Page 103 - InterloopAnnualReport2021

NOTES TO THE

FINANCIAL STATEMENTS

For the year ended June 30, 2021

3.2 Basis of measurement
These financial statements have been prepared under the historical cost convention except as otherwise
stated in respective policy notes.

3.3 Functional and presentation currency
These financial statements are presented in Pakistani Rupee which is also the Company’s functional
currency.
4. NEW AND REVISED STANDARDS, INTERPRETATIONS AND PRONOUNCEMENTS
4.1 Standards, interpretations and amendments to approved accounting standards which became
effective during the year
– Amendments to IFRS 9, ‘Financial Instruments’; IAS 39, ‘Financial Instruments: Recognition and
Measurement, and IFRS 7, ‘ Financial Instruments: Disclosures’ - Interest Rate Benchmark Reform
(effective for the Company’s annual period beginning on or after January 01, 2020):

The changes in Interest Rate Benchmark Reform

i. modify specific hedge accounting requirements so that entities would apply those hedge
accounting 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 amendments do not have any significant impact on these financial statements.

– Amendment to IFRS 16, ‘Leases’ - Covid-19-Related Rent Concessions (effective for annual
period beginning on or after June 01, 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 does not have any impact
on these financial statements.

– Amendments 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 or after January 01, 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.

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