or loss and in those periods when the Group recog­nizes the corresponding expenses that the grants are intended to compensate.

Specifically, government grants for which the main condition is purchase, construction or some other procurement of non-current assets are deducted when determining the carrying amount of the asset.

Such government grants are recognized in the consolidated state­ment of profit or loss on the basis of a reduced depreciable amount over the useful life of the depreciable asset.

5. Investment property

Investment property is initially recognized at its cost of acquisition or production.

Subsequent measurement of investment property is at cost less any accumulated depreciation and any accumulated impairment losses. The useful lives and depreciation methods correspond to those used for owner-occupied property.

As soon as investment property comes into operational utilization, it is transferred into property, plant, and equipment for own use.

Munich Airport counts all property and buildings with indefinite use as financial investment in property, and all buildings and property that are used by third parties, and which are used to generate rev­enues independent of the other airport operations, are also assigned to the same.

6. Leases

In the case of leases, the subsequent measurement of the rights of use is at cost less any accumulated depreciation and any accumu­lated impairment losses and is depreciated over the useful life.

Short-term leases and leases for which the underlying asset is of low value are recognized.

7. Financial instruments Summary

a) Recognition and initial measurement

In general, financial assets and financial liabilities are initially recog­nized when the Group becomes party to the contract. Regular pur­chases and sales of financial instruments are recognized on the trade date. Financial assets, with the exception of derivative finan­cial instruments, are recognized at the settlement date.

Financial instruments are measured at fair value on initial recogni­tion. Insofar as financial instruments are not classified «at fair value through profit or loss», they are recognized at fair value including transaction costs directly attributable to the acquisition or issue. Trade receivables without significant financing components are measured at the transaction price.

b) Classification and subsequent measurement

When financial assets are recognized for the first time, Munich Air­port allocates them to one of the following measurement categories: «at amortized cost», «at fair value through other comprehensive income – debt instrument», «at fair value through other compre­hen­sive income – equity instrument» or «at fair value through profit or loss». The financial assets are assigned to measurement cate­gories – with the exception of equity instruments – depending on the identified business model under which the assets are held and the characteristics of the contractual cash flows. The contractual terms of the financial assets must generate cash flows at stipulated times, which represent «Solely Payments of Principal and Interest».

Financial assets are assigned to the category «at amortized cost» if:

• they are held within a business model whose objective is to hold assets

• these cash flows represent solely payments of principal and inter­est and take place at specified times

Financial assets are assigned to the category «at fair value through other comprehensive income – debt instrument», if:

• they are held as part of a business model whose objective is to hold and sell assets

• these cash flows represent solely payments of principal and inter­est and take place at specified times

All other financial assets that are not classified «at amortized cost» or «at fair value through other comprehensive income – debt instru­ment» as described above must be measured at fair value through profit or loss.

The business model is assessed at the portfolio level of the individual financial assets and their objectives. The Group has currently identi­fied the business models «Held-to-collect» as well as «Other» for the financial instruments in its portfolio.

Financial assets in the «Held-to-collect» business model and thus in the category «at amortized cost» are, in particular, trade receiv­ables as well as other receivables and assets. Furthermore, cash and cash equivalents are also assigned to these categories. Cash and cash equivalents include short-term, highly liquid financial invest­ments, which can be converted into cash amounts at any time and that are subject to only insignificant fluctuation in value.

Financial assets of the «Other» business model and in the category «at fair value through profit or loss» are exclusively financial assets held for trading purposes within the meaning of derivatives and orig­i­nal financial instruments.

Under IFRS 9, the contractual payments of principal and interest must be assessed at the individual instrument level, based on the following definitions:

• The term «principal» refers to the principal amount of the financial asset. The principal amount represents the fair value of the finan­cial instrument at the time of initial recognition. For current assets, this regularly corresponds to the nominal amount.

• The term «interest» is defined as a consideration for the time value of money and the assumed credit risk, as well as for other fundamental costs of a basic lending arrangement (for example, the liquidity risk and administrative costs). Financial assets are not reclassified after their initial recognition unless the Group changes its business model for the management of financial assets. The affected financial assets are reclassified on the first day of the first reporting period after the change of business model; no reclassifications were performed in the past fiscal year.

Equity instruments are generally measured at fair value. On initial recognition of an equity instrument which is not held for trading purposes, Munich Airport can irrevocably determine to recognize changes in fair value directly in other comprehensive income («at fair value through other comprehensive income – equity instru­ment»). This decision is made for each individual instrument.

The equity instruments in the portfolio are investments in sub­sidiaries and joint ventures which are not included in the scope of consolidation for reasons of immateriality.

Financial liabilities are generally classified in the category «at amor­tized cost», independently of other criteria. If on initial recognition, specific prerequisites are fulfilled, a different accounting treatment may be applied. In addition to accounting at amortized cost, they can also be recognized as at fair value through profit or loss. The possibility of exercising the option «at fair value through profit or loss» is currently not utilized. Derivatives are generally always mea­sured at the fair value through profit or loss. For loan commitments issued, expected credit defaults must also be determined if certain conditions are met.

Financial liabilities in the category «at amortized cost» are essen­tially financial liabilities resulting from interests in partnerships, bor­rowings vis-à-vis shareholders, financial liabilities from loans as well as trade accounts payables and other payables.

c) Measurement categories

The subsequent measurement of financial assets is based on the following measurement categories:

• «At fair value through profit or loss»: Gains or losses as well as any interest income and dividends from financial assets measured at fair value through profit or loss are recognized in the statement of profit or loss.

• «At amortized cost»: Financial assets measured at amortized cost are measured using the effective interest method. The amortized costs are reduced by the value adjustments. Interest income, for­eign currency gains and losses as well as impairments are recog­nized through profit or loss. Furthermore, gains or losses occurring on derecognition must also be recorded through profit or loss.

• «At fair value through other comprehensive income – debt instru­ment»: Other debt instruments are measured at fair value. Interest income calculated using the effective interest method, along with foreign currency gains and losses as well as impairments, are recognized in the statement of profit or loss. Other net gains and losses must be recognized in other comprehensive income. On­derecognition, aggregated gains or losses are reclassified through profit or loss.

• »At fair value through other comprehensive income – equity instru­ment»: Other equity instruments are measured at fair value. Divi­dends that do not clearly compensate for part of the investment costs are recognized in the statement of profit or loss. Other net gains and losses are recognized in other comprehensive income and may not be reclassified in the statement of profit or loss.

The subsequent measurement of financial liabilities is based on the following measurement categories:

• «At fair value through profit or loss»: Gains or losses and any in­ter­est expenses from financial liabilities measured at fair value through profit or loss are recognized in the statement of profit or loss. For derivatives designated as hedging instruments, please also refer to Section IV.7.g).

• «At amortized cost»: Financial liabilities measured at amortized cost are measured using the effective interest method. Interest expenses, as well as foreign currency gains and losses are recog­nized through profit or loss. Furthermore, gains and losses occur­ring on derecognition are also recorded through profit or loss.

The effective interest rate is the rate that is used to discount the ex­pected cash flows (including fees) over the expected life of a fi­nan­cial instrument to its carrying amount at the time of determi­nation. When calculating interest income and expenses, the effective inter­est rate is applied to the gross carrying amount of the financial asset (insofar as the asset is not impaired) or the amortized costs of the financial liability.

For financial assets categorized as impaired after initial recognition, the effective interest rate is calculated on the net carrying amount of the financial asset. If the financial asset is subsequently no longer categorized as impaired, the interest income is again calculated on the basis of the gross carrying amount. In the event of changes in cash flows, the calculation is continued using the original effective interest rate.

A new effective interest rate is calculated for substantial contractual loan modifications that result in the original loans being derecog­nized and a new loan being recognized. Where the contractual terms of a loan are not substantially modified, the existing liability is continued, retaining the original effective interest rate. The discounting of changed cash flows at the original effective interest rate results in a carrying amount adjustment to the amortized costs that is recognized through profit or loss.

The treatment of fees depends on their nature. Fees charged for ser­vices rendered are recognized immediately in profit or loss. All other fees are treated as transaction costs (recognized in the initial carry­ing amount and distributed using the effective interest method for fixed-rate financial instruments or distributed on a straight-line basis over the term in the case of floating-rate financial instruments). Commitment fees are recognized as deferred expenses until the loan is disbursed. If the loan disbursement is no longer expected, the accumulated amount is immediately reversed through profit or loss.

The fair value of derivative financial instruments is determined by discounting the future cash flows using the market interest rate and other common financial methods. The fair value of derivatives is gen­er­ally zero at initial recognition under market conditions. Counterparty-specific credit risks are taken into consideration when measuring derivative financial instruments.

d) Derecognition

Financial assets are derecognized when the contractual rights to cash flows from the financial asset expire, or the rights to receive the contractual cash flows of a transaction in which substantially all the risks and rewards of ownership are transferred to a third party or are neither transferred nor retained and there is no control over the financial asset. Munich Airport does not enter into any transactions that could lead to a complete or partial transfer of all material risk and rewards.

Financial liabilities are derecognized, when the contractual obliga­tions are discharged, canceled or expire. Munich Airport also derecog­nizes financial liabilities when the contractual terms have been adjusted and the cash flows differ materially from one another. In this case, a new financial liability based on the changed conditions is recognized at fair value. When derecognizing financial liabilities, the difference between the former carrying amount and the paid consideration (including non-cash assets or liabilities) is recorded through profit or loss.

e) Offsetting

Financial assets and financial liabilities are offset in these consoli­dat­ed financial statements if the requirements pursuant to Sec­tion 387 et seqq. of the Bürgerliches Gesetzbuch (BGB – German Civil Code) are met as at the end of the reporting period and the Executive Board intends and is able to settle on a net basis or re­lease a financial asset and settle a financial liability simultaneously.

f) Impairments – expected credit losses

Munich Airport recognizes expected credit losses for all financial assets that are measured «at amortized cost». The amount of loss recognized and the interest collected are determined using the cal­culation model and the assignment of the instrument to the relevant stage.

With the exception of trade receivables and contract assets¹⁾, the impairment amount for all other financial instruments is determined in accordance with the general impairment model (also referred to as the «general approach») and the three stages below:

Stage 1: All relevant financial instruments are initially assigned to Stage 1. The present value of the expected losses from possible default events within the next twelve months («12-month expected credit losses») after the reporting date must be recognized through profit or loss. The interest income associated with the financial instrument is calculated by multiplying the gross carrying amount at the start of the period with the effective interest rate determined at the time of receipt. Consequently, the effective interest method is applied on the basis of the carrying amount prior to consideration of the risk provision.

Stage 2: Financial instruments that demonstrate a significantly increased credit risk compared to the time of receipt must be assigned to Stage 2 of the impairment model. The impairment corresponds to the present value of the expected losses from possible default events over the residual term of the financial instrument («lifetime expected credit losses»). The interest income is calculated analogously to Stage 1.

Stage 3: If, in addition to a significantly increased credit risk, objec­tive evidence of an impairment of the financial instrument is also evident, the impairment continues to be measured on the basis of the present value of the expected losses from possible default events over the residual term of the financial instrument («lifetime expected credit losses»). However, in contrast to Stages 1 and 2, interest income is received on the basis of the net carrying amount, i.e. the gross carrying amount less the risk provision taking into con­sideration the original effective interest rate.

Cash and cash equivalents, other receivables and assets as well as loan commitments are subject to the impairment requirements according to the general approach. The (net) carrying amount of these financial instruments represents the maximum credit risk in each case.

To determine a significantly increased credit risk compared to the initial recognition, Munich Airport takes into consideration appro­priate information that is available without excessive cost or effort.

Financial instruments in the general approach are subject to a sig­nificantly increased credit risk where there is a (relative) change in the probability of default of more than 20%; however, a significantly increased credit risk is assumed no later than when a payment is overdue for more than 30 days.

For cash and cash equivalents, the simplification for financial instru­ments with a low credit risk («low credit risk exemption») is used, where possible, as of the balance sheet date. The assessment of a low credit risk uses, for example, country- and borrower-specific rating information and their outlook. The requirements for financial instruments with a low credit risk are considered to be fulfilled for cash and cash equivalents with at least an investment grade rating, so that tracking of the credit risk for financial instruments with a low credit risk is not required.

As credit commitments do not have a maturity structure, overdue dates are not used either to identify a significantly increased credit risk or in the case of objective evidence of an impairment.

For trade receivables and contract assets, a «simplified approach» is used to determine the impair­ment, which provides for an impair­ment in the amount of the lifetime expected credit loss over the residual term, independently of the credit quality. Consequently, these financial instruments must at minimum be assigned to Stage 2, and to Stage 3 in the case of objective evidence of an impairment. The simplified approach is likewise used for trade receivables and contract assets that include a financing component in accordance with IFRS 15, as well as for receivables from leases. The (net) carry­ing amount of these instruments represents the maximum credit risk in each case.

At each reporting date, the financial instruments are examined individually to determine whether there is objective evidence of impairment. In that case, Munich Airport performs an individual assessment of the financial instruments. Objective evidence of an impairment of a financial asset is deemed to exist if a reliably mea­surable negative effect on future cash flows from the asset can be determined.

Objective evidence of an impairment is assumed for cash and cash equivalents (in addition to general qualitative indicators) no later than 90 days past due.

Objective evidence of impairment includes, for example, significant financial difficulties on the part of the debtor, defaults or delays in payment, a downgrade in creditworthiness, insolvency or other re­structuring procedures on the part of the debtor.

If events occur in subsequent periods which indicate that future cash flows from the financial asset will approximate their original level (for example, through an increase in creditworthiness), a reversal of impairment is recognized in the consolidated statement of profit or loss.

To determine the expected credit losses and to assess the relative change in the probability of default, Munich Airport uses credit de­fault swap spreads quoted on the market, which take into conside­ration forward-looking macroeconomic factors, and extrapolates the probability of default. Depending on the volume of business with debtors, an individual assessment is performed for material posi­tions; for positions that are not material in terms of the amount, an assessment is performed using homogeneous portfolios that represent the geographical and debtor-specific characteristics. If no debtor-specific credit default swap spreads are available for certain debtors, they are considered by taking geographic and industry-specific characteristics into account.

The 12-month expected credit losses and lifetime expected credit losses are calculated using credit default swap spreads quoted on the market, which along with the default probability of the debtor also include the loss given default. Where there is objective evidence of impairment, a separate evaluation of the expected loss, based on the current market price and the original effective interest rate, is performed as part of the individual assessment.

The calculation of expected credit losses for loan commitments is based on the internally used credit spread, which is added to the variable interest rate of the relevant cash pool commitments.

Munich Airport defines an event of default as the financial instrument no longer being collectible, irrespective of the financial instrument, so that there is a probability of default of 100%. In this case, the re­ceipt of contractual cash flows is no longer expected. At this point, a write-down of the portfolio is performed, corrected by any collateral.

g) Derivatives in hedge relationships

The following accounting and measurement methods can only be applied to derivatives that have been designated into highly effective and adequately documented hedge relationships. All other deriva­tives must be measured at fair value through profit or loss. Deriva­tives in hedge relationships are recognized on the trade date. They are measured on initial recognition and thereafter at fair value. Changes in the fair value are recorded depending on the nature of the hedged item and the hedge relationship.

Fair value hedge: changes in the fair value of the hedging instrument and changes in the fair value of the hedged item relating to the hedged risk are recognized in profit or loss. The effective portion of the change is presented under financial expenses or income, and the ineffective portion under the other financial result, other gains (net) or other losses (net).

When a fair value hedge ends, the measurement of the hedged item at fair value is ended. For a financial instrument measured at amor­tized cost, a new effective interest rate is determined on the basis of the carrying amount at the time the hedge ends, and the still out­standing cash flows. The effective interest serves as the basis for the subsequent measurement until the disposal of the hedged item.

Cash flow hedge: The effective portion of the changes in the fair value of the hedging instrument is recognized directly in equity in the hedging reserve, while the ineffective portion is recognized through profit or loss in the other financial result under other gains (net) or other losses (net). The value changes recorded in the hedging re­serve are reclassified in the statement of profit or loss each time a payment is made to compensate the effect of the hedged cash flows of the hedged financial item (reclassification).

Even after termination of a cash flow hedge, the changes in fair value accumulated to date remain in the hedging reserve until the hedged transaction occurs. The value changes recorded in the hedging re­serve are reclassified in the statement of profit or loss each time a payment is made to compensate the effect of the hedged cash flows of the hedged financial item (reclassification).

At the inception of the hedge at the latest, the Group’s hedge rela­tion­ships, risk management objectives and strategies relating to the hedge are formally designated and documented. That documentation shall include the identification of the hedged item, the hedging instrument, the nature of the hedge relationship, and the objectives of the hedging strategy and methods for effective measurement.

Munich Airport monitors the prospective effectiveness of the hedge relationship from the time it is entered into until its end.

Disclosures concerning the fair value of the derivatives in hedge re­lationships can be found in Section VII.16, while disclosures concern­ing changes in the hedge can be found in Section VII.12. The full carrying amount of a derivative is classified as current or non-cur­rent in accordance with the term of the associated hedged item.

8. Inventories

Inventories include raw materials and supplies, finished goods and work in progress, and merchandise.

They are measured at the lower of cost and net realizable value.

The consumption method used to determine the cost of raw ma­te­rials and supplies is the average cost method, while the FIFO method is used for merchandise.

9. Receivables and contract assets

Trade receivables are reported under non-current assets if they fall due more than twelve months after the end of the reporting period. If their realization is in less than twelve months, they are reported under current assets.

This also applies to contract assets provided their realization is more than twelve months after the reporting date. If their realization is within twelve months, they are reported under current assets.

10. Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits at banks, as well as short-term deposits. Cash and deposits with original matu­rity of up to three months are included in cash and cash equivalents if they are not subject to any significant fluctuations in value and can be liquidated at any time without incurring a risk discount.

11. Equity

a) Classification of equity and liabilities

Financial instruments issued by Munich Airport are classified as equity or debt in accordance with the economic substance of the agree­ments. Equity is defined as all financial instruments on the liabilities side that are not liabilites.

b) Partnerships

The scope of consolidation contains partnerships with non-control­ling interests. Interests in German partnerships are subject to a right of termination which cannot be waived by the Articles of Association. A partner who withdraws from the partnership may assert a claim for compensation against the remaining partners. For this reason, inter­ests in partnerships are classified as financial liabilities in the con­so­lidated financial statements unless they can be assigned to the owner of the company. In these consolidated financial statements, they are reported as «financial liabilities from interests in partner­ships».

The IFRS rules used to delimit these consolidated financial state­ments differ from the distinction methods for equity and liabilities that apply in the German jurisdiction.

At the time of initial recognition, these financial liabilities are mea­sured at fair value, i.e. at the present value of the expected settlement obligation with a risk-adequate interest rate at the earliest possible termination date.

Subsequent measurement is based on the effective interest method. The financial liability is compounded through profit or loss. Further explanations can be found in Section V.2.

12. Liabilities and contract liabilities

Trade payables are reported under non-current liabilities if they are due more than twelve months after the reporting date. If they are due within twelve months, they are classified under current liabilities.

A refund liability is recognized in liabilities when Munich Airport re­ceives consideration from a customer and expects the customer to be reimbursed for all or part of that consideration. A refund liability is measured at the amount of the consideration (to be) received to which the customer is entitled.

13. Current and deferred income tax assets and liabilities

Deferred tax assets and liabilities are to be netted off if Munich Airport has acquired a legal enforceable right to offset current income tax assets and liabilities and the deferred tax assets and liabilities relate to the same tax authority.

Deferred taxes from current items and deferred taxes from non-current items are offset separately in these consolidated financial statements.

At Group level, netting is only carried out to the extent that there is a possibility of offsetting against income tax groups.

Munich Airport has come to the conclusion that the global minimum tax that has to be paid in accordance with the national regulations for Pillar 2 is an income tax within the scope of IAS 12. The Group has applied the temporary, mandatory exception for the recognition of de­ferred taxes that result from the introduction of the global mini­mum tax and reports these as actual tax expense/income at the time they arise. There were no accounting effects in the 2025 fiscal year.

14. Obligations from employee benefits Summary

Payments for defined contribution plans are recognized through profit or loss in the period in which the employees entitled to benefits render the services that give rise to the entitlement. Munich Airport pays contributions to Deutsche Rentenversicherung (a state plan) and to the supplementary welfare fund of the Bayerische Versor­gungskammer. There are no obligations beyond the payment of contributions.

Provisions are recognized for obligations arising from defined benefit plans. The valuation is based on the «Projected Unit Credit Method». This method reflects the actuarial present value of the pension entitlement already earned. The present value of the defined benefit obligation considers expected salary and pension increases and the life expectancy of the persons entitled to the plan. The mea­surement of claims for health insurance benefits is based on actu­arial assumptions regarding the future health care cost trend. Dis­count rates are derived from the yield curves for high-quality corpo­rate bonds as of the valuation date. Pension payments and health care costs are made from operating cash flows. There are no plan assets.

Top-up payments that are made on the basis of a partial retirement agreement are accounted for in accordance with the principles for other long-term employee benefits.

Other long-term employee benefits include provisions for long-service anniversaries, provisions for obligations under partial retirement agreements (outstanding settlement amounts and top-up payments) and other subsidized deferred compensation.

The principles and methods for measuring the liability are the same as presented above. Benefits paid in the course of partial retirement agreements are covered by plan assets. The present value of the liability is offset against the fair value of these assets. Any asset surplus is shown under other assets.

15. Other provisions

If the present value of an obligation deviates significantly from the nominal amount, provisions are recognized at the present value of the expected obligation. The risks inherent in the obligation are taken into account when calculating the expected outflows of resources, and are discounted at a risk-free pre-tax rate.

At the Group level, loan commitments result from the consideration of subsidiaries and joint ventures that are not consolidated due to their materiality. Subsidiaries and joint ventures are entitled to avail of a committed loan amount at previously stipulated conditions. For these loan commitments, the expected loan loss must be deter­mined on the basis of the possible payment obligation using the gen­eral approach.

16. Revenue

In terms of revenue recognition, the Munich Airport tariff regulation forms the legal basis for the use of, and the remuneration for, the operation and provision of airport infrastructure. In this context, charges that require the approval of the aviation authorities in accordance with Section 19b of the Luftverkehrsgesetz (LuftVG – German Air Traffic Act) represent a portion of revenues that are generally realized over time at the time of daily invoicing. The transaction price is divided into fixed agreed charges and variable considerations (revenue reductions). Liabilities for refund of parts of the transaction price may arise for Munich Airport from the vari­able consideration (refund liabilities). The effect of the revenue re­duction is estimated using the expected value method and is based on historical information. The estimate is based on the assumption that a revenue reduction must be recognized immediately, if the probability of occurrence cannot be excluded with a very high level of probability. The expected value must be reviewed again on the basis of the information at the end of the reporting period and ad­justed if required.

Revenue from retail is realized on a point in time basis, where the relevant point in time is the time that the payment transaction is completed. The transaction price consists of the pricing of the goods and variable considerations (revenue reductions). Variable consider­ations are estimated using the expected value method on the basis of historical information, which is based on the assumption that sev­eral events may occur.

Revenue from rental and leasing is recognized over the lease term in accordance with IFRS 16. The leases are operating leases.

17. Calculation of fair value Summary

a) Measurement at fair value

Munich Airport measures derivative financial instruments contin­u­ous­ly at the fair value.

Investments in subsidiaries and joint ventures that are not included in the scope of consolidation due to their insignificance are measured at cost for simplification purposes.

All non-financial assets are measured at amortized cost.

The following methods and parameters were applied in the calcula­tion of the fair value:

The methods are the same as those applied in the previous year.

b) Disclosure of fair value

These financial statements contain disclosures on the fair value of investment property and on financial instruments measured at amortized cost.

The following methods and parameters were applied in the calcula­tion of the fair value for measurement purposes:

The methods are the same as those applied in the previous year.