IBERSOL Annual Report 2018

Consolidated Financial Statements iii) Restatement of equity items: At the beginning of the first period of application of IAS 29, equity items, except retained earnings and any revaluation surplus, are restated by the application of a general index since the dates on which the components were constituted or arose. Any revaluation surplus arising from prior periods is eliminated. Retained retained earnings are determined from all other amounts in the restated statement of financial position. At the end of the first period and in subsequent periods, all components of equity are restated by the application of a general price index from the beginning of the period or the date of its establishment if later. c) Statement of income and other comprehensive income i) Statement of other comprehensive income: restatement of Other comprehen- sive income items by applying the change in the general price index from the dates on which the items of income and expenses were initially recorded in the financial statements. ii) Income statement: restatement of the items of income for the year, by apply- ing the change in the general price index from the dates on which the items of income and expenses were initially recorded in the financial statements. (iii) Other items of income or expenditure, such as income and interest expense and exchange rate differences relating to funds invested or borrowed, are also restated, although they partially “offset” the effect of inflation. iv) The determination of the inflation index to be applied taking into account the registration date of each transaction may require a very significant level of information disaggregation, allowing the use of monthly averages as an ap- proximation of the inflation rate to be applied for each transaction. d) Reconciliation of gains / losses on restatement by hyperinflation Deferred taxes are recognized on the adjustments resulting from the restatement of non-monetary items. 2.23 IFRS STANDARDS ALREADY ISSUED OR REVISED AND FOR FUTURE APPLICATION 1. The Group decided not to apply the following standards and / or interpretations adopted by the European Union in advance: a) IFRS 16 - Leases The IASB issued, on January 13, 2016, IFRS 16 - leases, which are mandatory for periods beginning on or after 1 January 2019. The standard has been endorsed in the European Union by Regulation of the European Commission no. 1986/2017, of 31 October. Its early adoption is permitted provided that it also adopts IFRS 15. This standard repeals IAS 17 - Leases. 230