STANDARDS AND INTERPRETATIONS NOT MANDATORILY APPLICABLE TO THE COMPANY AS OF JANUARY 1, 2022

The following standards and amendments published by the IASB and endorsed by the European Union are not mandatorily applicable as of January 1, 2022:

  • Amendments to IFRS 17 − 'Insurance contracts: Initial Application of IFRS 17 and IFRS 9 – Comparative Information';
  • Amendments to IAS 1 − ’Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies’;
  • Amendments to IAS 8 − 'Definition of Accounting Estimates'; and
  • Amendments to IAS 12 − 'Deferred Tax related to Assets and Liabilities arising from a Single Transaction';

The Company continued its evaluation of the impact of the IAS 12 Income Taxes amendment which was issued in May 2021 and is effective 1 January 2023. Balances affected by the amendment are the deferred tax assets and liabilities recognized in respect of right-of-use assets, lease liabilities and demobilization provisions.

In prior financial periods, the use of the initial recognition exemption was allowed and as of 1 January 2023 this will no longer be possible. The analysis performed would result in recognition of additional deferred tax assets and deferred liabilities on the balance sheet of US$11 million each with an insignificant impact on the opening retained earning balance of less than US$1 million. This assessment is performed based on the balance sheet positions affected by the amendment as per December 31, 2022 and current tax legislations.

Regarding the remaining amendments, the Company does not expect a material impact on the financial statements due to their future adoption.

Other new standards and amendments have been published by the IASB but have not been endorsed yet by the European Commission. Early adoption is not possible until European Commission endorsement. Those which may be relevant to the Company are set out below:

  • Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback;
  • Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current Deferral of Effective Date;

The Company does not expect a significant effect on the financial statements due to the adoption of the remaining amendments. Other standards and amendments are not relevant to the Company.