IBERSOL | Annual Report 2020

ANNUAL REPORT 2020 together, contribute significantly to the ability to create outputs. The amendments also clarify that a set of activities and assets can qualify as a business without in- cluding all the inputs and processes necessary to create outputs, or including the outputs themselves, replacing the term “ability to create outputs” with “ability to contribute to creating outputs “. It is no longer necessary to assess whether market participants are able to substi- tute missing inputs or processes (for example, integrating acquired activities and assets) and continue to produce outputs. The changes focus on whether the inputs acquired and the substantive processes acquired together contribute significantly to the ability to create outputs. The amendments must be applied to transactions whose date of acquisition is on or after the beginning of the first annual reporting period beginning on or after 1 Janu- ary 2020, with early application permitted. If entities apply the changes in advance, they must disclose that fact. This change to the standard did not impact the Group’s financial statements. 2.2.2. The Group decided to opt for the early application of the following stand- ards and / or interpretations, adopted by the European Union: a) Covid 19 - Rent concessions Amendment to IFRS 16 In May 2020, IASB issued “Covid-19 – Rent concessions”, which amended IFRS 16 Leases. If certain conditions are met, the change allows tenants not to assess whether certain Covid-19-related rent concessions are lease modifications. Instead, lessees applying the practical expedient should account for these rental concessions as if they were not modifications of the lease, so that, for example, the rental amount cancelled on or before 30 June 2021 is recognized in profit or loss. in the same year in which the concession is granted, instead of being awarded over the duration of the contract, as would be the case if the practical expedient was not allowed. The change must be applied for annual periods beginning on or after 1 June 2020. Early application is permitted. The Group chose early application, since from the perspective of management it results in an improvement in the reading of the financial statements, and the ap- plication of this practical expedient had an impact on the Group’s results (Note 22). The Group applied this practical expedient to all concessions at the level of rents that fulfil the conditions set out in the amendment.. 2.2.3. The Group decided to chose early application of the following standards and / or interpretations, adopted by the European Union: a) Reform of the Interest Rate Reference Index - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) 313