IBERSOL Annual Report 2018

Consolidated Financial Statements b) IIFRIC 23 - Uncertainty about tax treatment of income taxes An interpretation was issued on June 7, 2017 on how to deal with accounting un- certainties about the tax treatment of income taxes, especially when tax legislation requires that a payment be made to the Authorities in the context of a tax dispute and the entity intends to resort to the understanding in question which led to such payment. The interpretation has determined that the payment can be considered as a tax as- set, if it is related to income taxes, in accordance with IAS 12 applying the criterion of probability defined by the norm as to the favorable outcome in favor of the entity on the matter concerned. In this context, the entity may use the most probable amount method or, if the reso- lution can dictate ranges of values, use the expected value method. IFRIC 23 was adopted by Commission Regulation 2018/1595 of 23 October and is mandatory for annual periods beginning on or after 1 January 2019 and may be adopted in advance. The Group did not identify any significant changes resulting from the adoption of this interpretation. c) Prepayment characteristics with negative compensation (amendment to IFRS 9) Financial assets that have negative prepayment characteristics can now be measured at amortized cost or at fair value through comprehensive income (OIC) if they meet the relevant criteria of IFRS 9. The IASB also clarified that IFRS 9 requires preparers the recalculation of the amortized cost of the modification of financial liabilities by discount- ing the contractual cash flows using the original effective interest rate (EIR), and any allowance for the period is recognized (in line with the procedure already required for financial assets). This amendment was adopted by Commission Regulation 2018/498 and is mandatory for annual periods beginning on or after 1 January 2019, with early adoption allowed. The Group did not identify any significant changes resulting from the adoption of this interpretation. 2 . Norms, amendments and interpretations issued (but not yet effective for the Group), for which no significant impacts are estimated: The improvements in the 2015-2017 cycle issued by the IASB on 12 December 2017 introduce changes, effective for periods beginning on or after 1 January 2019, to IFRS 3 (remeasurement of the holding previously held as joint venture when it ob- tains control over the business), IFRS 11 (not remeasuring the holding previously held in the joint venture when it obtains joint control over the business), IAS 12 (account- ing for all tax consequences of dividend payments consistently), IAS 23 ( treatment as general loans any loan originally made to develop an asset when it becomes fit for use or sale); 232