# 3. APPLICATION OF AMENDMENTS TO INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRSs”)

# Amendments to IFRSs that are mandatorily effective for the current year

In the current year, the Group has applied the Amendments to References to the Conceptual Framework in IFRS Standards and the following amendments to IFRSs issued by the International Accounting Standards Board (“IASB”) for the first time, which are mandatorily effective for the annual period beginning on or after 1 January 2020 for the preparation of the consolidated financial statements:

<table><tr><td>Amendments to IAS 1 and IAS 8</td><td>Definition of Material</td></tr><tr><td>Amendments to IFRS 3</td><td>Definition of a Business</td></tr><tr><td>Amendments to IFRS 9, IAS 39 and IFRS 7</td><td>Interest Rate Benchmark Reform</td></tr></table>

Except as described below, the application of the Amendments to References to the Conceptual Framework in IFRS Standards and the amendments to IFRSs in the current year had no material impact on the Group’s financial positions and performance for the current and prior years and/or on the disclosures set out in these consolidated financial statements.

# 3.1 Impacts on application of Amendments to IAS 1 and IAS 8 “Definition of Material”

The Group has applied the Amendments to IAS1 and IAS 8 for the first time in the current year. The amendments provide a new definition of material that states “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 on the basis of those financial statements, which provide financial information about a specific reporting entity.” The amendments also clarify that materiality depends on the nature or magnitude of information, either individually or in combination with other information, in the context of the financial statements taken as a whole.

The application of the amendments in the current year had no impact on the consolidated financial statements.

# 3.2 Impacts on application of Amendments to IFRS 3 “Definition of Business”

The Group has applied the amendments for the first time in the current year. The amendments clarify that while businesses usually have outputs. Outputs are not required for an integrated set of activities and assets to qualify as a business. To be considered a business, an acquired set of activities and assets must include, at a minimum, an input and a substantive process that together significant contribute to the ability to create outputs.

The amendments remove the assessment of whether market participants are capable of replacing any missing inputs or processes and continuing to produce outputs. The amendments also introduce additional guidance that helps to determine whether a substantive process has be acquired.

In addition, the amendments introduce an optional concentration test that permits a simplified assessment of whether an acquired set of activities and assets is no a business. Under the optional concentration test, the acquired set of activities and assets is not a business if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar assets. The gross assets under assessment exclude cash and cash equivalents, deferred tax assets, and goodwill resulting from the effects of deferred tax liabilities. The election on whether to apply the optional concentration test is available on transaction-by-transaction basis.

The application of the amendments had no impact on the consolidated financial statements in the current year as similar conclusion would have been reached without applying the optional concentration test.

# New and amendments to IFRSs in issue but not yet effective

The Group has not early applied the following new and amendments to IFRSs that have been issued but are not yet effective:

<table><tr><td>IFRS 17</td><td> Insurance Contracts and the related Amend1ment</td></tr><tr><td>Amendment to IFRS 16</td><td> Covid-19-R4elated Rent Concessions</td></tr><tr><td>Amendments to IFRS 3</td><td> Reference to the Conceptual Framework2</td></tr><tr><td>Amendments to IFRS 9, IAS 39, 
IFRS 7, IFRS 4 and IFRS 16</td><td>Interest Rate Benchmark Reform – Phase 25</td></tr><tr><td>Amendments to IFRS 10 and IAS 28</td><td> Sale or Contribution of Assets between an Investor and 
i3ts Associate or Joint Venture</td></tr><tr><td>Amendments to IAS 1</td><td> Classifi1cation of Liabilities as Current or Non-current</td></tr><tr><td>Amendments to IAS 16</td><td> Property, Plant and Equipment – Proceeds before 
Intended U2se</td></tr><tr><td>Amendments to IAS 1 and 
IFRS Practice Statement 2</td><td>Discl1osure of Accounting Policies</td></tr><tr><td>Amendments to IAS 8</td><td> Definition of A1ccounting Estimates</td></tr><tr><td>Amendments to IAS 37</td><td> O2nerous Contracts – Cost of Fulfilling a Contract</td></tr><tr><td>Amendments to IFRSs</td><td> Annual Improvements to IFRSs 2018-20202</td></tr></table>

1 Effective for annual periods beginning on or after 1 January 2023.

2 Effective for annual periods beginning on or after 1 January 2022.

3 Effective for annual periods beginning on or after a date to be determined.

4 Effective for annual periods beginning on or after 1 June 2020.

5 Effective for annual periods beginning on or after 1 January 2021.

Except for the new and amendments to IFRSs mentioned below, the directors of the Company anticipate that the application of all other new and amendments to IFRSs will have no material impact on the consolidated financial statements in the foreseeable future.

# Amendments to IFRS 3 “Reference to the Conceptual Framework”

The amendments:

• Update a reference in IFRS 3 “Business Combinations” so that it refers to the Conceptual Framework for Financial Reporting issued by IASB in March 2019 (“the “Conceptual Framework”) instead of the International Accounting Standards Committee’s Framework for the Preparation and Presentation of Financial Statements (replaced for the Conceptual Framework for Financial Reporting issued in September 2010);

• Add a requirement that, for transactions and other events within the scope of IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” or IFRIC 21 “Levies”, an acquirer applies IAS 37 or IFRIC 21 instead of Conceptual Framework to identify the liabilities it has assumed in a business combination; and

• Add an explicit statement that an acquirer does not recognise contingent assets acquired in a business combination.

The Group will apply the amendments prospectively to business combinations for which the date of acquisition is on or after the beginning of the first annual period beginning on or after 1 January 2022. The application of the amendments is not expected to have significant impact on the financial position and performance of the Group.