IBERSOL | 2016 Annual Report - page 277

ANNUAL REPORT 2016
issue insurance contracts the option to recognise in Other Comprehensive Income, rather than
Profit or Loss the volatility that could rise when IFRS 9 is applied before the new insurance
contract standard is issued. Additionally, it is given an optional temporary exemption from
applying IFRS 9 until 2021, to the companies whose activities are predominantly connected
with insurance, not being applicable at consolidated level. Its application is not expected to
have significant impacts.
f)
Amendments to IFRS 15, f) ‘Revenue from contracts with customers’ (effective for annual
periods beginning on or after 1 January 2018). These amendments are still subject to
endorsement by European Union. These amendments refer to additional guidance for
determining the performance obligations in a contract, the timing of revenue recognition
from a license of intellectual property, the review of the indicators for principal versus
agent classification, and to new practical expedients to simplify transition. Its application
is not expected to have significant impacts.
g)
IFRS 16 (new), ‘Leases’ (effective for annual periods beginning on or after 1 January 2019).
This standard is still subject to endorsement by European Union. This new standard repla-
ces the IAS 17 with a significant impact on the accounting by lessees that are now required
to recognise a lease liability reflecting future lease payments and a “right-of-use asset” for
all lease contracts, except for certain short-term leases and for low-value assets. The defi-
nition of a lease contract also changed, being based on the “right to control the use of an
identified asset”. The impact of this standard is being assessed by Ibersol’s management.
Annual Improvement 2014 – 2016 (generally effective for annual periods beginning on or af-
ter 1 January 2017). These improvements are still subject to endorsement by European Union.
The 2014-2016 annual improvements impacts: IFRS 1, IFRS 12 and IAS 28. Its application is
not expected to have significant impacts.
37. SUBSEQUENT EVENTS
There are no subsequent events to December 31st 2016 that may have a material impact on
the financial statements presented.
38. APPROVAL OF THE FINANCIAL STATEMENTS
The financial statements were approved by the Board of Directors and authorised for emission
on 28th April 2017.
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