Annual Report 2019

Explanatory Notes 30 SEPTEMBER 2019 2. ACCOUNTING POLICIES (CONT’D) 2.4 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES (CONT’D) New and amended standards and interpretation (Cont’d) IFRS 7 - Financial Instruments (Revised) To reflect the differences between IFRS 9 and IAS 39, IFRS 7 Financial Instruments: Disclosures were updated, and the Group has adopted it, together with IFRS 9, for the year beginning 1 October 2018. Changes include transition disclosures which are shown in Note 2.4; detailed qualitative and quantitative information about the ECL calculations such as the assumptions and inputs used are set out in Note 4.1(d). Reconciliations from opening to closing ECL allowances are presented in Notes 15 and 16. IFRS 7 also requires additional and more detailed disclosures for hedge accounting even for entities opting to continue to apply the hedge accounting requirements of IAS 39. The Group does not apply hedge accounting. IFRIC 22 Foreign currency transactions and advance consideration The Interpretation clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the Group must determine the date of the transactions for each payment or receipt of advance consideration. This Interpretation does not have any impact on the Group’s financial statements. 2.5 New or revised standards and interpretations At the date of authorisation of these financial statements, the following relevant new and revised Standards were in issue but effective on annual periods beginning on or after the respective dates as indicated: IAS 1 Presentation of Financial Statements – Amendments regarding the definition of material (effective 1 January 2020) IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – Amendments regarding the definition of material (effective 1 January 2020) IAS 12 Income Taxes - Amendments resulting from Annual Improvements 2015-2017 Cycle (income tax consequences of payments on financial instruments classified as equity) (effective 1 January 2019) IAS 19 Employee Benefits - Amendments regarding plan amendments, curtailments or settlements (effective 1 January 2019) IAS 23 Borrowing Costs - Amendments resulting from Annual Improvements 2015-2017 Cycle (borrowings costs eligible for capitalisation) (effective 1 January 2019) IAS 28 Investments in Associates and Joint Ventures - Amendments regarding the sale or contribution between an investor and its associates or joint ventures (deferred indefinitely) IAS 28 Investments in Associates and Joint Ventures - Amendments regarding long-term interests in associates and joint ventures (effective 1 January 2019) IAS 39 Financial Instruments: Recognition and Measurement - Amendments to permit an entity to elect to continue to apply the hedge accounting requirements in IAS 39 for a fair value hedge of the interest rate exposure of a portion of a portfolio of financial assets or financial liabilities when IFRS 9 is applied and to extend the fair value option to certain contracts that meet the ‘own case’ scope exception (applies when IFRS 9 is applied) IFRS 3 Business Combinations - Amendments resulting from Annual Improvements 2015–2017 Cycle (remeasurement of previously held interest) (effective 1 January 2019) Definition of a business - Amendments to IFRS 3 IFRS 9 Financial Instruments - Amendments regarding prepayment features with negative compensation and modifications of financial liabilities (effective 1 January 2019) IFRS 10 Consolidated Financial Statements - Amendments regarding the sale or contribution of assets between an investor and its associate or joint venture (deferred indefinitely) IFRS 11 Joint Arrangements - Amendments resulting from Annual Improvements 2015–2017 Cycle (remeasurement of previously held interest) (effective 1 January 2019) IFRS 16 Leases - Original issue (effective 1 January 2019) IFRS 17 Insurance Contracts - Original issue (effective 1 January 2021) IFRIC 23 Uncertainty over Income Tax Treatments (effective 1 January 2019) CIM FINANCIAL SERVICES LTD / ANNUAL REPORT 2019 76

RkJQdWJsaXNoZXIy MzQ3MjQ5