CIM FINANCE. INTEGRATED REPORT 2022 | 109 EXPLANATORY NOTES 30 SEPTEMBER 2022 2. A CCOUNTING POLICIES (CONT’D) 2.6 Changes in accounting policies and disclosures (Cont’d) IAS 1 Presentation of Financial Statements Classification of Liabilities as Current or Noncurrent: Narrow-scope amendments to IAS 1 to clarify how to classify debt and other liabilities as current or non-current. Disclosure of Accounting Policies: The amendments require companies to disclose theirmaterial accounting policy information rather than their significant accounting policies, with additional guidance added to the Standard to explain how an entity can identifymaterial accounting policy informationwith examples of when accounting policy information is likely to bematerial. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors Definition of Accounting Estimates: The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates, by replacing the definition of a change in accounting estimates with a new definition of accounting estimates. Under the newdefinition, accounting estimates are “monetary amounts in financial statements that are subject tomeasurement uncertainty”. The requirements for recognising the effect of change in accounting prospectively remain unchanged. IAS 12 Income Taxes Deferred Tax related to Assets and Liabilities arising froma Single Transaction: The amendment clarifies howa company accounts for income tax, including deferred tax, which represents tax payable or recoverable in the future. In specified circumstances, companies are exempt fromrecognising deferred taxwhen they recognise assets or liabilities for the first time. The aimof the amendments is to reduce diversity in the reporting of deferred tax on leases and decommissioning obligations, by clarifying when the exemption from recognising deferred tax would apply to the initial recognition of such items. Amendment for which effective date has been deferred indefinitely until further notice IFRS 10 Consolidated Financial Statements Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28): Narrow scope amendment address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. IAS 28 Investments in Associates and Joint Ventures Annual Improvements to IFRS Standards 2018-2020: The amendment removes the requirement for entities to exclude taxation Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to IFRS 10 and IAS 28): Narrow scope amendment to address an acknowledged inconsistency between the requirements in IFRS 10 and those in IAS 28 (2011), in dealing with the sale or contribution of assets between an investor and its associate or joint venture. The Company anticipate that these amendments will be adopted in the financial statements for the annual periods beginning on the respective dates as indicated above. The Company have not yet had an opportunity to consider the potential impact of the adoption of these amendments, except for amendments effective 1 January 2022, which the Company is still assessing the impact.
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