IBERSOL | 2019 Annual Report

2019 ANNUAL REPORT On October 31, 2018, the IASB issued amendments to its definition of materiality to facilitate companies in making materiality judgments. The changes consist of: - replace the term “can influence” with “can reasonably be considered to be able to influence”; - include the concept of “concealment” together with the concepts of “omission” and “distortion” of information in the definition of materiality; - clarify that the “users” referred to are the main users of the general financial state- ments referred to in the Conceptual Framework; - align the definition of materiality between IFRS publications. The amended definition of materiality therefore states that “Information is material if it can be reasonably considered that its omission, distortion or concealment may influence the decisions that the primary users of general financial statements will make based on those same financial statements, that provide financial information for a particular reporting entity. ” The changes are effective from January 1, 2020, but can be applied in advance. 2) Changes to references to the conceptual structure in IFRS standards In March 2018, the IASB issued a comprehensive set of concepts for financial re- porting, the revised Conceptual Framework for financial reporting (Conceptual Fra- mework), which aims to update, in existing standards, the references and citations of the existing version of the Conceptual Framework or the which was replaced in 2010, replacing them with references to the revised Conceptual Framework. The revised Conceptual Framework has an effective adoption date of January 1, 2020 - with early adoption permitted - for companies that use the Conceptual Fra- mework to develop accounting policies when no IFRS standard applies to a specific transaction. 3) Amendments to IFRS 9, IAS 39 and IFRS 7 On September 26, 2019, the IASB issued amendments to IFRS 9, IAS 39 and IFRS 7. The amendments modify certain specific hedge accounting requirements to allevia- te the potential effects of the uncertainty caused by the IBOR reform. In addition, the changes require companies to provide additional information to investors about their hedging relationships, which are directly affected by these uncertainties. The amendments provide exceptions for entities to apply hedge accounting requi- rements, assuming that the interest rate reference index, on which the hedged risk or the hedged cash flows of the hedged item or the cash flows of the hedging instrument are based, is not changed as a result of the IBOR reform. The proposed exceptions apply only to hedge accounting requirements and the changes do not 215