IBERSOL | Integrated Management Report - 2024

Individual Financial Statements Standards Change Date of application Lease liability in a sale-and- leaseback (amendments to IFRS 16 – Leases) The IASB issued amendments to IFRS 16 - Leases in September 2022 that in- troduce a new accounting model for variable payments in a sale and leaseback transaction. The amendments confirm the following: - On initial recognition, the seller-lessee includes variable lease payments when it measures a lease liability arising from a sale-and-leaseback transaction. - After initial recognition, the seller-lessee applies the general requirements for subsequent accounting of the lease liability such that it recognises no gain or loss relating to the right of use it retains. A seller-lessee may adopt different approaches that satisfy the new require- ments on subsequent measurement. Under IAS 8 - Accounting Policies, Changes in Accounting Estimates and Er- rors, a seller-lessee will need to apply the amendments retrospectively to sale- and-leaseback transactions entered into or after the date of initial application of IFRS 16. This means that it will need to identify and re-examine sale-and- leaseback transactions entered into since implementation of IFRS 16 in 2019, and potentially restate those that included variable lease payments. 1 January 2024 Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures – Supplier Finance Arrangements On 25 May 2023, the International Accounting Standards Board (IASB) pub- lished Supplier Finance Arrangements with amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments Disclosures. The amendments relate to disclosure requirements in connection with supplier financing arrangements - also known as supply chain financing, financing of trade payables or reverse factoring arrangements. The new requirements supplement those already included in IFRS standards and include disclosures about: - Terms and conditions of supplier financing arrangements; - The amounts of the liabilities that are the subject of such agreements, for which part of them the suppliers have already received payments from the fi- nanciers, and under which item these liabilities are shown in the balance sheet; - The ranges of due dates; and - Information on liquidity risk. 1 January 2024 Standards and amendments endorsed by the European Union that the group opted out of early application Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability On 15 August 2023, the International Accounting Standards Board (the IASB or Board) issued Lack of Exchangeability (Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates) (the amendments). The amendments clarify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. A currency is exchangeable into another currency when a company is able to exchange that currency for the other currency at the measurement date and for a specified purpose. When a currency is not exchangeable, a company needs to estimate a spot rate. Under the amendments, companies will need to provide new disclosures to help users assess the impact of using an estimated exchange rate on the financial statements. These disclosures might include: - the nature and financial impacts of the currency not being exchangeable; - the spot exchange rate used; - the estimation process; and - risks to the company because the currency is not exchangeable. The amendments apply for annual reporting periods beginning on or after 1 January 2025. Earlier application is permitted. 1 January 2025 478