IBERSOL | Integrated Management Report - 2024

INTEGRATED MANAGEMENT REPORT 2024 Standards Change Date of application Annual improvements On 18 July 2024, the International Accounting Standards Board (IASB) issued narrow amendments to IFRS Accounting Standards and accompanying guid- ance as part of its regular maintenance of the Standards. The amendments include clarifications, simplifications, corrections and changes aimed at improving the consistency of several IFRS Accounting Standards. The IASB amended: - IFRS 1 First-time Adoption of International Financial Reporting Standards, to clarify some aspects related to hedge accounting by a first-time adopter. - IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7 to clarify: · The application guidance on Gain or loss on derecognition, and · Some Implementation Guidance paragraphs, namely Introduction, Fair value (disclosure of deferred difference between fair value and transaction price) and Credit risk disclosures. - IFRS 9 Financial Instruments to: · To require companies to initially measure a trade receivable without a sig- nificant financing component at the amount determined by applying IFRS 15, and · To clarify that when a lease liability is derecognised, the derecognition is accounted for under IFRS 9. However, when a lease liability is modified, the modification is accounted for under IFRS 16 Leases. The amendment states that when lease liabilities are derecognised under IFRS 9, the difference be- tween the carrying amount and the consideration paid is recognised in profit or loss. - IFRS 10 Consolidated Financial Statements, clarifying the Determination of a ‘de facto agent’; and - IAS 7 Statement of Cash Flows, minor change on the paraph related to Invest- ments in subsidiaries, associates, and joint ventures. The amendments are effective for annual periods beginning on or after 1 Janu- ary 2026, with earlier application permitted. 1 January 2026 Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature- dependent Electricity On 18 December 2024 the International Accounting Standards Board (IASB) issued amendments to help companies better report the financial effects of nature-dependent electricity contracts, which are often structured as power purchase agreements (PPAs). Nature-dependent electricity contracts help companies to secure their electric- ity supply from sources such as wind and solar power. The amount of electricity generated under these contracts can vary based on uncontrollable factors such as weather conditions. Current accounting requirements may not adequately capture how these contracts affect a company’s performance. To allow companies to better reflect these contracts in the financial statements, the IASB has made targeted amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The amendments include: - Clarifying the application of the ‘own-use’ requirements; - Permitting hedge accounting if these contracts are used as hedging instru- ments; and - Adding new disclosure requirements to enable investors to understand the ef- fect of these contracts on a company’s financial performance and cash flows. The amendments are effective for annual periods beginning on or after 1 Janu- ary 2026, with earlier application permitted. 1 January 2026 481