IBERSOL | 2019 Annual Report

Consolidated Financial Statements The reconciliation of the responsibilities disclosed in the previous year and the res- ponsibilities with initial leasing are presented as follows: Commitments with operating leases disclosed on December 31, 2018 357.263.111 Contracts that do not fall under IFRS 16 under practical expedients (7.473.565) Liabilities with leases not discounted on January 1, 2019 349.789.546 Discount effect (66.151.009) Adjustments as a result of revaluations of estimates 5.266.723 Liabilities with leases discounted on January 1, 2019 288.905.260 Reclassification of finance lease liabilities 2.180.000 Lease liabilities recognized on January 1, 2019 291.085.260 b) IFRIC 23 - Uncertainty about tax treatment of income tax An interpretation was issued on 7 June 2017 on how to deal, with accounting, with uncertainties about the tax treatment of income taxes, especially when tax legisla- tion requires a payment to be made to the Authorities in the context of a tax dispute and the entity intends to appeal the understanding in question which led to making such payment. The interpretation came to define that the payment can be considered a tax asset, if it is related to income taxes, under the terms of IAS 12 applying the probability criterion defined by the standard as to the favorable outcome in favor of the entity on the matter dispute concerned. In this context, the entity can use the most probable amount method or, if the re- solution can dictate ranges of values in question, use the expected value method. The Group opted, in the transition, to adopt this interpretation prospectively, the cumulative effect of the initial application being recognized as of January 1, 2019. Therefore, this approach to the transition does not require the re-expression of com- parative information. IFRIC 23 was adopted by Commission Regulation EU 2018/1595, of 23 October and is mandatory for years beginning on or after 1 January 2019 and may be adopted in advance. The adoption of this standard did not impact the group’s financial statements. c) Other standards, changes and interpretations adopted in 2019 The improvements of the 2015-2017 cycle, issued by the IASB on December 12, 2017, introduce changes, with effective date for periods beginning on or after January 1, 2019, to IFRS 3 standards (remeasurement of the participation previously held as a joint operation) when it obtains control over the business), IFRS 11 (no remeasure- ment of the previously held interest in the joint operation when it obtains joint con- trol over the business), IAS 12 (accounting for all tax consequences of the payment of dividends consistently), IAS 23 ( treatment as general loans any loan originally made to develop an asset when it becomes fit for use or sale). 212