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2 Basis of preparation

(a) Accounting policies

The financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS). The AL&C Fund applied all standards effective on or before 31 December 2023 to these IFRS financial statements.

A number of new standards, amendments to standards, and interpretations are effective for annual periods beginning after 1 January 2023, and have not been applied in preparing these financial statements.

Of those standards that are not yet effective, no standards are expected to have a material impact on the AL&C Fund in the period of initial application.

The following amended standards and interpretations are not expected to have a significant impact.

Effective date 1 January 2024:

  • Non-current Liabilities with Covenants – Amendments to IAS 1 and Classification of Liabilities as Current or Non-current – Amendments to IAS 1

  • Lease Liability in a Sale and Leaseback – Amendments to IFRS 16

  • Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7

  • IFRS S1** General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2** Climate-related Disclosures

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:

  • investment property including assets under construction are measured at fair value.

(C) Cunctional and presentation currency

These financial statements are presented in euros (EUR), which is the AL&C Fund’s functional currency. All financial information presented in euros has been rounded to the nearest thousand.

(d) Use of estimates and judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future period affected.

Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included under the paragraph Investment property.

(e) Changes in significant accounting policies

The AL&C Fund initially applied a number of other new standards, with effect from 1 January 2022 but they do not have a material effect on the AL&C Fund’s financial statements.

(f) Going concern

The financial statements have been prepared on a going concern basis.