53. Future accounting standards

The following provides a list of accounting standards, amendments and interpretations that will take effect for the Group after December 31, 2019:

“IFRS 17 - Insurance contracts”, issued in May 2017. The standard will take effect, subject to endorsement, for annual periods beginning on or after January 1, 2021, with earlier application permitted.

Amendments to References to the Conceptual Framework in IFRS Standards, issued in March 2018. The document sets out the amendments to affected standards in order to update references to the revised Conceptual Framework. These amendments accompany the latest version of the “Revised Conceptual Framework for Financial Reporting”, issued in March 2018, which includes some new concepts, provides updated definitions and recognition criteria and clarifies some important concepts. The revised Conceptual Framework and the above amendments will take effect for annual reporting periods beginning on or after January 1, 2020.

“Amendments to IFRS 3 - Definition of a Business”, issued in October 2018, is intended to assist companies in determining whether a set of activities and assets is a business. The amendments will take effect, subject to endorsement, for annual periods beginning on or after January 1, 2020.

“Amendments to IAS 1 and IAS 8 - Definition of Material”, issued in October 2018, to align the definition of “material” across accounting standards and clarify a number of aspects. The definition of material is as follows: “information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments will take effect for annual periods beginning on or after January 1, 2020.

“Amendments to IFRS 9, IAS 39 and IFRS 7 - Interest Rate Benchmark Reform”, issued in September 2019, which amend provisions concerning hedge accounting and certain additional disclosure requirements during the transition period (i.e. until the determination of an official alternative interest rate benchmark). The reform will impact fair value measurement, the effects of hedge accounting and net financial position when the alternative rates are established.

“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, but if the amendments are applied early, they must be applied prospectively.

“Amendments to IAS 1 - Classification of Liabilities as Current or Non-current”, issued in January 2020. The amendments regard the provisions of IAS 1 concerning the presentation of liabilities. More specifically, the changes clarify:

  • the criteria to adopt in classifying a liability as current or non-current, specifying that the right of an entity to defer settlement must exist at the end of the reporting period;
  • the classification is unaffected by the intentions or expectations of management about when the entity will exercise its right to defer settlement of a liability;
  • how the terms of a loan affect classification; and
  • that settlement regards the transfer to the counterparty of cash, equity instruments, other assets or services.

The amendments will take effect, subject to endorsement, for annual periods beginning on or after January 1, 2022, with earlier application permitted.

The Group is assessing the potential impact of the future application of the new provisions.