Page 21 - Annual Report KELAG Group 2018
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recognised as derivatives pursuant to IFRS 9 are excluded from the requirements of IFRS 15. These
                                      are only treated as revenue pursuant to IFRS 15 if they are physically fulfilled (i.e., if the own use
                                      exemption is exercised).

                                      Aside from the requirement to make further disclosures on revenue in the notes, implementing
                                      IFRS 15 in the KELAG Group had a negligible effect. This is primarily due to the fact that an analysis
                                      of the agreements for electricity, gas and heating and of the rendering of grid and energy services
                                      has  shown  that in each  case  revenue  recognition  under  IFRS  15  will  be  in  line  with  revenue
                                      recognition patterns under IAS 18, either as a collective of performance obligations from a series
                                      of similar (supply) obligations or as a stand-ready obligation. In this connection, the KELAG Group
                                      applies the practical expedient of IFRS 15.B16, thereby recognising revenue based on the invoiced
                                      amount, provided that the pertinent requirements are met. In the course of the implementation
                                      of IFRS 15, the issues of gross or net presentation, especially in connection with the principal-
                                      agent topic,  were  examined,  along  with  the existence  of contracts  with several performance
                                      obligations. With  regard to  the principal-agent topic,  it  was  found  that  the  previous method
                                      pursuant to IAS 18 corresponds to the requirements of IFRS 15. The analysis also showed that
                                      contracts with customers containing several performance obligations resulting in different timing
                                      for revenue currently only play an insignificant role in the KELAG Group.

                                      One  amendment  in  the  KELAG  Group  made  because  of  IFRS 15  is  a  new  presentation  of
                                      connection cost contributions from the heating business, which used to be reported under other
                                      liabilities and are now uniformly presented with other contract liabilities under construction cost
                                      subsidies, which previously mainly contained construction cost subsidies from the electricity and
                                      gas segments. This resulted in a EUR 16.6m increase in the construction cost subsidies item in the
                                      statement  of  financial  position  as  of  1 January  2018,  from  EUR 84.1m  to  EUR 100.7m;  the
                                      statement of financial position item other liabilities fell by the same amount from EUR 46.2m to
                                      EUR 29.6m. As this reclassification was not cash-effective, it was corrected in the statement of cash
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