IBERSOL | Annual Report 2020

ANNUAL REPORT 2020 after 1 January 2022. Early application is permitted if, at the same time or rather, an entity also applies all changes made to “Changes to references to the Conceptual Framework in IFRS standards”, issued in March 2018. b) Property, plant and equipment - Revenue before intended use, changes to IAS 16 Property, plant and equipment In May 2020, IASB issued “Property, plant and equipment - Revenue before Intended Use”, which amended IAS 16 Property, plant and equipment. The amendments prohibit the deduction at cost of an item of property, plant and equipment, of any revenue from the sale of items produced by bringing that asset to the location and condition necessary for it to be able to operate in the manner intended by management. Instead, the entity shall recognize these sales revenues in profit or loss. The amendments must be applied retrospectively for annual periods beginning on or after 1 January 2022, with early application permitted. c) Onerous Contracts - Cost of fulfilling a contract In May 2020, IASB issued “Onerous Contracts - Cost of Completing a Contract”, which amended IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The purpose of the amendments is to clarify the requirements of IAS 37 on onerous contracts regarding to valuation if, in a contract, the unavoidable costs of meeting the obligations arising from the contract exceed the economic benefits expected from it. The amendments must be applied for annual periods beginning on or after 1 January 2022, with early application permitted. d) Improvements in the 2018-2020 cycle On 14 May 2020, IASB issued improvements to IFRS 2018–2020 containing the fol- lowing changes: (i) allow an entity, as a subsidiary, associate or joint venture, that adopts IFRS for the first time after its parent company and chooses to apply paragraph D16 (a) of IFRS 1 First Time Adoption of International Financial Reporting Standards, can measure cu- mulative translation differences using the amounts reported by the parent company, based on the respective date of transition to IFRS; (ii) clarify that the reference to fees in the 10 percent test includes only fees paid or received between the borrower and the creditor, including fees paid or received by the borrower or the creditor on behalf of the other (IFRS 9); (iii) remove potential confusion regarding the treatment of lease incentives by ap- plying IFRS 16 Leases, as illustrated in Illustrative Example 13 that accompanies IFRS 16; and 315