IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 Assets and liabilities in the financial statements of foreign entities are translated into euros using the exchange rates at the balance sheet date and costs and income as well as cash flows are translated into euros using the average exchange rate for the period. The resulting exchange difference is recorded in the equity caption “Transla- tion reserve”. 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 be- ginning on or after 1 January 2024 Clarification requirements for classifying liabilities as current or non-current (amendments to IAS 1 – Presentation of Financial Statements) IASB issued on 23 January 2020 narrow-scope amendments to IAS 1 Presenta- tion of Financial Statements to clarify how to classify debt and other liabilities as current or non-current. The amendments clarify an IAS 1 criteria for classifying a liability as non-current: the requirement for an entity to have the right to defer the liability’s settlement at least 12 months after the reporting period. The amendments aim to: a. specify that an entity’s right to defer settlement must exist at the end of the reporting period and have substance; b. clarify that covenants with which the company must comply after the report- ing date (i.e., future covenants) do not affect a liability’s classification at the reporting date. However, when non-current liabilities are subject to future covenants, companies will now need to disclose information to help users understand the risk that those liabilities could become repayable within 12 months after the reporting date; and c. clarify the requirements to classify the liabilities that an entity will settle, or may settle, by issuing its own equity instruments (e.g. convertible debt). 1 January 2024 369