Integrated Report 2020

INTEGRATED REPORT 2020 CIM FINANCIAL SERVICES LTD Explanatory Notes 30 SEPTEMBER 2020 2. ACCOUNTING POLICIES (CONT’D) 2.5 Changes in accounting policies and disclosures (Cont’d) (a) New and amended standards and interpretation (Cont’d) • Recognise any reduction in a surplus immediately in profit or loss, either as part of past service cost or as a gain or loss on settlement. In other words, a reduction in a surplus must be recognised in profit or loss even if that surplus was not previously recognised because of the impact of the asset ceiling. • Separately recognise any changes in the asset ceiling through other comprehensive income. The amendments have no impact on the Group’s financial statements. (b) Standards, Amendments to published Standards and Interpretations issued but not yet effective Certain standards, amendments to published standards and interpretations have been issued that are mandatory for accounting periods beginning on or after 1 January 2020 or later periods, but which the Group has not early adopted. At the reporting date of these financial statements, the following were in issue but not yet effective: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28 ) IFRS 17 Insurance Contracts Definition of a Business (Amendments to IFRS 3 ) Definition of Material (Amendments to IAS 1 and IAS 8 ) Interest Rate Benchmark Reform (Amendments to IFRS 9 , IAS 39 and IFRS 7 ) Classification of Liabilities as Current or Non-current (Amendments to IAS 1 ) Annual Improvements 2018–2020 Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16 ) Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37 ) Reference to the Conceptual Framework (Amendments to IFRS 3 ) COVID-19-Related Rent Concessions (Amendment to IFRS 16 ) Amendments to IFRS 17 Extension of the Temporary Exemption from Applying IFRS 9 (Amendments to IFRS 4 ) Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9 , IAS 39 , IFRS 7 , IFRS 4 and IFRS 16 ) Where relevant, the Group is still evaluating the effect of these Standards, Amendments to published Standards and Interpretations issued but not yet effective, on the presentation of its financial statements. 2.6 Basis of consolidation The consolidated financial statements comprise the financial statements of CIM Financial Services Ltd and its subsidiaries as at 30 September 2020. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: • Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee) • Exposure, or rights, to variable returns from its involvement with the investee, and • The ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: • The contractual arrangement with the other vote holders of the investee • Rights arising from other contractual arrangements • The Group’s voting rights and potential voting rights. 76