15. New standards and interpretations and their amendments

Standards and interpretations and their amendments effective from
1 January 2023

Standards and interpretations * Description of changes and impact
IFRS 17 “Insurance contracts” (1.01.2023/ 19.11. 2021) and amendments to IFRS 17 (1.01.2023/ 8.09.2022) For details, see Note 14 “IFRS 17 Insurance contracts”.
Amendments to IAS 1 “Presentation of financial statements” and IAS 8 “Accounting policies, changes in accounting estimates and errors”

(1.01.2023/2.03.2022))

 Amendments to IAS 1 contain guidelines on the application of the term “material” in disclosures of the accounting policies. Instead of significant accounting policies, the amendments require disclosure of material information about accounting policies, with explanations and examples of how an entity can identify material information about accounting policies.

The amendments to IAS 8 introduce a new definition of accounting estimates. Under the new definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement uncertainty. The introduction of the definition of accounting estimates and other amendments to IAS 8 are intended to help entities distinguish between changes in accounting policies and changes in accounting estimates.

The amendments to IAS 1 affect the scope of information presented in the Group’s annual financial statements for 2023.

For details, see “BASIS FOR PREPARATION OF THE FINANCIAL STATEMENTS”.
Amendments to IAS 1 – classification of liabilities

(1.01.2024/ 19.12.2023)

 The changes relate to the classification of liabilities in the statement of financial position as short-term or long-term. They clarify that the classification of liabilities as short-term or long-term should take into account, as at the classification date, the existence of a debt extension, regardless of the entity’s intention to use it for a period longer than 12 months, and should take into account the fulfillment of the conditions of such extension as at the date of assessment, if it is conditional.

The Group does not have any agreements containing the aforementioned provisions and therefore the Group is not affected by the amendment.
Amendments to IAS 12 “Income taxes”

(1.01.2023/11.08.2022)

 Amendments to IAS 12 require that the entities recognise in the financial statements deferred tax assets and liabilities resulting from transactions, other than business combinations, in which equal amounts of deductible and taxable temporary differences arise on initial recognition.

The amendment is presentational in nature.

For details, see note: “INCOME TAX”.
Amendments to IAS 12 “Income taxes”

(1.01.2023/8.11.2023)

 The amendments apply to entities for which OECD Pillar 2 tax regulations apply, i.e. the introduction of global minimum taxation for the largest groups earning profits in different tax jurisdictions (“Pillar”). Among other things, the amendments introduce an exception to the requirements of IAS 12, whereby entities do not recognise and disclose deferred tax assets and liabilities related to the Pillar. The application of the exception must be disclosed by entities. In addition, the amendments also introduce, among other things, a requirement for separate disclosure of current tax expense related to the Pillar.

The provisions for a global minimum tax have not yet been implemented in Poland. They have also not been implemented in certain jurisdictions where the Group operates (Ukraine, Sweden). From 2024 onwards, they will apply in tax jurisdictions where the Group operates in the form of foreign branches (Germany, Czech Republic, Slovakia, Romania).

The Group is currently evaluating the future impact on the consolidated financial statements.
Amendment to IFRS 16 “Leases”

(1.01.2024/20.11.2023)

 The amendments clarify how a seller-lessee should measure sale and leaseback transactions that meet the requirements of IFRS 15 to recognise an asset as a sale.

The amendments concern cases where the instalments payable under a leaseback agreement are variable, i.e. other than based on a rate or index.

The amendments require the seller-lessee to measure the lease liability in such a way that the differences between the actual variable amounts paid under the agreement and the amounts included in the initial measurement of the liability are recognised directly through profit or loss.

A retrospective approach applies to these amendments.

The Group does not currently have sale and leaseback transactions with variable lease instalments other than those based on a rate or index, and therefore the Group is not affected by the amendment.
* The effective date in EU / date of endorsement by EU is provided in parentheses

New standards and interpretations, and amendments thereto, which have been published but have not been endorsed by the European Union

Standards and interpretations * Description of changes and impact
Amendments to IAS 7 “Statement of Cash Flows”

and amendments to IFRS 7 “Financial Instruments: Disclosures”

(1.01.2024/ NO DATA)

 The amendments require additional disclosures for reverse factoring agreements. Entities will be required to disclose information in financial statements to enable users of financial statements:
  • an assessment of how the aforementioned agreements affect the entity’s liabilities and cash flows; and
  • understanding the impact of the aforementioned agreements on the entity’s exposure to liquidity risk and the impact when the agreements expire.

In addition, the amendments complement the current IFRS requirements by adding additional disclosure requirements to IAS 7 on, among other things:

  • terms and conditions of reverse factoring agreements;
  • disclosures at the beginning and end of the reporting period of the carrying amount of the aforementioned liabilities, the value of liabilities paid, the timing of payments.

The IASB has decided that, in most cases, entities can present aggregated information on the above matters.

The Group does not currently have any reverse factoring transactions relating to the above amendments and therefore the Group should not be affected by the amendment.
* the expected effective date in EU / date of endorsement by EU is provided in parentheses
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