AGRIBEL HOLDINGS LTD FINANCIAL REVIEW 2021
IAS 1 ( Amendments ) Classification of Liabilities as current or non-current Previously , IAS 1 required that an entity must have an unconditional right to defer payment , but also required expectation of refinancing / roll-over of obligations to be taken into account in classifying a liability as current or noncurrent . These requirements were potentially contradictory . The standard is amended to now require that a liability must be classified based on an entity ' s right to defer payment that exists at the reporting date , irrespective of whether the entity expects to exercise that right or not . If the right to defer payment is conditional , the entity must meet the conditions at the reporting date ( even if a lender will not test compliance on this date ) to take such a right into account . Effective from 1 January 2023 ; IFRS 9 ( Amendments ) Financial instruments ( Annual improvements 2018 - 2020 ) Clarification that for purposes of determining whether a financial liability has been modified , the fees to be considered are those between the borrower and lender . The amendment provides clarity on the accounting treatment of fees if the modification is not accounted for as an extinguishment . Effective from 1 January 2022 ; IAS 37 ( Amendments ) Onerous Contracts - Cost of Fulfilling a Contract Amendment clarifies that the cost of fulfilling a contract , as contemplated in the definition of an onerous contract , refers to costs directly attributable to the contract . This includes incremental costs of fulfilling the contract and also an allocation of other costs that relate directly to fulfilling the contract . The amendment also clarifies that impairment testing should be performed on assets used in fulfilling the contract . Effective from 1 January 2022 ; IFRS 3 ( Amendments ) Reference to the Conceptual Framework Reference to the Framework updated in the recognition criteria in IFRS 3 with two consequent amendments . Firstly , the amendments indicate that contingent assets acquired in a business combination are not recognised . Secondly , the amendments indicate that an entity should apply the requirement of IAS 37 ( and IFRIC 21 ), as opposed to the Framework , to determine whether liabilities within the scope of that standard are recognised in a business combination . Effective from 1 January 2022 ; IAS 1 and IFRS Practice Statement 2 ( Amendments ) Disclosure of Accounting Policies Requirement to disclose significant accounting policies to disclosure of material accounting policy information . The amendments provide detailed guidance as to when accounting policy information would be material . The amendments also make it clear that accounting policy information must be entity-specific . Effective from 1 January 2023 with early adoption available ; IAS 8 ( Amendments ) Definition of accounting estimates Requirement to disclose significant accounting policies and to disclosure material accounting policy information . The amendments provide detailed guidance as to when accounting policy information would be material . The amendments also make it clear that accounting policy information must be entity-specific . Effective from 1 January 2023 with early adoption available ; IFRS 16 ( Amendments ) Covid-19- Related Rent Concessions This amendment provides a practical expedient that a lessee can use to elect not to assess whether a rent concession that occurs as a direct consequence of the Covid-19 pandemic represents a lease modification . Effective from 1 June 2020 with early adoption available . IFRS 17 Insurance Contracts Revised standard that prescribes the recognition , measurement , presentation and disclosure of insurance contracts to replace IFRS 4 , which was always intended to be an interim standard . IFRS 4 allowed national practice to be followed to account for insurance contracts , while IFRS 17 prescribes a common global standard . Amendments to IFRS 17 Scope of IFRS 17 narrowed to exclude certain credit card contracts . Additional clarification on separation / aggregation of components of insurance contracts , accounting for contractual service margins , accounting for re-insurance contracts , onerous insurance contracts and presentation / disclosure in respect of insurance contracts . Introduction of accounting for insurance acquisition cash flows . Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts ( Amendments to IFRS 4 ) & Extension of the Temporary Exemption from Applying IFRS 9 Temporary exemption to certain insurers not to apply IFRS 9 but rather IAS 39 Amendment of IAS 12 : Deferred Tax related to Assets and Liabilities arising from a Single Transaction The initial recognition exemption is expanded to only apply when the transaction that gives rise to temporary differences at initial recognition does not give rise to equal taxable and deductible temporary differences .
66 AGRIBEL ANNUAL FINANCIAL REVIEW 2021 Agribel Holdings Limited Reg nr : 1996 / 017629 / 06