ECIC IR 2023

ANNUAL Financial Statements for the year ended 31 March 2023

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Accounting Policies

c The earnings profile in the earlier years of the project tend to be higher under IFRS 17 than what it was under IFSR 4. This will result in an increase in equity when transitioning to IFRS 17. c The carrying values of the insurance liabilities will be calculated net of premiums; this will result in a reduction of both total assets and total liabilities. This will introduce volatility in the total assets and total liabilities on receipt of premiums: o Under IFRS 4 future premiums are booked as premium receivable asset. When received, it simply moves from one asset to another (i.e., from premium receivable to cash). o Under IFRS 17 future premiums are part of the fulfilment cash flows which are used to calculate the insurance liability. When premiums are received, they moves out of liabilities to assets (i.e., insurance liability increase and cash increase). (ii) IAS 1, Presentation of Financial Statements. The following amendments were made: c Classification of Liabilities as current or Non‑current. Narrow scope amendments to the accounting standard to clarify how debts and other liabilities are classified based on the contractual arrangements in place at the reporting date. The amendments were originally effective for annual reporting periods beginning on or after 1 January 2022, however, their effective date has been delayed to 1 January 2023. c Disclosure of Accounting Policies. The amendments require companies to disclose their material accounting policy information rather than their significant accounting policies, with additional guidance added to the Standard to explain how an entity can identify material accounting policy information with examples of when accounting policy information is likely to be material. The amendments are effective for annual periods beginning on or after 1 January 2023. ECIC will apply the amendments from the effective date and the amendments are not expected to significantly impact the Corporation. The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates, by replacing the definition of a change in accounting estimates with a new definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. The requirements for recognising the effect of change in accounting prospectively remain unchanged. The amendments are effective for annual periods beginning on or after 1 January 2023, ECIC will apply the amendments from the effective date and the amendments are not expected to significantly impact the Corporation. (iv) IAS 12, Deferred tax‑ Deferred Tax related to Assets and Liabilities arising from a Single Transaction. The amendments require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. The amendments are effective for annual reporting periods beginning on or after 1 January 2023. ECIC will apply the amendments from the effective date and the amendments are expected to have an impact on the deferred tax asset and liability for the leased assets. In the overall financial statements the amendment is not expected to significantly impact the Corporation. (c) New standards, amendments and interpretations issued and effective for the current financial year but not implemented by the Corporation. (i) IFRS 9, Financial instruments. It is expected that IFRS 9 will change the classification of financial assets to either amortised cost, fair value through profit or loss or fair value through other comprehensive income. In addition, IFRS 9 replaces the ‘incurred loss’ model in IAS 39 with an ‘expected credit loss’ model, which means that a loss event will no longer need to occur before an impairment allowance is recognised. (iii) IAS 8, Accounting policies, Changes in Accounting Estimates and Errors. Amendment to the Definition of Accounting Estimates.

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