3. New and amended standards and interpretations


The Group has applied the following standards, interpretations and amendments that took effect as from January 1, 2019.

  • “IFRS 16 - Leases”, issued on January 2016, which replaces “IAS 17 - Leases”, “IFRIC 4 - Determining Whether an Arrangement Contains a Lease”, “SIC 15 - Operating Leases-Incentives” and “SIC 27 - Evaluating the Substance of Transactions Involving the Legal Form of a Lease”.
    The standard sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under IAS 17.
    The nature and effect of the changes as a result of the adoption of this new accounting standard are described in note 4 “Changes in accounting policies and disclosures”. 
  • “Amendments to IAS 19 - Plan Amendment, Curtailment or Settlement”, issued in February 2018.
    When an amendment, curtailment or settlement of a defined benefit plan occurs during the annual reporting period, the amendments specify that, for the remainder of the annual reporting period, an entity shall determine: 
    • current service cost using the actuarial assumptions used to remeasure the net defined benefit liability/(asset); and 
    • net interest using the net defined benefit liability/(asset) remeasured and the discount rate used to remeasure the net defined benefit liability/(asset). 
  • The amendments also clarify that the past service cost (or the gain/loss on settlement) is calculated ignoring the effect of the asset ceiling that is determined in a second step and is recognized in the normal manner in other comprehensive income. The amendments do not address the accounting for “significant market fluctuations” in the absence of a plan amendment, curtailment or settlement. The application of these amendments did not have a significant impact in the consolidated financial statements. 
  • “Amendments to IAS 28 - Long-term Interests in Associates and Joint Ventures”, issued in October 2017; the amendments clarify that an entity applies “IFRS 9 - Financial Instruments” to non-current interests in associates and joint ventures to which the equity method is not applied. The application of these amendments did not have a significant impact in the consolidated financial statements. 
  • “IFRIC 23 - Uncertainty over Income Tax Treatments”, issued in June 2017; the interpretation clarifies how to apply the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments. The application of this interpretation did not have a significant impact in the consolidated financial statements. 
  • “Annual improvements to IFRSs 2015-2017 cycle”, issued in December 2017; the document contains formal modifications and clarifications of existing standards. More specifically, the following standards were amended: 
    • “IFRS 3 - Business Combinations”; the amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies the requirements for a business combination achieved in stages, including remeasuring its entire previously held interests in the assets of the joint operation at the acquisition-date fair value. These amendments apply to business combinations for which the acquisition date is on or after January 1, 2019; 
    • “IFRS 11 - Joint Arrangements”; the amendments clarify that when an entity obtains joint control of a joint operation that constitutes a business (as defined in IFRS 3), it should not remeasure its previously held interests in that joint operation. These amendments apply to transactions in which it obtains joint control on or after January 1, 2019; 
    • “IAS 12 - Income Taxes”; the amendments clarify that the income tax consequences when the entity recognizes a liability to pay a dividend are linked more directly to past transactions or events that generated distributable profits than distributions to owners. Therefore, the related income tax consequences of dividends shall be recognized in income statement, other comprehensive income or equity according to where the entity originally recognized those past transactions or events; 
    • “IAS 23 - Borrowing Costs”; the amendments clarify that an entity treats as part of general borrowings any specific borrowing, originally made to develop a qualifying asset, that remain outstanding when substantially all the activities necessary to prepare that asset for its intended use or sale are complete. 

These amendments apply to borrowing costs incurred on or after January 1, 2019. The application of these amendments did not have a significant impact in the consolidated financial statements.