Page 155 - InterloopAnnualReport2020

NOTES TO THE UNCONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

– Amendment to IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’ – Onerous
Contracts – Cost of Fulfilling a Contract (effective for annual period beginning on or after January
01, 2022):
The amendment specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the
contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract
(examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling
contracts (an example would be the allocation of the depreciation charge for an item of property, plant and
equipment used in fulfilling the contract). The amendment is not likely to have an impact on the Company’s
financial statements.

– Amendment to IFRS 16, ‘Leases’ – Covid–19–Related Rent Concessions (effective for annual
period beginning on or after 1 June 2020):
The changes in Covid–19–Related Rent Concessions (Amendment to IFRS 16) amend IFRS 16 to provide
lessees with an exemption from assessing whether a COVID–19–related rent concession is a lease
modification; require lessees that apply the exemption to account for COVID–19–related rent concessions
as if they were not lease modifications; require lessees that apply the exemption to disclose that fact; and
require lessees to apply the exemption retrospectively in accordance with IAS 8, but not require them to
restate prior period figures. The amendment is not expected to have significant impact on the Company’s
financial statements.

– Amendments to IFRS 3, ‘Business Combinations’ – Reference to the Conceptual Framework
(effective for the Company’s annual period beginning on January 1, 2022):
The amendments are intended to replace a reference to the Framework for the Preparation and Presentation
of Financial Statements, issued in 1989 with a reference to the Conceptual Framework for Financial Reporting,
that was issued in March 2018, without significantly changing its requirements. In addition, the Board added
an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses
arising for liabilities and contingent liabilities and it clarified existing guidance in IFRS 3 for contingent assets.
The amendments are not likely to have an impact on the Company’s financial statements.

– Amendment to IAS 1, ‘Presentation of financial statements’ – Classification of Liabilities as Current
or Non–current (effective for the Company’s annual period beginning on January 1, 2022):
The amendment specify that the conditions which exist at the end of the reporting period are those which will
be used to determine if a right to defer settlement of a liability exists. Management expectations about events
after the reporting date, for example on whether a covenant will be breached, or whether early settlement
will take place, are not relevant. The amendments clarify the situations that are considered settlement of a
liability.

– Amendment to IAS 1, ‘Presentation of financial statements’, and IAS 8, ‘Accounting policies,
changes in accounting estimates and errors’ (effective for the Company’s annual period beginning
on January 1, 2020):
These amendments and consequential amendments to other IFRSs:

(i) use a consistent definition of materiality throughout IFRSs and the Conceptual Framework for Financial
Reporting;
(ii) clarify the explanation of the definition of material; and
(iii) incorporate some of the guidance in IAS 1 about immaterial information.
These amendments are not expected to have a significant impact on the Company’s future financial
statements.

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