Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)
Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited)
Notes to the Financial Statements for theyear ended 31st December, 2021
Notes to the Financial Statements for theyear ended 31st December, 2021
Expr essed in tthousands housands of Eastern Caribbean Dol lars Expressed
Expr essed in tthousands housands of Eastern Caribbean Dol lars Expressed
2.
Significant Accounting Policies (continued)
Significant Accounting Policies (continued)
(b)
Changes in accounting policies and disclosures
(b)
Changes in accounting pol icies and disclosures - continued
(i)
New Accounting Standards, Amendments and Interpretations
(ii)
Standards in issue not yet effective
The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended December 31st, 2021 except for the adoption of new standards and interpretations below. Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Refor fect ive 1 st January Reform (Effect January,, 2021) m - Phase 2 (Ef The amendments in Interest Rate Benchmark Reform – Phase 2 (Amendment to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) introduce a practical expedient for mod ifications required by the reform, clarify that hedge accounting is not discontinued solely because of the interbank offered rates (IBOR) reform and introduce disclosures that allow users to understand the nature and extent of risks arising from the IBOR reform to which the entity is exposed to and how the entity manages those risks as well as the entity’s progress in transitioning from IBORs to alternative benchmarks rates and how the entity is managing this transition. (ii)
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 Company’s financial statements. These standards and interpretations may be applicable to the Company at a future date and will be adopted when they become effective. The Company is currently assessing the impact of adopting these standards and interpretations. Amendments to IFRS 16 - Covid-19 Related Rent Concessions beyond 30 June, 2021 (Effective 1st April 2021) In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees from applying the IFRS 16 guidance on lease modifications to rent concessions arising as a direct consequence of the COVID-19 pandemic. Fol lowing the amendment, the practical exped ient now appl ies to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met. In the reporting period in which a lessee first applies the 2021 amendment, the lessee will not be required to disclose the information by paragraph 28 (f) of ISAS 8. In accordance with paragraph 2 of IFRS 16, a lessee is required to apply the relief consistently to eligible contracts with similar characteristics and in similar circumstances, irrespective of whether the contract become eligible for the practical expedient before or after the amendment.
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2.
CARIB BREWERY (GRENADA) LIMITED Annual Business and Performance Report 2021
Amendments to IAS 1 6 - Pr operty oceeds Property operty,, Plant and Equipment: Pr Proceeds befor e Intended Use (Ef fect ive 1st January before (Effect January,, 2022) The amendment prohibits entities from deducting from the cost of an item of property, plant and equipment (PP&E), any proceeds of the sale of items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead, an entity recognizes the proceeds from selling such items, and the costs of producing those items, in profit or loss. Amendments to IFRS 3 - Reference to the Conceptual Framework (Ef fect ive 1 January January,, 2022) (Effect In May 2020, the IASB issued Amendments to IFRS 3 Business Combinations – Reference to the Conceptual Framework. The amendments are intended to replace a reference to a previous version of the IASB’s Conceptual Framework (the 1989 Framework) with a reference to the current version issued in March 2018 (the Conceptual Framework) without significantly changing its requirements. The amendment add an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date. Amendments to IAS 37 - Oner ous Contracts, Costs of Ful fil l ing a Onerous Contract (Ef fect ive 1 January (Effect January,, 2022) In May 2020, the IASB issued amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets to specify which costs an entity needs to include when assessing whether a contract is onerous or loss-making. The amendments apply a ‘directly related cost approach’. The costs that relate directly to a contract to provide goods or services include both incremental costs (e.g., the cost of direct labour and materials) and an allocation of costs directly related to contract activities (e.g., depreciation of equipment used to fulfill the contract as well as costs of contract management and supervision). General and administrative costs do not relate directly to a contract and are excluded unless they are explicitly chargeable to the counterparty under the contract. CARIB BREWERY (GRENADA) LIMITED Annual Business and Performance Report 2021
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