Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Explanatory Notes 30 SEPTEMBER 2020 43. CHANGES IN ACCOUNTING POLICIES (CONT’D) The following table presents the impact of adopting IFRS 16 on the statement of financial position as at 1 October 2019: 30 September 2019 As originally Presented IFRS 16 1 October 2019 Assets Adjustments MUR m MUR m MUR m Right-of-use assets (a) - 221.8 221.8 Deferred tax assets (b) 188.8 (3.1) 185.7 Liabilities Lease liabilities - 233.5 233.5 Equity Retained earnings (d) 2,983.7 (11.9) 2,971.8 (a) The adjustment to right-of-use assets is as follows: MUR m Operating type leases 221.8 Right-of-use assets 221.8 (b) Deferred tax assets were adjusted to reflect the tax effect of the other adjustments recorded. (c) Lease liabilities Lease liabilities were recognised in relation to leases which had previously been classified as ‘operating leases’ under the principle of IAS17 - Leases. These liabilities were the principle of IAS17 - Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 October 2019. (d) The following table reconciles the minimum lease commitments disclosed in the Group’s 30 September 2019 annual financial statements to the amount of lease liabilities recognised on 1 October 2019: 1 October 2019 MUR m Minimum operating lease commmitment at 30 September 2019 237.0 Less: short-term leases not recognised under IFRS 16 (3.5) Lease liability as at 1 October 2019 233.5 Of which are: Current lease liabilities 24.2 Non-current lease liabilities 209.3 233.5 (e) Retained earnings were adjusted to record the net effect of all other adjustments noted. 154