Page 103 - RFHL ANNUAL REPORT 2024_ONLINE

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2. Material accounting policies (continued)
2.3 Changes in accounting policies (continued)
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 - Amendments to IAS 1 - Disclosure of
Accounting Policies (effective January 1, 2023) (continued)

The amendments aim to help entities provide accounting policy disclosures that are more useful by:
• Replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose
their ‘material’ accounting policies
• Adding guidance on how entities apply the concept of materiality in making decisions about accounting policy
disclosures

The amendments provide guidance and examples to help entities apply materiality judgements to accounting policy
disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by
replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose
their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making
decisions about accounting policy disclosures.

These amendments were incorporated within these Consolidated financial statements of the Group.

2.4 Standards in issue not yet effective
The following is a list of standards and interpretations that are not yet effective up to the date of issuance of the Group’s
Consolidated financial statements. These standards and interpretations will be applicable to the Group at a future
date and will be adopted when they become effective. The Group is currently assessing the impact of adopting these
standards and interpretations.

IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 – Amendments to IAS 1 – Classification of
Liabilities as Current or Non-current (effective January 1, 2024)
The IASB issued amendments to paragraphs 69 to 76 of IAS 1 Presentation of Financial Statements to specify the
requirements for classifying liabilities as current or non-current.

The amendments clarify:
• What is meant by a right to defer settlement
• That a right to defer must exist at the end of the reporting period
• That classification is unaffected by the likelihood that an entity will exercise its deferral right
• That only if an embedded derivative in a convertible liability is itself an equity instrument, would the terms of a liability
not impact its classification

IFRS 16 Leases – Amendments to IFRS 16 (effective January 1, 2024)
The amendment specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and
leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the
right of use it retains.

After the commencement date in a sale and leaseback transaction, the seller-lessee applies paragraphs 29 to 35 of IFRS
16 to the right-of-use asset arising from the leaseback and paragraphs 36 to 46 of IFRS 16 to the lease liability arising from
the leaseback. In applying paragraphs 36 to 46, the seller-lessee determines ‘lease payments’ or ‘revised lease payments’
in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use
retained by the seller-lessee. Applying these requirements does not prevent the seller-lessee from recognising, in the
Consolidated statement of income, any gain or loss relating to the partial or full termination of a lease, as required by
IFRS 16.