Information checkedInformation unaudited Information geprüft Information ungeprüft Accounting principles

1.1 Basis for financial accounting

This interim financial reporting was prepared in accordance with the international accounting standard for interim financial reporting (IAS 34 “Interim Financial Reporting”). The accounting and valuation principles employed in the unaudited consolidated interim financial report correspond to those used in the 2022 annual report, which was prepared in accordance with international financial reporting standards (IFRS) and the requirements stipulated in Article 17a of the Person and Company Law Ordinance of the Principality of Liechtenstein.

The unaudited interim financial reporting 2023 does not encompass all the data contained in the audited 2022 consolidated financial statement and should, therefore, be read together with the audited consolidated financial statement as at 31 December 2022.

1.2 Use of estimates in the preparation of financial statements

Areas having large scope for estimate judgements, which are of great significance for the financial statement, include estimates for expected credit losses, goodwill, provisions, fair value measurement, and liabilities for pension plans. Explanations regarding this point are shown under notes 12 and 13 in the 2023 consolidated interim financial statement and under notes 13, 17, 25 and 33, as well as in the chapter "Pension plans and other long-term benefits“ in the 2022 consolidated financial statement.

The LLB Group updates the actuarial assumptions and parameters used for the calculation of pension obligations on every reporting date.

1.3 New IFRS, amendments and interpretations

New IFRS, as well as revisions and interpretations of existing IFRS, which are to be applied for financial years beginning on 1 January 2023 or later, were published, or came into effect. 

1.3.1 Changes to accounting policies effective from 1 January 2023

The following new or amended IFRS or interpretations are relevant to the LLB Group and are applied for the first time from 1 January 2023:

• Amendments to IAS 1 "Material Accounting Policies“ – Clarification that in future entities disclose their material accounting policy information and not their significant accounting policies
• IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors“ – Clarification of the definition of accounting estimates to distinguish changes in accounting estimates from changes in accounting policies
• IAS 12 "Income Taxes“ – Clarification that deferred taxes are to be allocated for single transactions on initial recognition if equal amounts of deductable and taxable temporary differences arise from single transactions

The new or amended IFRS have no material influence on the financial statement of the LLB Group.

1.3.2 Applicable for financial years beginning on 1 January 2024

Currently, there are no new or amended IFRS or interpretations which are of relevance for the LLB Group.

In the first half of 2023 there were no changes to the scope of consolidation.

Within the scope of its operative activity, the LLB Group is exposed to financial risks such as market, credit, liquidity and refinancing risks, as well as operational risks. The current situation has not changed substantially in comparison with the situation as at 31 December 2022. Therefore, the 2023 consolidated interim financial reporting contains only qualitative disclosures regarding credit risks. For more detailed information, we refer to the 2022 annual report.

In terms of the value of its absolute loans, the credit portfolio of the LLB Group has not changed materially during the first half of 2023. In the case of stage 1 and 2 loans, a net allocation of CHF 0.4 million for expected credit risks (30.06.2022: CHF 0.0 million net change) and for stage 3 positions a net allocation of CHF 1.7 million was made (30.06.2022: CHF 3.4 million net allocation). Across all stages the expected credit losses led to a total expense of CHF 2.1 million (30.06.2022: CHF 3.4 million expense). This is reported in the consolidated income statement.

No material events occurred after the balance sheet date which would have a significant influence on the asset, financial and earnings position of the LLB Group.