Initial application of standards, interpretations, and amendments in the financial year

IFRSs endorsed by the EU

Proceeds before Intended Use

Jan. 1, 2022

The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The definition of the costs of testing is specified. Revenue and cost that relate to items produced that are not an output of the entity’s ordinary activities must be presented separately. The line item in the statement of comprehensive income that includes such revenue must be stated.

Onerous Contracts – Cost of Fulfilling a Contract

Jan. 1, 2022

The amendment clarifies that the cost of fulfilling a contract includes all directly attributable costs. The cost of fulfilling the contract includes both the incremental costs of fulfilling that contract (such as direct wage and material costs) and an allocation of other costs that relate directly to fulfilling contracts. In addition, it is clarified that before a provision for an onerous contract is established, an entity should recognize any impairment loss that has occurred on assets used in (previously: dedicated to) fulfilling the contract.

Reference to the Conceptual Framework

Jan. 1, 2022

A reference was included in IFRS 3 to the revised 2018 Conceptual Framework for Financial Reporting. Requirement that, for identifying liabilities within the scope of IAS 37 or IFRIC 21, an acquirer should apply IAS 37 or IFRIC 21 (instead of the Conceptual Framework) to identify the liabilities it has assumed in a business combination. Addition of an explicit statement that an acquirer should not recognize contingent assets acquired in a business combination.

Annual Improvements to IFRSs 2018–2020 Cycle

Jan. 1, 2022

Revision of specific aspects in IFRS 1, IFRS 9, IFRS 16, and IAS 41.