- Amendments to

IAS 16 Property, Plant and Equipment

prohibit a company from deducting from the

cost of property, plant and equipment amounts received from selling items produced while the company

is preparing the asset for its intended use. Instead, a company will recognize such sales proceeds and

related cost in profit or loss.

- Amendments to

IAS 37 Provisions, Contingent Liabilities and Contingent Assets

specify which costs

a company includes when assessing whether a contract will be loss-making.

-

Annual Improvements 2018-2020

make minor amendments to IFRS 1 First-time Adoption of

International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture and the

Illustrative Examples accompanying IFRS 16 Leases.

The amendments do not affect the consolidated Financial Statements.

3.1.2.

New Standards, Interpretations, Revisions and Amendments to existing Standards

that have not been applied yet or have not been adopted by the European Union

The following new Standards, Interpretations and amendments of IFRSs have been issued by the

International Accounting Standards Board (IASB), but their application is not effective yet or they have

not been adopted by the European Union.

IFRS 17 “Insurance Contracts” (effective for annual periods starting on or after 01/01/2023)

In May 2017, the IASB issued a new Standard, IFRS 17, which replaces an interim Standard, IFRS 4. The

aim of the project was to provide a single principle-based standard to account for all types of insurance

contracts, including reinsurance contracts that an insurer holds. A single principle-based standard would

enhance comparability of financial reporting among entities, jurisdictions and capital markets. IFRS 17

sets out the requirements that an entity should apply in reporting information about insurance contracts

it issues and reinsurance contracts it holds. Furthermore, in June 2020, the IASB issued amendments,

which do not affect the fundamental principles introduced when IFRS 17 has first been issued. The

amendments are designed to reduce costs by simplifying some requirements in the Standard, make

financial performance easier to explain, as well as ease transition by deferring the effective date of the

Standard to 2023 and by providing additional relief to reduce the effort required when applying the

Standard for the first time. The Group will examine the impact of the above on its Financial Statements,

though it is not expected to have any. The above have been adopted by the European Union with

effective date of 01/01/2023.

Amendments to IAS 1 “Presentation of Financial Statements” (effective for annual periods starting on

or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that pertain to accounting policy

disclosures. The objective of these amendments is to improve accounting policy disclosures so that they

provide more useful information to investors and other primary users of the financial statements. More

specifically, companies are required to disclose their material accounting policy information rather than

their significant accounting policies. The Group will examine the impact of the above on its Financial

Statements, though it is not expected to have any. The above have been adopted by the European Union

with effective date of 01/01/2023.

Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors: Definition

of Accounting Estimates” (effective for annual periods starting on or after 01/01/2023)

In February 2021, the IASB issued narrow-scope amendments that they clarify how companies should

distinguish changes in accounting policies from changes in accounting estimates. That distinction is

important because changes in accounting estimates are applied prospectively only to future transactions

and other future events, but changes in accounting policies are generally also applied retrospectively to

past transactions and other past events. The Group will examine the impact of the above on its Financial

Statements, though it is not expected to have any. The above have been adopted by the European Union

with effective date of 01/01/2023.

Amendments to IAS 12 “Income Taxes: Deferred Tax related to Assets and Liabilities arising from a

Single Transaction” (effective for annual periods starting on or after 01/01/2023)

In May 2021, the IASB issued targeted amendments to IAS 12 to specify how companies should account

for deferred tax on transactions such as leases and decommissioning obligations – transactions for which

companies recognise both an asset and a liability. In specified circumstances, companies are exempt from

recognising deferred tax when they recognise assets or liabilities for the first time. The amendments

clarify that the exemption does not apply and that companies are required to recognise deferred tax on

such transactions. The Group will examine the impact of the above on its Financial Statements, though it

is not expected to have any. The above have been adopted by the European Union with effective dated of

01/01/2023.

Amendments to IFRS 17 “Insurance contracts: Initial Application of IFRS 17 and IFRS 9 –

Comparative Information” (effective for annual periods starting on or after 01/01/2023)

In December 2021, the IASB issued a narrow-scope amendment to the transition requirements in IFRS 17

to address an important issue related to temporary accounting mismatches between insurance contract

liabilities and financial assets in the comparative information presented when applying IFRS

17 “Insurance Contracts” and IFRS 9 “Financial Instruments” for the first time.

The amendment aims to

improve the usefulness of comparative information for the users of the financial statements. The Group

will examine the impact of the above on its Financial Statements, though it is not expected to have any.

The above have been adopted by the European Union with effective dated of 01/01/2023.

Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” (effective for annual

periods starting on or after 01/01/2024)

In January 2020, the IASB issued amendments to IAS 1 that affect requirements for the presentation of

liabilities. Specifically, they clarify one of the criteria for classifying a liability as non-current, the

requirement for an entity to have the right to defer settlement of the liability for at least 12 months after

the reporting period. The amendments include: (a) specifying that an entity’s right to defer settlement

must exist at the end of the reporting period; (b) clarifying that classification is unaffected by

management’s intentions or expectations about whether the entity will exercise its right to defer

settlement; (c) clarifying how lending conditions affect classification; and (d) clarifying requirements for

classifying liabilities an entity will or may settle by issuing its own equity instruments. Furthermore, in

July 2020, the IASB issued an amendment to defer by one year the effective date of the initially issued

amendment to IAS 1, in response to the Covid-19 pandemic. However, in October 2022, the IASB issued

an additional amendment that aim to improve the information companies provide about long-term debt

with covenants. IAS 1 requires a company to classify debt as non-current only if the company can avoid

settling the debt in the 12 months after the reporting date. However, a company’s ability to do so is often

subject to complying with covenants. The amendments to IAS 1 specify that covenants to be complied

with after the reporting date do not affect the classification of debt as current or non-current at the

reporting date. Instead, the amendments require a company to disclose information about these

covenants in the notes to the financial statements. The amendments are effective for annual reporting

periods beginning on or after 1 January 2024, with early adoption permitted. The Group will examine the

impact of the above on its Financial Statements. The above have not been adopted by the European

Union.

Amendments to IFRS 16 “Leases: Lease Liability in a Sale and Leaseback” (effective for annual

periods starting on or after 01/01/2024)

In September 2022, the IASB issued narrow-scope amendments to IFRS 16 “Leases” which add to

requirements explaining how a company accounts for a sale and leaseback after the date of the

transaction. A sale and leaseback is a transaction for which a company sells an asset and leases that same

asset back for a period of time from the new owner. IFRS 16 includes requirements on how to account for

a sale and leaseback at the date the transaction takes place. However, IFRS 16 had not specified how to

measure the transaction when reporting after that date. The issued amendments add to the sale and

leaseback requirements in IFRS 16, thereby supporting the consistent application of the Accounting

Standard. These amendments will not change the accounting for leases other than those arising in a sale

and leaseback transaction. The Group will examine the impact of the above on its Financial Statements,

though it is not expected to have any. The above have not been adopted by the European Union.

average exchange rate applicable in the relevant financial year.

Any differences arising from that

procedure have been debited / (credited) to a reserve of exchange differences in equity (foreign currency

translation reserve).

Any differences in the sums are due to rounding

Impairment of financial assets

The Group and the Company recognize impairment

provisions for expected credit losses of all financial

assets except for those

measured at fair value through profit and loss.

The purpose of IFRS 9 ‘s impairment requirements is to recognize expected credit losses over the financial

asset ‘s lifetime, whose credit risk has increased after initial recognition, regardless if the assessment is at

an aggregated or standalone level, using all information which can be collected, based on both historical

and current data as well, but also data in respect of reasonable future estimates.

In applying the above mentioned approach, a distinction is made between:

•

financial instruments that have not deteriorated significantly in credit quality since initial

recognition or that have low credit risk (‘Stage 1’)

•

financial instruments that have deteriorated significantly in credit quality since initial recognition

and whose credit risk is not low (‘Stage 2’), and

•

financial instruments for which there is objective evidence of impairment at the reporting date.

(Stage 3).

For financial instruments of Stage 1, 12-month expected credit losses are recognised, while for financial

assets of Stage 2 or Stage 3

- expected credit losses are recognised over their lifetime.

Credit losses are defined as the difference between all the contractual cash flows that are due to and the

cash flows that are actually expected to be received by the Group or the Company. This difference is

discounted at the original effective interest rate of the financial asset.

The Group and the Company apply the simplified approach of this Standard for contract assets, trade

receivables and receivables from leases by calculating the expected credit losses over the lifetime of the

abovementioned instruments. In this case, the expected credit losses reflect the expected shortfalls in

contractual cash flows, considering the potential for default at any point during the life of the financial

instrument. In calculating the expected credit losses, the Group uses a provision matrix in which the

above mentioned financial instruments have been grouped based on balances’ nature and ageing, by

taking into account available historical data in respect of the debtors, adjusted with future factors related

to debtors and financial environment.

Income from rentals:

Revenue from operating leases of the Group’s investment properties is recognised

gradually over the life of the lease. The application of IFRS 15 has no effect on revenue recognition of this

category as it falls into application frame of IAS 17.

Income from Interest and Dividends:

Interest income

is recognised using the effective interest rate

method which is the rate which

accurately discounts the estimated future cash flows to be collected or

paid in cash during the expected life

of the financial asset or liability, or when required for a shorter

period of time, at its net present value.

Dividends are recognised as income upon establishing their collection right.

Expenses

Expenses are recognised in the income statement on an accrual basis. Payments made for operational

leases are transferred to profit or loss as expenses at the time the lease is used.

Expenses from interest are

recognised on an accrual basis.