IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated Financial Statements 36.2 Impact on the Consolidated Statement of Financial Position as at 01 January 2017: Restatement of non-monetary items as of January 1, 2017 (*) 10.766.593 Deferred tax liabilities 3.138.898 Impact on retained earnings 7.627.695 (*) essentially, intangible and tangible fixed assets. The general price index used was that of the IMF. 37. IFRS STANDARDS ALREADY ISSUED OR REVIEWED AND FOR FUTURE APPLICATION 1. The impact of the adoption of the amendments to standards that became effective as of 1 January 2017 is as follows: STANDARDS: a) IAS 7 (amendment), ‘Cashflow statement – Disclosure initiative’ (effective for annual periods beginning on or after 1 January 2017). This amendment introduces an additional disclosure about the changes in liabilities arising from financing activities, disaggregated between cash changes and non-cash changes and how it reconciles with the reported cash flows from financing activities, in the Cash Flow Statement. This change had an impact on the entity, having been disclosed the required information in Note 17. b)IAS 12 (amendment), ’Income taxes – Recognition of deferred tax assets for unrealised losses’ (effective for annual periods beginning on or after 1 January 2017). This amendment clarifies how to account for deferred tax assets related to assets measured at fair value, how to estimate future taxable profits when temporary deductible differences exist and how to assess recoverability of deferred tax assets when restrictions exist in the tax law. This amendment had no impact on the entity. 2. Standards (new and amendments) that have been published and are mandatory for the accounting periods beginning on or after 1 January 2018, endorsed by the EU: a)IFRS 9 (new), ‘Financial instruments’ (effective for annual periods beginning on or after 1 January 2018). IFRS 9 replaces the guidance in IAS 39, regarding: (i) the classification and measurement of financial assets and liabilities; (ii) the recognition of credit impairment (through the expected credit losses model); and (iii) the hedge accounting requirements and recognition. It is not expected that its application has significant impacts. 278