IBERSOL Annual Report and Consolidated Accounts 2017

ANNUAL REPORT 2017 b)IFRS 15 (new), ‘Revenue from contracts with customers’ (effective for annual periods beginning on or after 1 January 2018). This new standard, applies only to contracts with customers to provide goods or services, and requires an entity to recognise revenue when the contractual obligation to deliver the goods or services is satisfied and by the amount that reflects the consideration the entity is expected to be entitled to, following a five step approach. It is not expected that its application has significant impacts. c)IFRS 16 (new), ‘Leases’ (effective for annual periods beginning on or after 1 January 2019). This new standard replaces the IAS 17 with a significant impact on the accounting by les- sees 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 definition of a lease contract also changed, being based on the “right to control the use of an identified asset”. It is estimated that its application has rele- vant impacts, Ibersol will determine the respective amounts. d)IFRS 4 (amendment), ‘Insurance contracts (Applying IFRS 4 with IFRS 9)’ transactions’ (effective for annual periods beginning on or after 1 January 2018). This amendment allows companies that issue insurance contracts the option to recognise in Other Comprehen- sive 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. It is not expected that its application has significant impacts. e)Amendments to IFRS 15 , ‘Revenue from contracts with customers’ (effective for annual periods beginning on or after 1 January 2018). These amendments refer to additional guid- ance for determining the performance obligations in a contract, the timing of revenue rec- ognition from a license of intellectual property, the review of the indicators for principal versus agent classification, and to new practical expedients to simplify transition. It is not expected that its application has significant impacts. 3). Standards (new and amendments) and interpretations that have been published and are mandatory for the accounting periods beginning on or after 1 January 2017, but are not yet endorsed by the EU: 279