IBERSOL | Integrated Management Report 2022

Consolidated Financial Statements Standards Change Date of application Property, Plant and Equipment – Proceeds before Intended Use, Amendments to IAS 16 Property, Plant and Equipment In May 2020, the IASB issued Property, Plant and Equip- ment—Proceeds before Intended Use, which made amendments to IAS 16 Property, Plant and Equipment. The Amendments would prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in a manner intended by man- agement. Instead, an entity would recognise those sales proceeds in profit or loss. The Amendments shall be applied retrospectively for an- nual periods beginning on or after 1 January 2022, with earlier application permitted. 1 January 2022 Onerous Contracts - Cost of Fulfilling a Contract In May 2020, the IASB issued Onerous Contracts—Cost of Fulfilling a Contract, which made amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets. The objective of the Amendments is to clarify the require- ments of IAS 37 on onerous contracts regarding the as- sessment of whether, in a contract, the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The Amendments shall be applied for annual periods be- ginning on or after 1 January 2022, with earlier applica- tion permitted. 1 January 2022 Annual Improvements to IFRS Standards 2018 – 2020 On 14 May 2020, the IASB issued Annual Improvements to IFRS Standards 2018–2020 containing the following amendments to IFRSs: (a) permit an entity that is a subsidiary, associate or joint venture, who becomes a first-time adopter later than its parent and elects to apply paragraph D16(a) of IFRS 1 First-time Adoption of International Financial Reporting Standards, to measure the cumulative translation differences using the amounts reported by the parent, based on the parent’s date of transition to IFRSs; (b) clarify that the reference to fees in the 10 per cent test includes only fees paid or received between the borrower and the lender, including fees paid or received by either the borrower or lender on the other’s behalf; (c) remove the potential confusion regarding the treatment of lease incentives applying IFRS 16 Leases as was illustrated in Illustrative Example 13 accompanying IFRS 16; and (d) remove the requirement in paragraph 22 of IAS 41 Agriculture for entities to exclude cash flows for taxation when measuring fair value applying IAS 41. The Amendments shall be applied for annual periods be- ginning on or after 1 January 2022, with earlier applica- tion permitted. 1 January 2022 392