3 Material Accounting Policy Information

Material Accounting Policy Information

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, unless otherwise stated.

Standards, interpretations and amendments to existing standards that are effective in 2023

The following new and revised IFRSs, which became effective for annual periods beginning on or after 1 January 2023, have been adopted in these consolidated financial statements. With the exception of IFRS 17 (Note 3(a)), the adoption of the below has not had any material impact on the disclosures or on the amounts reported in these consolidated financial statements.

• IFRS 17 requires insurance liabilities to be measured at a current fulfilment value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve the goal of a consistent, principle-based accounting for insurance contracts. IFRS 17 supersedes IFRS 4 Insurance Contracts as of 1 January 2023
• Amendments to IFRS 17 to address concerns and implementation challenges that were identified after IFRS 17 Insurance Contracts was published in 2017
• Amendment to IFRS 17 Insurance Contracts Initial Application of IFRS 17 and IFRS 9 – Comparative Information
• Amendments to IFRS 4 Insurance Contracts Extension of the Temporary Exemption from Applying IFRS 9
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2
• Amendments to IAS 12 Income Taxes relating to Deferred Tax related to Assets and Liabilities arising from a Single Transaction.
• Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

Amendment to standards and interpretations issued but not yet effective

The Group has not yet early applied the following new standards, amendments and interpretations that have been issued but are not yet effective:

Management anticipates that these new standards, interpretations and amendments will be adopted in the Group’s consolidated financial statements for the period of initial application and adoption of these new standards, interpretations and amendments may have no material impact on the consolidated financial statements of the Group in the period of initial application.

• IFRS 17 – Insurance Contracts

International Financial Reporting Standard (IFRS) 17, “Insurance Contracts” establishes principles for the recognition, measurement, presentation and disclosure of insurance contracts and investment contracts with discretionary participation features. It introduces a model that measures groups of contracts based on the Group’s estimates of the present value of future cash flows that are expected to arise as the Group fulfils the contracts, an explicit risk adjustment for non-financial risk and a contractual service margin.

Under IFRS 17, insurance revenue in each reporting period represents the changes in the liabilities for remaining coverage that relate to services for which the Group expects to receive consideration and an allocation of premiums that relate to recovering insurance acquisition cash flows. In addition, investment components are no longer included in insurance revenue and insurance service expenses.

IFRS 17 replaces IFRS 4 Insurance Contracts for annual periods on or after I January 2023. The Group has restated comparative information applying the transitional provisions to IFRS 17. The nature of the changes in accounting policies can be summarized, as follows:

The objective of IFRS 17 is to ensure that an entity provides relevant information that faithfully represents those contracts. This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the entity’s financial position, financial performance and cash flows. This standard is effective for periods beginning on or after 1 January 2023.