Notes (continued)
(1) Accounting policies (continued)
On 28 May 2020, the IASB issued COVID-19-Related Rent Concessions - amendment to IFRS 16 Leases. The amendments provide relief to lessees
from applying IFRS 16 guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic. As
a practical expedient, a lessee may elect not to assess whether a COVID-19 related rent concession from a lessor is a lease modification. A lessee that
makes this election accounts for any change in lease payments resulting from the COVID-19 related rent concession the same way it would account
for the change under IFRS 16, if the change were not a lease modification.
The amendment was intended to apply until 30 June 2021, but as the impact of the COVID-19 pandemic is continuing, on 31 March 2021, the IASB
extended the period of application of the practical expedient to 30 June 2022.The amendment applies to annual reporting periods beginning on or after
1 April 2021. However, the Group did not apply the practical expedient and continues to apply IFRS 16 guidance on lease modification accounting for
rent concessions.
Standards issued but not yet effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial
statements are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become
effective.
- IFRS 17 Insurance Contracts, effective for reporting periods beginning on or after 1 January 2023, with comparative figures required.
- Amendments to IAS 1: Classification of Liabilities as Current or Non-current, effective for annual reporting periods beginning on or after 1
January 2023 and must be applied retrospectively.
- Reference to the Conceptual Framework – Amendments to IFRS 3, effective for annual reporting periods beginning on or after 1 January
2022 and apply prospectively.
- Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16, effective for annual reporting periods beginning
on or after 1 January 2022 and must be applied retrospectively.
- Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37, effective for annual reporting periods beginning on or after 1
January 2022.
- IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter, effective for annual reporting
periods beginning on or after 1 January 2022.
- IFRS 9 Financial Instruments – Fees in the ’10 per cent’ test for derecognition of financial liabilities, effective for annual reporting periods
beginning on or after 1 January 2022.
- Definition of Accounting Estimates - Amendments to IAS 8, effective for annual reporting periods beginning on or after 1 January 2023.
- Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2, applicable for annual periods beginning on or
after 1 January 2023.
The Group is currently assessing the amendments to determine the impact they will have on the Group’s financial statements.
Voluntary changes in significant accounting policies and correction of errors
(a) In these financial statements, the Group and the Company has adopted changes in the accounting policy in respect of recognition of internally
generated intangible assets. The change relates to to development of software, mainly consisting of internally capitalised salary expenses.
For details see Note 10.
All costs incurred in 2020 which were recognized as part of the cost of an intangible asset qualified the capitalization criteria as at the date
when such costs were incurred. However, initially they were expensed in accordance with accounting policy applicable at that time. Following
the change in accounting policy expenses, including past expenses, meeting the capitalization criteria as at the date of its occurrence were
capitalized. Management considers that the change in accounting policies more accurately reflects the Company's process in regards to
internally developing IT resources as well as better aligns costs with income.
Group has made an assessment on the change in accounting policy impact on the beginning of the earliest period presented, i.e. 1 January
2020. Management assessed capitalization criteria as per IAS 38 as of 1 January 2020 and concluded that no relevant costs qualified with
requirements of IAS 38 as at that date.
(b) The Management has identified a clasification error on bond issuance commissions while preparing 2021 Group’s and Company’s financial
statements. The error relates to incorrect classification of bond issuance commissions as bank commissions under Administrative costs. The
error resulted in overstatement of amount of bank commission expenses and understatement of interest expenses;
(c) The Management has also identified a clasification error on accrued interest expenses. The error relates to incorrect classification of accrued
interest expenses for other borrowings under Credit loss expense and resulted in overstated amount of credit loss expenses and
understatement of interest expenses. To comply with presentation requitements of IFRS 9, the Group reclassified mentioned amount from
Credit loss expense to Interest expenses and similar expenses.