Page 30 - 2021 ANNUAL REPORT draft

Standards and interpretations effective during the reporting period

Amendments to the following standard(s) became effective in the annual period starting from 1 January
2021. The new reporting requirements as a result of the amendments and/or clarifications have been
evaluated and their impact or otherwise are noted below:

Amendment to IAS 1 and IAS 8

In October 2018, the IASB issued the definition of ‘material’. The amendments which became effective in
the annual reporting periods starting from 1 January 2020 are intended to clarify, modify and ensure that
the definition of ‘material’ is consistent across all IFRS. In IAS 1 (Presentation of Financial Statements) and
IAS 8 (Accounting Policies, Changes in Accounting Estimates and Errors), the revised definition of ‘material’
is quoted below: “An information is material if omitting, misstating or obscuring it could reasonably be
expected to influence decisions that the primary users of general-purpose financial statements make based
on those financial statements, which provide financial information about a specific reporting entity”
The amendments laid emphasis on five (5) ways material information can be obscured. These include:
If the language regarding a material item, transaction or other event is vague or unclear;
If information regarding a material item, transaction or other event is scattered in different places in the
financial statements;
If dissimilar items, transactions or other events are inappropriately aggregated;
If similar items, transactions or other events are inappropriately disaggregated; and
If material information is hidden by immaterial information to the extent that it becomes unclear what
information is material.

The Bank has taken into consideration the new definition in the preparation of its financial statement.

3.2 Standards issued but not yet adopted
The following standards have been issued or amended by the IASB but are yet to become effective for
annual periods beginning on or after 1 January 2021:

Classification of Liabilities as Current or Non-Current (Amendments to IAS 1)

The amendments were issued on 23rd January 2020. This affects only the presentation of liabilities in the
statement of financial position not the amount or timing of recognition of any asset, liability income or
expenses, or the information that entities disclose about those items. They:
• clarify that the classification of liabilities as current or non-current should be based on rights that
are in existence at the end of the reporting period and align the wording in all affected paragraphs
to refer to the "right" to defer settlement by at least twelve months and make explicit that only rights
in place "at the end of the reporting period" should affect the classification of a liability;
• clarify that classification is unaffected by expectations about whether an entity will exercise its right
to defer settlement of a liability; and

• make clear that settlement refers to the transfer to the counterparty of cash, equity instruments,
other assets or services.
The amendments are effective for annual reporting periods being on or after 1st January 2023.

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Guaranty Trust Bank (Gambia) Limited Financial Statements December 2021