38
- “IFRS 9 Financial Instruments”; with reference to the fees included in the ’10 per cent’ test for
the derecognition of financial liabilities, the amendment clarifies the fees that an entity includes
when assessing whether the terms of a new or modified financial liability are substantially
different from the terms of the original financial liability. In particular, these fees include only
those paid or received between the borrower and the lender, including fees paid or received by
either the borrower or lender on the other’s behalf.
“IFRS 16 Leases”; the International Accounting Standards Board amended Illustrative
Example 13 accompanying IFRS 16 Leases. In particular, the amendment removes potential for
confusion in applying IFRS 16 because of the way Illustrative Example 13 had illustrated the
requirements for lease incentives. In fact, the example included a reimbursement for leasehold
improvements without an explanation on whether the reimbursement would meet the definition of a
lease incentive. The amendment removes from the example the illustration of the reimbursement
relating to leasehold improvements.
The amendments shall be applied prospectively for annual reporting periods beginning on or after
January 1, 2022, with early application permitted.
“Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies”,
issued in February 2021. The amendments are intended to help entities in deciding which accounting
policies to disclose in their financial statements. The amendments to IAS 1 require entities to disclose
their material accounting policies rather than their significant accounting policies. Guidance on how to
apply the concept of materiality to the accounting policy disclosures is provided by the amendments
to IFRS Practice Statement 2. The amendments, subject to endorsement, are effective for annual
periods beginning on or after January 1, 2023, with early application permitted.
"Amendments to IAS 8 - Definition of Accounting Estimates", issued in February 2021. The
amendments help entities to distinguish between changes in accounting policies from changes in
accounting estimates; the definition of changes in accounting estimates is replaced with a definition
of accounting estimates as “monetary amounts in financial statements that are subject to
measurement uncertainty”. The amendments, subject to endorsement, are effective for annual
periods beginning on or after January 1, 2023, with early application permitted.
“Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising
from a Single Transaction”, issued in May 2021. The amendments require companies to recognize
deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and
deductible temporary differences. The amendments, subject to endorsement, are effective for annual
periods beginning on or after January 1, 2023, with earlier application permitted.
“Amendments to IFRS 10 and IAS 28 - Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture”, issued in September 2014. The amendments clarify the accounting
treatment for sales or contribution of assets between an investor and its associates or joint ventures.
They confirm that the accounting treatment depends on whether the assets sold or contributed to an
associate or joint venture constitute a ‘business’ (as defined in IFRS 3). The IASB has deferred the
effective date of these amendments indefinitely.
“IFRS 17 – Insurance Contracts”, issued in May 2017. The standard will take effect for annual
period beginning on or after January 1, 2023, with earlier application permitted.
The Company is assessing the potential impact of the future application of the new provisions.