IBERSOL | Annual Report 2021

ANNUAL REPORT 2021 (ii) clarify that the reference to fees in the 10 percent test includes only fees paid or received between the borrower and the lender, including fees paid or received by the borrower or the lender 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 accompanying IFRS 16; and (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 apply for annual periods beginning on or after January 1st, 2022, with early application permitted. The Group/Entity is currently evaluating the impacts that this standard will have on its financial statements. This change is effective for periods after January 1, 2023. e) Amendments to IAS 1 – Presentation of Financial Statements and IFRS Practice Statement 2: Disclosures of Accounting Policies Following feedback obtained on the need for more guidance to help companies de- cide on what information to disclose regarding accounting policies, the IASB issued on February 12th, 2021 amendments to IAS 1 – Presentation of financial statements and to the IFRS Practice Statement 2 – Making materiality judgments. The main changes to IAS 1 include: i) requiring entities to disclose information re- garding material accounting policies rather than significant accounting policies, ii) clarifying that accounting policies related to intangible transactions are also imma- terial and as such do not need to be disclosed and iii) clarify that not all account- ing policies relating to material transactions are themselves material to an entity’s financial statements. The IASB also amended IFRS Practice Statement 2 to include guidance and two ad- ditional examples on the application of materiality to accounting policy disclosures. These changes are consistent with the revised definition of material: “Information regarding accounting policies is material if, when considered together with other information included in an entity’s financial statements, it is reasonably expected to influence the decisions that major users of financial statements gener- ally make on the basis of those financial statements.” The changes are effective as of January 1st, 2023, but early application is permitted. f) Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates The IASB issued amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to clarify how entities should distinguish changes in account- ing policies from changes in accounting estimates, with a primary focus on defining and clarifying accounting estimates. 339