IBERSOL | Annual Report 2020

Consolidated Financial Statements (iv) remove the requirement in paragraph 22 of IAS 41 Agriculture for entities to ex- clude cash flows for taxation when measuring fair value by applying IAS 41. The changes will be applied for annual periods beginning on or after 1 January 2022, with early application permitted. e) Clarification of the requirements for classifying liabilities as current or non-current (changes to IAS 1 - Presentation of Financial Statements) On 23 January 2020, the IASB issued an amendment to IAS 1 Presentation of Fi- nancial Statements to clarify how to classify debt and other liabilities as current and non-current. The amendments clarify an IAS 1 criterion for classifying a liability as non-current: the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period. The amendments aim to: a. specify that an entity’s right to defer settlement must exist at the end of the re- porting period; b. clarify that the classification is not affected by Management’s intentions or expec- tations as to whether the entity will exercise its right to postpone liquidation; c. clarify how loan conditions affect classification; and d. clarify the requirements for classifying liabilities that an entity will settle, or may settle, through the issuance of its own equity instruments. This change is effective for periods after 1 January 2023. f) IFRS 17 - Insurance Contracts To be developed only for insurance companies or insurance subsidiaries. Otherwise refer that it is not applicable. On 18 May 2017, IASB issued a standard that came to replace IFRS 4 and completely reform the treatment of insurance contracts. The standard introduces significant changes to the way in which the performance of insurance contracts is measured and presented, with different impacts also in terms of financial position. The stand- ard provides for its application for years beginning on or after 1 January 2023. The Group did not proceed with the early application of any of these standards in the financial statements for the period ended 31 December 2020, as their applica- tion is not mandatory. No significant impacts are expected on the financial state- ments resulting from their adoption. The following standards / amendments have recently been published: “Amendments to IFRS 16 Leases: COVID 19 Rent concession beyond 30 June 2021”, “” Disclosure of accounting policies (amendments to IAS 1 - Presentation of financial statements 316