IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT 1) IFRS 9 (Amendment) - Prepayment characteristics with negative offset Financial assets that contain negative prepayment features can now be measured at amortized cost or at fair value through comprehensive income (OCI) if they meet the relevant criteria of IFRS 9. The IASB also clarified that IFRS 9 requires preparers the recalculation of the amortized cost of modifying financial liabilities by discoun- ting contractual cash flows using the original effective interest rate (EIR), with any adjustment being recognized through profit or loss for the period (aligning the pro- cedure already required for financial assets). This amendment was adopted by Com- mission Regulation EU 2018/498 and is mandatory for years beginning on or after 1 January 2019, with early adoption permitted. This change to the standard did not impact the group’s financial statements. 2) IAS 28 (Amendment) - Long-term interests in Associates and Joint Ventures In October 2017, the IASB issued changes to IAS 28 regarding long-term interests in associates and joint ventures. The amendments clarify that IFRS 9 applies to financial instruments in associates or joint ventures to which the equity method is not applied, including long-term interests. Changes must be applied retrospectively in annual periods beginning on or after 1 January 2019. This change to the standard did not impact the group’s financial statements. 3) IAS 19 (Amendment) - Alterations, cuts or settlements of the attributed benefit plan In February 2018, the IASB issued changes to IAS 19. The changes clarify the accoun- ting when there is a change, reduction or settlement in the attributed benefit plan. The changes now specify that an entity should use the updated assumptions for remeasurement of its net defined benefit liability (asset) to determine the current cost of the service and net interest for the remainder of the reporting period after the change in the plan. The changes result in a different allocation of total comprehensive income between cost of service, interest and other comprehensive income. The changes apply prospectively to changes, cuts or settlements of attributed be- nefit plans that occur on or after the beginning of the first annual reporting period beginning on or after January 1, 2019. d) Standards, changes and interpretations issued (but not yet effective for the company), for which no significant impacts are estimated: Changes to IFRS 3 - Business Concentration On October 22, 2018, the IASB issued changes to its business definition. 213

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