On has adopted the following amendments for fiscal year 2023. The amendments did not have a material impact on the consolidated financial statements.

Description

Standard Reference

IASB Effective Date

Presentation of Financial Statements,

Disclosure of Accounting Policies

Amendments to IAS 1

January 1, 2023

Accounting Policies, Changes in Accounting Estimates and Errors

Amendment to IAS 8

January 1, 2023

Deferred Tax related to Assets and Liabilities arising from a Single Transaction

Amendments to IAS 12

January 1, 2023

Insurance Contracts

IFRS 17

January 1, 2023

International Tax Reform—Pillar Two Model Rules(1)

Amendments to IAS 12

May 23, 2023

In October 2021, OECD published key parameters and rules on a minimum tax rate of 15% (Pillar Two) for multinational enterprises with revenue of more than EUR 750 million, such as our business. Many jurisdictions in which we are subject to income taxes, global minimum tax rules have been enacted, or substantively enacted, which can impose detailed reporting obligations and increase compliance and systems-related costs on our businesses. In Switzerland, where the Group is headquartered, the enacted legislation is currently limited to the introduction of a Qualified Domestic Top-up Tax effective 1 January 2024.

We have applied the temporary exception issued by the IASB in May 2023 from the accounting requirements for deferred taxes in IAS 12. Accordingly, we neither recognizes nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

As an integral part of the rule set, the OECD has published transitional Country-by-Country Report (CbCR) Safe Harbor rules, with the purpose to remove the obligation of calculating the Pillar Two effective tax rate for operations in lower-risk jurisdictions during the initial years when the rules take effect. In applying the transitional CBCR Safe Harbor rules on the fiscal year end 2023 consolidated financial statements, the majority of the jurisdictions are expected to qualify for the transitional CbCR Safe Harbor rules.

Further, at the date of authorization of these consolidated financial statements, On has not applied the following new and revised IFRS Accounting Standards that have been issued by the IASB but are not yet effective:

Description

Standard Reference

IASB Effective Date

Classification of Liabilities as Current or Non-current

Amendments to IAS 1

January 1, 2024

Non-current Liabilities with Covenants

Amendments to IAS 1

January 1, 2024

Supplier Finance Arrangements

Amendments to IAS 7 and IFRS 7

January 1, 2024

Sale and Leaseback Transactions

Amendment to IFRS 16

January 1, 2024

Lack of Exchangeability

Amendments to IAS 21

January 1, 2025

On does not expect that the adoption of the standards listed above will have a material impact on the financials of On in the current or future reporting periods.