Page 225 - InterloopAnnualReport2020

NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

For the year ended June 30, 2020

requirements assuming that the interest rate benchmark on which the hedged cash flows and cash
flows from the hedging instrument are based will not be altered as a result of interest rate benchmark
reform;
ii. are mandatory for all hedging relationships that are directly affected by the interest rate benchmark
reform;
iii. are not intended to provide relief from any other consequences arising from interest rate benchmark
reform (if a hedging relationship no longer meets the requirements for hedge accounting for reasons other
than those specified by the amendments, discontinuation of hedge accounting is required);
iv. and require specific disclosures about the extent to which the entities’ hedging relationships are affected
by the amendments.

The group is yet to assess the full impact of the amendments.

– 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 group’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 group’s
financial statements.

– Amendments to IFRS 3, ‘Business Combinations’ – Reference to the Conceptual Framework
(effective for the group’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 amendment is not likely to have an impact on the group’s financial statements.

– Amendments to IAS 1, ‘Presentation of financial statements’ – Classification of Liabilities as
Current or Non–current (effective for the group’s annual period beginning on January 1, 2022):
The amendments 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.

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