IBERSOL Annual Report and Consolidated Accounts 2017

Consolidated Financial Statements Standards a) Annual Improvements 2014 – 2016 , (generally effective for annual periods beginning on or after 1 January 2017). The 2014-2016 annual improvements impacts: IFRS 1, IFRS 12 and IAS 28. It is not expected that its application has significant impacts. b)IAS 40 (amendment) ‘Transfers of Investment property’ (effective for annual periods be- ginning on or after 1 January 2018). This amendment is still subject to endorsement by the European Union. This amendment clarifies when assets are transferred to, or from invest- ment properties, the evidence of the change in use is required. A change of management intention in isolation is not enough to support a transfer. It is not expected that its applica- tion has significant impacts. c)IFRS 2 (amendment), ‘Classification and measurement of share-based payment trans- actions’ (effective for annual periods beginning on or after 1 January 2018). This amend- ment is still subject to endorsement by the European Union. This amendment clarifies the measurement basis for cash-settled, share-based payments and the accounting for modifications to a share-based payment plan that change the classification an award from cash-settled to equity-settled. It also introduces an exception to the principles in IFRS 2 that will require an award to be treated as if it was wholly equity-settled, where an em- ployer is obliged to withhold an amount for the employee’s tax obligation associated with a share-based payment and pay that amount to the tax authority. It is not expected that its application has significant impacts. d)IFRS 9 (amendment), ‘Prepayment features with negative compensation’ (effective for annual periods beginning on or after 1 January 2019). This amendment is still subject to endorsement by the European Union. The amendment introduces the possibility to classify certain financial assets with negative compensation features at amortized cost, provided that specific conditions are fulfilled, instead of being classified at fair value through profit or loss. It is not expected that its application has significant impacts. e)IAS 28 (amendment), ‘Long-term interests in Associates and Joint Ventures’ (effective for annual periods beginning on or after 1 January 2019). This amendment is still subject to endorsement by the European Union. The amendment clarifies that long-term investments in associates and joint ventures (components of an entity’s investments in associates and joint ventures), that are not being measured through the equity method, are to be meas- ured in accordance with IFRS 9, being subject to impairment expected credit loss model, prior to any impairment test of the investment as a whole. It is not expected that its appli- cation has significant impacts. 280