Page 32 - Agib Bank Ltd Annual Report and IFRS Financial statements 2020

2. Basis of preparation

2.1 Statement of compliance

These financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRS”) and current interpretations issued by the International Financial Reporting
Interpretations Committee (“IFRIC”) and with the relevant provisions of the Banking Act 2009 and The
Companies Act 2013.

The financial statements were approved by the Board of Directors on …………………...........2021.

2.2 Basis of measurement
These financial statements are prepared under the historical cost basis.

2.3 Functional and presentation currency
The financial statements are presented in The Gambian dalasis (D), which represents the functional and
presentation currency of the Bank, being the currency of the economic environment in which the Bank
operates. The financial statements have been prepared under the assumption that the Bank will continue
as a going concern.

2.4 Use of estimates and judgments
The presentation of financial statements in conformity with IFRS requires the preparation of estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities as of the date of the financial statements and their reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those estimates and future changes
in the economic conditions, business strategies, regulatory requirements, accounting rules or/and other
factors could subsequently result in a change in estimates that could have a material impact on the reported
financial position and results of operations. The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is
revised if the revision affects only that period or in the period of the revision and future periods if the revision
affects both current and future periods

3 Adoption of New and Revised Standard
3.1 New and revised IFRS applied on the Financial Statement

Amendments to IFRS 16

The amendment exempts lessees from having to consider individual lease contracts to determine whether
rent concessions occurring as a direct consequence of the covid-19 pandemic are lease modifications and
allows lessees to account for such rent concessions as if they were not lease modifications. It applies to
covid-19-related rent concessions that reduce lease payments due on or before 30 June 2021.

IFRS 16 specifies how lessees should account for changes in lease payments, including concessions.
However, applying those requirements to a potentially large volume of covid-19-related rent concessions
could be practically difficult, especially in the light of the many challenges stakeholders face during the
pandemic. This optional exemption gives timely relief to lessees and enables them to continue providing
information about their leases that is useful to investors. The amendment does not affect lessors.

The amendment is effective 1 June 2020 but, to ensure the relief is available when needed most, lessees
can apply the amendment immediately in any financial statements—interim or annual—not yet authorised
for issue.

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