IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 Goodwill and fair value adjustments arising from the acquisition of foreign entities are treated as assets and liabilities of that entity and translated to Euro at the balance sheet date exchange rate. Whenever a foreign entity is sold, the accumulated exchange rate difference is recog- nized in the income statement as a gain or loss on the disposal. 2.2. New standards, amendment and interpretation Standards Change Date of application Standards and amendments endorsed by the European Union and mandatory for financial years beginning on or after 1 January 2023 Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies Following feedback that more guidance was needed to help companies decide what accounting policy information should be disclosed, the Board has today issued amend- ments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements. The key amendments to IAS 1 include: i) requiring compa- nies to disclose their material accounting policy information rather than their significant accounting policies; clarifying that accounting policies related to immaterial transactions, other events or conditions are themselves immaterial and as such need not be disclosed; and clarifying that not all ac- counting policies that relate to material transactions, other events or conditions are themselves material to a company’s financial statements. The Board also amended IFRS Practice Statement 2 to in- clude guidance and two additional examples on the appli- cation of materiality to accounting policy disclosures. The amendments are consistent with the refined definition of material: “Accounting policy information is material if, when consid- ered together with other information included in an entity’s financial statements, it can reasonably be expected to influ- ence decisions that the primary users of general purpose financial statements make on the basis of those financial statements”. 1 January 2023 409