Financial Highlights 2017-2021

Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited) Notes to the Financial Statements for theyear ended 31st December, 2021 Expr Expr Expr Expr Expressed in t essed in t essed in t essed in t essed in thousands of Eastern Caribbean Dol housands of Eastern Caribbean Dol housands of Eastern Caribbean Dol housands of Eastern Caribbean Dol housands of Eastern Caribbean Dol lars lars lars lars lars

2. Significant Accounting Policies (continued)

(b) Changes in accounting policies and disclosures - continued (ii) Standards in issue not yet effective

 A deferred tax asset (to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized) and a deferred tax liability for all deductible and taxable temporary differences associated with:

- Right-of use assets and lease liabilities. - Decommissioning, restoration and similar liabilities and the corresponding amounts recognised as part of the cost of the related asset. - The cumulative effect of initially applying the amendments as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at that date.

     IFRS 17 – Insurance Contract (Ef IFRS 17 – Insurance Contract (Ef IFRS 17 – Insurance Contract (Ef IFRS 17 – Insurance Contract (Ef IFRS 17 – Insurance Contract (Ef fect fect fect fect fect ive 1 January ive 1 January ive 1 January ive 1 January ive 1 January, 2023) , 2023) , 2023) , 2023) , 2023)

In May 2017, the International Accounting Standards Board (IASB) issued IFRS 17 Insurance Contracts (IFRS 17), a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. Once effective, IFRS 17 will replace IFRS 4 Insurance Contracts (IFRS 4) that was issued in 2005. IFRS 17 applies to all types of insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features.

A few scope exceptions will apply. The overall objective of IFRS 17 is to provide an accounting model for insurance contracts that is more useful and consistent for insurers. In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects. The core of IFRS 17 is the general model, supplemented by:

- A specific adaptation for contracts with direct participation features (the variable fee approach) - A simplified approach (the premium allocation approach) mainly for short-duration contracts)

IFRS 17 is effective for reporting periods beginning on or after 1 January 2023, with comparative figures required. Early application is permitted, provided the entity also applies IFRS 9 and IFRS 15 on or before the date it first applies IFRS 17. Carib Brewery (Grenada) Limited (formerly Grenada Breweries Limited) Notes to the Financial Statements for theyear ended 31st December, 2021 Expr Expr Expr Expr Expressed in t essed in t essed in t essed in t essed in thousands of Eastern Caribbean Dol housands of Eastern Caribbean Dol housands of Eastern Caribbean Dol housands of Eastern Caribbean Dol housands of Eastern Caribbean Dol lars lars lars lars lars

2. Significant Accounting Policies (continued)

(b) Changes in accounting policies and disclosures - continued (ii) Standards in issue not yet effective

The amendments to IFRS 4 – Extension of the Temporary Exemption from applying IFSA 9 cshanges the fixed date for the temporary exemption n IFRS 4 Insurance Contracts from applying IFRS 9 Financial Instruments, so that entities would be required to apply IFRS 9 for annual periods beginning on or after 1 January 2023.

(iii) Improvements to International Reporting Standards The annual improvements process for the International Accounting Standards Board deals with non-urgent but necessary clarifications and amendments to IFRS.

Annual improvements to IFRS Standards 2018-2020 cycle Annual improvements to IFRS Standards 2018-2020 cycle Annual improvements to IFRS Standards 2018-2020 cycle Annual improvements to IFRS Standards 2018-2020 cycle Annual improvements to IFRS Standards 2018-2020 cycle

The following amendments are applicable to annual periods beginning on or after 1 January, 2022

IFRSs – Subject of Amendment IFRSs – Subject of Amendment IFRSs – Subject of Amendment IFRSs – Subject of Amendment IFRSs – Subject of Amendment

IFRS 1 First-time Adoption of International Reporting Standards – Subsidiary as a first-time adopter. IFRS 9 Financial Instruments - Fees in the ’10 per cent’ test for derecognition of financial liabilities. IFRS 16 Leases – Lese incentives IAS 41 Agriculture – Taxation in fair value measurements