Page 112 - Annual Report 2020
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New and revised IFRSs Effective for annual periods
beginning on or after
Amendments to IFRS 7, IFRS 9 and IAS 39 Interest 1 January 2020
Rate Benchmark Reform
The amendments to IFRS 9 and IAS 39 Financial The amendments clarify that while businesses version of the Framework they are referencing to (the
Instruments: Recognition and Measurement provide usually have outputs, outputs are not required for an IASC Framework adopted by the IASB in 2001, the IASB
a number of reliefs, which apply to all hedging integrated set of activities and assets to qualify as a Framework of 2010, or the new revised Framework of
relationships that are directly affected by interest business. To be considered a business, an acquired set 2018) or to indicate that definitions in the Standard
rate benchmark reform. A hedging relationship is of activities and assets must include, at a minimum, have not been updated with the new definitions
affected if the reform gives rise to uncertainty about an input and a substantive process that together developed in the revised Conceptual Framework.
the timing and/or amount of benchmark-based cash significantly contribute to the ability to create outputs.
flows of the hedged item or the hedging instrument. The Standards which are amended are IFRS 2, IFRS 3,
These amendments have no impact on the financial The amendments remove the assessment of whether IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38,
statements of the QFC Regulatory Authority as it does market participants are capable of replacing any IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32.
not have any interest rate hedge relationships. missing inputs or processes and continuing to
produce outputs. The amendments also introduce IFRS 7 Financial Instruments: Disclosures and IFRS 9
Definition of Material - Amendments to additional guidance that helps to determine whether — Financial Instruments
IAS 1 Presentation of Financial Statements a substantive process has been acquired.
and IAS 8 Accounting Policies, Changes
in Accounting Estimates and Errors The amendments introduce an optional concentration
test that permits a simplified assessment of whether
The amendments make the definition of material an acquired set of activities and assets is not a
in IAS 1 easier to understand and are not intended business. Under the optional concentration test,
to alter the underlying concept of materiality the acquired set of activities and assets is not a
in IFRS Standards. The concept of ‹obscuring› business if substantially all of the fair value of the
material information with immaterial information gross assets acquired is concentrated in a single
has been included as part of the new definition. identifiable asset or group of similar assets. The
amendments are applied prospectively to all business
The threshold for materiality influencing users has combinations and asset acquisitions for which the
been changed from “could” influence “to” could acquisition date is on or after 1 January 2020.
reasonably be expected to influence›. The definition
of material in IAS 8 has been replaced by a reference Amendments to References to the Conceptual
to the definition of material in IAS 1. In addition, the Framework in IFRS Standards
IASB amended other Standards and the Conceptual
The amendments include consequential amendments
Framework that contains a definition of ‹material› or
to affected Standards so that they refer to the new
refer to the term ‘material’ to ensure consistency.
Framework. Not all amendments, however, update
those pronouncements with regard to references
Definition of a Business – Amendments
to and quotes from the Framework so that they
to IFRS 3 Business Combinations
refer to the revised Conceptual Framework. Some
pronouncements are only updated to indicate which
T ABLE OF C ONTENT S
