{
  "docId": "019dd923-5eff-723e-9be7-5d6e73ab277d",
  "docSlug": "f9e84ffd149e06c5",
  "documentTitle": "2025 Annual Report",
  "authorId": "Lufthansa",
  "authorName": "Lufthansa Group",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "strategy_consulting",
  "sourceTypeLabel": "Strategy consulting",
  "presentationDate": null,
  "orientation": "landscape",
  "aspectRatio": 1.414,
  "pageNumber": 358,
  "pageCount": 414,
  "prevPage": 357,
  "nextPage": 359,
  "slideType": "appendix_disclosure",
  "function": "summarize",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "This is a page from the Lufthansa Group Annual Report 2025, specifically the Independent Auditor's Report section.",
  "elementsJson": [
    "paragraph"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-5eff-723e-9be7-5d6e73ab277d/358",
  "deckHref": "/decks/019dd923-5eff-723e-9be7-5d6e73ab277d",
  "deckJsonHref": "/decks/019dd923-5eff-723e-9be7-5d6e73ab277d.json",
  "deckAnchorHref": "/decks/019dd923-5eff-723e-9be7-5d6e73ab277d#slide-358",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "Our audit procedures did not give rise to any reservations regarding the recognition of traffic revenue, including the recognition of liabilities from unused flight documents and customer loyalty programs.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-78b2-7055-a46c-96bfb94a7650",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.105,
        "w": 0.416,
        "x": 0.083,
        "y": 0.178
      },
      "kind": "paragraph",
      "text": "With regard to services related to IT systems and processes outsourced to third parties, we assessed, with the aid of internal IT specialists, the design and operating effectiveness of the internal control system regarding those IT systems and/or processes relevant for the recognition of traffic revenue, using an assurance report (ISAE 3402 Type 2) on the design and operating effectiveness of the internal control system at the service organization.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "48716e39-3c6a-4f56-9af9-f56737a19ff8",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.416,
        "x": 0.083,
        "y": 0.548
      },
      "kind": "paragraph",
      "text": "In particular, we assessed the Group's accounting approach with regard to the requirements for revenue recognition pursuant to IFRS 15. In doing so, we focused on whether Deutsche Lufthansa Aktiengesellschaft and its subsidiaries identified separate performance obligations within a contract, determined a transaction price and allocated it to the separate performance obligations and timed the recognition of revenue in accordance with the provisions of IFRS 15.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "4c2fbb0e-c2a4-48d3-9cc4-32a0e5691af3",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.065,
        "w": 0.416,
        "x": 0.531,
        "y": 0.178
      },
      "kind": "paragraph",
      "text": "the plausibility of future expected usage rates for unused flight documents that are used to calculate breakage revenue based on past usage rates and the information on the passengers' expected future flight patterns provided to us by the executive directors.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "6c7d2793-4a57-4dd9-a964-d89294c5d677",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.416,
        "x": 0.531,
        "y": 0.703
      },
      "kind": "paragraph",
      "text": "Reference to related disclosures\nWith regard to the accounting policies used for revenue recognition and contract liabilities, and the related use of judgment, we refer to the disclosures under “2. New IFRS Accounting Standards and summary of the material accounting policies,” “3. Traffic revenue” and “40. Current contract liabilities” in the notes to the consolidated financial statements.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "893cd2b0-8053-4e76-bfd8-b70b5013cbea",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.105,
        "w": 0.416,
        "x": 0.083,
        "y": 0.653
      },
      "kind": "paragraph",
      "text": "During our audit, we reviewed, with regard to the breakage revenue recognized upon the derecognition of contract liabilities from unused flight documents (release), outstanding valid flight documents and their valuation with regard to their sales year and validity. Moreover, we assessed the consistency of the calculation methods used to determine flight prices, fees, taxes and other charges allocable to flight documents that are no longer expected to be used.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "9b3c11a9-f428-49f3-941f-f7cc05fdd5a0",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.065,
        "w": 0.416,
        "x": 0.531,
        "y": 0.451
      },
      "kind": "paragraph",
      "text": "During our audit, we also evaluated the recognition of breakage revenue from customer loyalty programs for participants in the Miles & More program. With regard to the contract liabilities from customer loyalty programs, we assessed the calculation methods applied to determine the release ratios for adequate consistency.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a3d35797-5183-4403-b698-5b5943c29f29",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.085,
        "w": 0.416,
        "x": 0.083,
        "y": 0.299
      },
      "kind": "paragraph",
      "text": "Using substantive analytical procedures, we examined whether the revenue generated in fiscal year 2025 correlates with the corresponding contract liabilities from unused flight documents and whether revenue from customer loyalty programs correlates with the corresponding payments received to identify any irregularities in the accounting treatment.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "aa2106b5-4c80-48e2-9cae-b4f9d8448cab",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.015,
        "w": 0.18,
        "x": 0.312,
        "y": 0.056
      },
      "kind": "title",
      "text": "Independent auditor's report",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "df7d58e6-c5e6-429e-83b5-5e3d00d445aa",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 414,
      "from": 251,
      "beatId": "019debc8-a195-77f8-abd5-1c04c5a80119",
      "arcName": "The Triple Take",
      "arcSlug": "triple-take",
      "beatName": "The Action (Now What)",
      "beatSlug": null,
      "evidence": "Forecast, financial statements, auditor opinion, remuneration, SDG/TCFD index",
      "position": 3,
      "confidence": 60,
      "parentBeatName": null,
      "parentBeatSlug": null
    }
  ],
  "loops": [],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}