2 Basis of preparation and changes to accounting policies
2.1 Basis of preparation
These condensed consolidated interim financial statements as at June 30, 2025 have been prepared in accordance with IAS 34 of the IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB), as adopted by the European Union.
The accounting policies, presentation and methods of computation are consistent with those applied in the preparation of FMO’s consolidated annual financial statements for the year ended December 31, 2024. The condensed consolidated interim financial statements do not include all of the information required in a complete set of financial statements prepared in line with IFRS as endorsed by the EU. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in FMO's financial position and performance since the last annual financial statements. These condensed consolidated interim financial statements should be read in conjunction with FMO’s consolidated annual accounts as at December 31, 2024.
2.2 Group accounting and consolidation
The company accounts of FMO and the company accounts of the subsidiaries Asia Participations B.V., FMO Investment Management B.V., FMO Representative Office LAC Limitada, the FMO Ventures Program and the Land Use Facility (LUF, within the Dutch Fund for Climate and Development (DFCD) program) are consolidated in these condensed consolidated interim financial statements. The entities except for the FMO Ventures Program are 100 percent owned by FMO.
FMO Representative Office LAC Limitada is FMO's representative entity in Costa Rica. The consolidation of this entity does not have a material impact on FMO's statement of financial position. Asia Participations B.V. and Equis DFI Feeder L.P. provide equity capital to companies in developing economies. FMO Investment Management B.V. carries out portfolio management activities for third party investment funds, which are invested in FMO’s transactions in emerging markets and developing economies.
The FMO Ventures Program and the LUF are programs involving FMO, the Dutch State and European Commission. The FMO Ventures Program facilitates investments in young startups and scale ups while LUF facilitates investments specifically in sectors relating to agroforestry, sustainable land use and climate resilient food production. These programs are structured entities that have been designed so that voting or similar rights are not a dominant factor in deciding who controls the entity and relevant activities are directed by means of contractual arrangements. FMO has control over direct relevant investment decisions and returns of these programs. Therefore, FMO has consolidated the FMO Ventures program and LUF (for the first time in the 2024 financial year) on FMO’s statement of financial position.
2.3 Foreign currency translation
The condensed consolidated interim financial statements are stated in euros, which is the presentation and functional currency of FMO. All amounts are denominated in thousands of euros unless stated otherwise. In accordance with IAS 21, foreign currency transactions are translated to euro at the exchange rate prevailing on the date of the transaction. At the statement of financial position date, monetary assets and liabilities are reported using the closing exchange rate. Non-monetary assets that are not measured at cost denominated in foreign currencies are reported using the exchange rate that existed when fair values were determined.
2.4 Adoption of new standards, interpretations and amendments
There are no new standards, interpretations or amendments adopted by the EU that have an impact on FMO.
2.5 Standards issued but not yet effective
FMO has assessed recently completed amendment and standard development projects expected to be effective from 2026 to 2027, FMO does not expect these amendments and new standards to have a significant impact on its consolidated financial statements, except for IFRS 18 Presentation and Disclosure in Financial Statements, which replaces IAS 1 Presentation of Financial Statements. FMO is in the process of establishing the materiality of the impact of IFRS 18. The relevant and more detailed impact assessment will be disclosed in the financial statements, as appropriate, when they have been endorsed for application within the European Union by the European Financial Reporting Advisory Group (EFRAG).
2.6 Estimates and assumptions
In preparing the condensed consolidated interim financial statements in conformity with IAS 34, management is required to make estimates and assumptions affected reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. The same methods for making estimates and assumptions have been followed in the condensed consolidated interim financial statements as were applied in the preparation of FMO’s consolidated annual accounts as at December 31, 2024.
2.7 Segment Reporting
The operating segments are reported in a manner consistent with internal reporting to FMO’s chief operating decision maker. The chief operating decision maker who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Management Board. FMO presents its operating segments based on servicing unit. Reference is made to the Segment Information note for more details on operating segments.