1.2.1. NEW AND AMENDED STANDARDS AND INTERPRETATIONS

The following new and amended standards and interpretations effective as of January 1st 2019 had an effect on these consolidated financial statements:

Standard
Description
Effect of implementation
IFRS 16 Leases

The new standard is effective for reporting periods beginning on or after January 1st 2019 and establishes principles for the recognition, measurement, presentation and disclosure of leases. Practically all lease transactions result in the lessee acquiring a right-of-use asset and incurring a lease liability. Thus, IFRS 16 Leases (IFRS 16) abolishes the operating and finance lease classification under IFRS 17 and provides a single lessee accounting model,

The lessee will be required to recognise:

  • assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value, and
  • depreciation/amortisation of the leased asset separately from interest on lease liability in the statement of profit or loss.

 

IFRS 16’s approach to lease accounting by lessors is substantially unchanged from its predecessor, IAS 17. Lessors continue to classify leases as operating or finance leases, each subject to different accounting treatment. However, in the case of subleases, intermediate lessors will classify a sublease contract by reference to a right-of-use asset rather than by reference to the underlying asset as defined in IAS 17, so there is an increased probability that a sublease previously classified as an operating lease will be classified as a finance lease under IFRS 16.

 

The impact of the amendments to

IFRS 16 on the consolidated financial statements is presented

in Note 1.2.2.

Amendments to the standards other than those referred to above were either not applicable or irrelevant to the Group’s consolidated financial statements.