NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2023 2 BASIS OF PREPARATION (continued) 2.5 Changes in material accounting policies New accounting standards and amendments The Group has applied the recognition and measurement principles of the following FRSs, amendments to and interpretations of FRS for the first time for the annual period beginning on 1 January 2023: • FRS 117: Insurance Contracts • Amendments to FRS 12: Deferred tax related to Assets and Liabilities arising from a Single Transaction • Amendments to FRS 12: International Tax Reform - Pillar Two Model Rules • Amendments to FRS 1 and FRS Practice Statement 2: Disclosure of Accounting Policies • Amendments to FRS 8: Definition of Accounting Estimate Other than as shown below, the application of the recognition and measurement principles of these amendments to accounting standards and interpretations did not have a material effect on the financial statements. Global minimum top-up tax The Group has adopted International Tax Reform – Pillar Two Model Rules (Amendments to IAS 12) upon their release on 23 May 2023. The amendments provide a temporary mandatory exception from deferred tax accounting for the top-up tax, which is effective immediately, and require new disclosures about the Pillar Two exposure. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions the Group operates. The legislation will be effective for the Group’s financial year beginning 1 January 2024. The Group is in the process of assessing the potential exposure arising from Pillar Two legislation. The assessment that is being carried out is based on the latest available tax filings and the latest financial information for 2023. In certain jurisdictions, information required for the assessment is still being gathered and, therefore, the assessment is not complete. Based on the assessment, most of the entities within the Group should qualify as an excluded entity. However, there are a limited number of jurisdictions where the Group may have Pillar Two exposures. The Group does not expect a material exposure to Pillar Two income taxes in those jurisdictions. Management continues to progress on the assessment and expects to complete the assessment in the financial year 2024. Material accounting policy information The Group adopted Amendments to FRS 1 and FRS Practice Statement 2: Disclosure of Accounting Policies for the first time in 2023. Although the amendments did not result in any changes to the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements. The amendments require the disclosure of ‘material’, rather than ‘significant’, accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements. Management reviewed the accounting policies and made updates to the information disclosed in Note 3 Material accounting policies (2022: Significant accounting policies) in certain instances in line with the amendments. 190 CAPITALAND INTEGRATED COMMERCIAL TRUST
RkJQdWJsaXNoZXIy NTkwNzg=