IBERSOL • 2023 Integrated Management Report

INTEGRATED MANAGEMENT REPORT 2023 Standards Change Date of application IFRS 17 – Insurance Contracts The IASB issued on 18 May 2017 a standard that superseded IFRS 4 and completely reformed the treatment of insurance contracts.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 various impacts also at the level of the financial position. 1 January 2023 Amendments to IFRS 17 - Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information The International Accounting Standards Board (IASB) has issued a narrow-scope amendment to the transition require- ments in IFRS 17 - Insurance Contracts, providing insurers with an option aimed at improving the usefulness of infor- mation to investors on initial application of the new Stand- ard. The amendment does not affect any other requirements in IFRS 17. IFRS 17 and IFRS 9 Financial Instruments have different tran- sition requirements. For some insurers, these differences can cause temporary accounting mismatches between financial assets and insurance contract liabilities in the comparative information they present in their financial statements when applying IFRS 17 and IFRS 9 for the first time. The amendment helps insurers to avoid these temporary ac- counting mismatches and, therefore, improve the usefulness of comparative information for investors. 1 January 2023 Amendments to IAS 12 – International Tax Reform – Pillar Two Model Rules On 23 May 2023, the IASB issued International Tax Reform— Pillar Two Model Rules – Amendments to IAS 12 to clarify the application of IAS 12 Income Taxes to income taxes arising from tax law enacted or substantively enacted to implement the OECD Pillar Two model rules. The amendments introduce: - A mandatory temporary exception to the accounting for deferred taxes arising from the jurisdictional implementa- tion of the Pillar Two model rules; and - Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that leg- islation, particularly before its effective date. - The mandatory temporary exception – the use of which is required to be disclosed – applies immediately. The re- maining disclosure requirements apply for annual report- ing periods beginning on or after 1 January 2023 1 January 2023 411