These unaudited financial statements are the interim condensed consolidated financial statements of Tecan Group Ltd. and its subsidiaries (together referred to as the ‘Group’) for the six-month period ending June 30, 2023. The financial statements are prepared in accordance with International Accounting Standard (IAS) 34 ‘Interim Financial Reporting’ and should be read in conjunction with the consolidated financial statements 2022 as they provide an update of previously reported information. The interim condensed consolidated financial statements were authorized for issue on August 10, 2023.
The preparation of these interim condensed consolidated financial statements requires management to make assumptions and estimates that affect the reported amounts of revenues, expenses, assets, liabilities, and disclosure of contingent liabilities at the date of these interim condensed consolidated financial statements. If in the future such assumptions and estimates deviate from the actual circumstances, the original assumptions and estimates will be modified as appropriate in the period in which the circumstances change.
The Group operates in industries where significant seasonal or cyclical variations in total sales are not experienced during the financial year.
Income tax expense is recognized based on the best estimate of the weighted average annual income tax rate expected for the full financial year.
COVID-19 pandemic – Although the Group does not offer COVID-specific products, the company's instruments and consumables have been used for PCR-based COVID-19 testing during the COVID-19 pandemic. For 2023, the Group does not expect any material COVID-related sales.
Global supply chains – During the last two years, global supply chains faced significant challenges in logistics and the timely availability of certain materials and parts, especially with regards to the supply chain for electronic components. Through various mitigation actions, Tecan was able to avoid any major disruption in its ability to produce and deliver products to customers. As one of these measures, the Group also increased its own inventories levels. These safety stocks have been reduced in the first half of 2023 as the development of global logistics has continued to improve. Delivery times, especially for electronic components, are still long, but delivery reliability for most parts has also improved.
The accounting policies applied in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the annual consolidated financial statements 2022, except for the adoption of the following amended standards, effective as from January 1, 2023:
IAS 1 ‘Presentation of Financial Statements’ amended – Disclosure of Accounting Policies
IAS 8 ‘Accounting Policies, Changes in Accounting Estimates and Errors’ amended – Definition of Accounting Estimates
IAS 12 ‘Income Taxes’ amended – Deferred Tax related to Assets and Liabilities arising from a Single Transaction
IAS 12 ‘Income Taxes’ amended – International Tax Reform – Pillar Two Model Rules
- IAS = International Accounting Standards
The Group has adopted ‘International Tax Reform – Pillar Two Model Rules – Amendments to IAS 12’ upon their release in May 2023. The amendments provide a temporary mandatory exception from deferred tax accounting for the top-up tax, which is effective immediately, and require new disclosures about the Pillar Two exposure as from December 31, 2023.
The adoption of the amended standards did not result in material changes to the Group’s accounting policies.