5. Effects of new accounting standards

• IFRS 17 Insurance Contracts including amendments to IFRS 17
  On 23 November 2021, the European Union published and thus adopted its regulation on the amendment to IFRS 17 Insurance Contracts dated 18 May 2017, including the amendments dated 25 June 2020. Accordingly, entities may exempt themselves from applying IFRS 17.22 in the case of contracts with profit participation.
• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates
  The amendment to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors issued by the IASB on 12 February 2021 clarifies how entities can better distinguish between changes in accounting policies and changes in accounting estimates. It includes the definition that an accounting estimate is always related to a measurement uncertainty for a financial figure in the financial statements. The European Union published and adopted these amendments on 3 March 2022.
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies
  On 3 March 2022, the European Union published and adopted the IASB amendments from 12 February 2021 to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2. The amendments require an entity to present only its “material” accounting policies in the Notes. To be “material”, the accounting policy must be connected with material transactions or other events and there must be a reason for the presentation. The guidance in Practice Statement 2 has been adapted accordingly.
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12)
  On 12 August 2022, the European Union published and adopted the amendments to IAS 12 that were issued by the IASB on 7 May 2021. This removed uncertainties concerning how deferred taxes are accounted for with regard to leases and decommissioning obligations. The amendments mean that deferred taxes should be recognised, for example, on leases accounted for by the lessee and on decommissioning obligations.
• Amendments to IFRS 17 Insurance Contracts: First-time Application of IFRS 17 and IFRS 9 – Comparative Information
  On 9 September 2022, the European Union published and adopted the IASB’s amendments from 9 December 2021 to IFRS 17. The marginal amendment introduces the option to apply a classification overlay approach, provided certain conditions are met. This means that the comparative information about the financial instruments can be made more meaningful in the year prior to the first-time application of IFRS 17.
• Amendments to IAS 12 Income Taxes: International Tax Reform – Pillar Two Model Rules
  On 9 November 2023, the European Union published and adopted the amendments to IAS 12 International Tax Reform – Pillar Two Model Rules issued by the IASB on 23 May 2023. This amendment will include a temporary exemption from the obligation to report deferred taxes resulting from the implementation of the Pillar Two regulations, as well as specific mandatory disclosures for affected companies in IAS 12.

• Amendments to IFRS 16 Leases: Lease Liabilities from Sale and Leaseback Transactions
  On 21 November 2023, the European Union published and adopted the amendments to IFRS 16 dated 22 September 2022 that affect how lease liabilities from sale and leaseback transactions are accounted for. Following a sale, a lessee must now measure the lease liability in such a way that no amount relating to the retained right of use is recognised in profit or loss. The amendments apply to financial years beginning on or after 1 January 2024.
• Amendments to IAS 1 Presentation of Financial Statements: Classification of debt that is subject to covenants as current or non-current
  On 20 December 2023, the European Union published and adopted the amendments to IAS 1 dated 31 October 2022. The amendment concerns the classification of debt that is subject to covenants. The IASB clarifies that covenants which should be adhered to before or on the balance sheet date may affect whether the debt is classified as current or non-current. By contrast, covenants which should merely be adhered to after the balance sheet date have no impact on this classification and should be disclosed in the Notes to the financial statements. This amendment thus supplements the two amendments to IAS 1 regarding the same issue from January and July 2020. The amendments are mandatory for financial years beginning on or after 1 January 2024.

• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements
  The International Accounting Standards Board (IASB) published Supplier Finance Arrangements with the amendments to IAS 7 and IFRS 7 on 25 May 2023. The amendments relate to disclosure regulations in connection with supplier finance arrangements – also known as supply chain financing, the financing of trade liabilities or reverse factoring agreements. The supplements relate in particular to additional mandatory disclosures in the notes that aim to increase transparency regarding reverse factoring agreements and their impact on a company’s liabilities, cash flow and liquidity risk. The amendments apply to financial years beginning on or after 1 January 2024. Early adoption is permitted.
• Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability
  The IASB published its amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates on 15 August 2023. The amendment relates to the determination of the exchange rate in cases where it is not possible to convert currency over the long term and supplements IAS 21 with regulations on exchange rate conversions to be applied if one currency cannot be converted into another. The amendments apply to financial years beginning on or after 1 January 2025. Early adoption is permitted.