Page 30 - GTBANK GAMNBIA 2021 ANNUAL REPORT

Classification of Liabilities as Current or Non- the liabilities it has assumed in a business
Current (Amendments to IAS 1)
combination; and

The amendments were issued on 23rd January 2020. ✓ add to IFRS 3 an explicit statement that an
This affects only the presentation of liabilities in the
statement of financial position not the amount or timing of acquirer does not recognise contingent assets
recognition of any asset, liability income or expenses, or acquired in a business combination.
the information that entities disclose about those items.
They:
✓ clarify that the classification of liabilities as current The amendments are effective for annual reporting
or non-current should be based on rights that are
in existence at the end of the reporting period and periods being on or after 1st January 2022. Property,
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 Plant and Equipment — Proceeds before Intended
in place "at the end of the reporting period" should
affect the classification of a liability; Use (Amendments to IAS 16) ) Amendments to the
✓ clarify that classification is unaffected by
expectations about whether an entity will exercise standard was issued on 14th May 2020.

its right to defer settlement of a liability; and
The amendment is to prohibit deducting from the cost of an
✓ make clear that settlement refers to the transfer item of property, plant and equipment any proceeds from
to the counterparty of cash, equity instruments, selling items produced while bringing that asset to the location
other assets or services. and condition necessary for it to be capable of operating in
The amendments are effective for annual reporting the manner intended by management. Instead, an entity
periods being on or after 1st January 2023.
recognizes the proceeds from selling such items, and the cost
of producing those items, in profit or loss.

Reference to the Conceptual Framework
(Amendments to IFRS 3) The amendment is effective for annual reporting periods
being on or after 1st January 2022.

IFRS 3 establishes principles and requirements for how
an acquirer in a business combination. On 14th May 2020 Onerous Contracts — Cost of Fulfilling a Contract
amendments were issued the reference to the Conceptual (Amendments to IAS 37)
Framework in IFRS 3 without significantly changing the
requirements in the standard. IAS 37 Provisions, Contingent Liabilities and Contingent
The changes in Reference to the Conceptual Assets,, this standard outlines the accounting and
Framework (Amendments to IFRS 3): disclosure requirements for provisions, contingent assets
and liabilities . On 14th May 2020 amendments were
issued relating to Onerous contracts.
✓ update IFRS 3 so that it refers to the 2018 The changes in Onerous Contracts -Cost of Fulfilling a
Conceptual Framework instead of the 1989 Contract (Amendments to IAS 37) specify that the ‘cost of
Framework; fulfilling’ a contract comprises the ‘costs that relate directly
✓ add to IFRS 3 a requirement that, for transactions to the contract’. Costs that relate directly to a contract can
and other events within the scope of IAS 37 or either be incremental costs of fulfilling that contract
(examples would be direct labour, materials) or an
IFRIC 21, an acquirer applies IAS 37 or IFRIC 21 allocation of other costs that relate directly to fulfilling
(instead of the Conceptual Framework) to identify contracts (an example would be the allocation of the

Annual Report 2021

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