7.1. IFRS amendments

The accounting principles (policy) applied in preparing these consolidated financial statements are consistent with the ones applied in preparing the annual financial statements for the year ended 31 December 2022, except for amendments to standards and new standards or interpretations adopted by the European Union, which are binding for the periods commencing on or after 1 January 2023, and the change in presenting the statements of profit or loss described in note 7.2.

The following amendments to the existing standards issued by the International Accounting Standards Board (‘IASB’) and approved for application in the EU, have been applied for the first time in the financial statements of the Group for the year 2023:

• IFRS 17 Insurance Contracts (issued on 18 May 2017), including amendments to IFRS 17 (issued on 25 June 2020) and  amendments to IFRS 17 Initial Application of IFRS 17 and IFRS 9 – Comparative Information (issued on 9 December 2021) as a new accounting standard, which significantly changes the method of recognition, measurement, presentation and disclosure of insurance contracts, i.e. contracts under which one party (the insurer) accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder.

The amendments do not refer just to insurance companies but in some circumstances may also apply to other companies. The examples of agreements concluded by corporations, which may require analysis, are contract performance bonds issued by a third party (e.g. a guarantee issued by a parent to a subsidiary), guarantees of minimum production level granted (e.g. electric power generation by solar panels), etc.

• Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies (issued on 12 February 2021).

The amendments explain that an entity shall disclose material accounting policy information, and also comprise guidance and examples to help entities decide which information is material. The amendments also explain that accounting policy information referring to immaterial transactions, other events or conditions are immaterial and there is no need for their disclosure, but if an entity discloses immaterial accounting policy information, such information shall not obscure material accounting policy information.

The amendments clarify that accounting policy information focusing on how an entity has applied the requirements of the IFRSs to its own circumstances provides entity-specific information which is more useful to users of financial statements than standardised information, or information that only duplicates or summarises the requirements of the IFRSs.

• Amendments to IAS 8: Definition of Accounting Estimates (issued on 12 February 2021)

The amendments introduce a definition of accounting estimates, i.e. monetary amounts in financial statements that are subject to measurement uncertainty. At the same time, the amendments indicate a difference between accounting policy and accounting estimates, and explains that the effect of changing the input data or method of measurement on the estimated value represent a change in estimates, subject that the change does not result from corrections of prior period errors.

• Amendments to IAS 12: Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction (issued on 7 May 2021)

The amendment serves as an explanation of the method in which entities account for deferred tax on transactions, such as leases and decommissioning obligations, and is aimed at limiting discrepancies in reporting with regard to deferred income tax assets and liabilities related to lease and lease liabilities owing to decommissioning.

Application of the above mentioned amendments to standards and interpretations did not have any major effect on the consolidated financial statements of the Group for the year 2023.