IBERSOL | Annual Report 2021

CONSOLIDATED FINANCIAL STATEMENTS The amendments introduce a new definition for accounting estimates: clarifying that monetary values ​in the financial statements are subject to measurement uncertainty. The amendments also clarify the relationship between accounting policies and ac- counting estimates, specifying that an entity develops an accounting estimate to achieve the objective established by an accounting policy. The effects of changes in such data or measurement techniques are changes in accounting estimates. The changes are effective for periods beginning on or after January 1st, 2023, with earlier application permitted, and will apply prospectively to changes in accounting estimates and changes in accounting policies that occur on or after the start of the first annual reporting period to which the entity applies the changes. 2.2.3. Standards and interpretations, amended or revised, not approved by the European Union: The following standards, interpretations, amendments and revisions, with manda- tory application in future financial years, were not, until the date of approval of these financial statements adopted (“endorsed”) by the European Union: a) Clarification of the requirements for classifying liabilities as current or non-current (amendments to IAS 1 – Presentation of Financial Statements) The IASB issued on 23rd January 2020 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 a criterion in IAS 1 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 changes aim to: i. specify that an entity’s right to defer settlement must exist at the end of the reporting period; ii. clarify that the classification is not affected by management’s intentions or expectations about whether the entity will exercise its right to defer settlement; iii. clarify how loan conditions affect the rating; and iv. clarify the requirements for classifying liabilities that an entity will settle, or may settle, by issuing its own equity instruments. b) Amendments to IAS 12: deferred tax related to assets and liabilities arising from a single transaction The IASB issued amendments to IAS 12 - ‘Income Taxes’ on 7th May 2021. The amendments require companies to recognize deferred taxes on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. In certain circumstances, companies are exempt from recognizing deferred taxes when they first recognize assets or liabilities. Previously, there was some uncertainty as to whether the exemption applied to transactions such as leases and decommis- 340