ANNUAL REPORT 2021

61 9 - If the IBOR reform results in changes to an entity’s risk management strategy, a description of these changes and how the entity is managing these risks. d) The IASB alsoamended IFRS 4 to require insurers thatapply thetemporary exemption from IFRS9 to applytheamendments whenaccounting for modifications directly required by the IBOR reform. - Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture issued by the IASB on 11 September 2014. The amendments address a conflict between the requirements of IAS 28 and IFRS 10 and clarify that, in a transaction involving an associate or joint venture, the extent of the gain or loss recognition depends on whether the assets sold or contributed constitute a business. - Amendments to IFRS 16 “Leases” - Covid - 19 - Related RentConcessions issued bythe IASB on 28 May2020. The amendments exempt lesseesfrom having to consider individual lease contracts to determine whether rent concessions occurring as a direct consequence of the Covid - 19 pandemic are lease modifications and allow lessees to account for such rent concessions as if they were not lease modifications. This applies to Covid - 19 - related rent concessions that reduce lease payments due on or before 30 June 2021. - Amendments to IFRS 16 “Leases” - Covid - 19 - Related Rent Concessions beyond 30 June 2021 issued by the IASB on 31 March 2021. The amendments extend by one year the application period ofthe practical expedient in IFRS 16. The relief was extended by one yearto cover rent concessions that only reduce lease payments due on or before 30 June 2022. - Amendmentsto IFRS17 “Insurance Contracts” - InitialApplicationofIFRS17and IFRS9 - ComparativeInformationissuedbytheIASBon9 December 2021. This is a narrow - scope amendment to the transition requirements of IFRS 17 for entities that first apply IFRS 17 and IFRS 9 at the same time. - Amendments to IAS 1 “Presentation of Financial Statements” - Classification of Liabilities as Current or Non - current issued by the IASB on 23 January 2020. The amendments provide a more general approach to the classification of liabilities under IAS 1 based on the contractual arrangements in placeat the reporting date.Amendmentsto IAS 1 issued bythe IASB on 15July2020 deferthe effective date by one yeartoannual periods beginning on or after 1 January 2023. - Amendments to IAS 1 “Presentation of Financial Statements” - Disclosure of Accounting Policies issued by the IASB on 12 February 2021. The amendmentsrequireentitiestodisclosetheirmaterialaccounting policiesratherthantheirsignificantaccounting policiesandprovideguidance and examples to help preparers when deciding which accounting policies to disclose in their financial statements. - Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors” - Definition of Accounting Estimates issued by the IASB on 12 February 2021. The amendments focus on accounting estimates and provide guidance on how to distinguish between accounting policies and accounting estimates. - Amendmentsto IAS 12 “IncomeTaxes” - DeferredTaxrelatedtoAssetsandLiabilitiesarising froma SingleTransaction issued bythe IASBon6 May 2021. According to the amendments, the initial recognition exemption does not apply to transactions in which both deductible and taxable temporary differences arise on initial recognition that result in the recognition of equal deferred tax assets and liabilities. - Amendments to IAS 16 “Property, Plant and Equipment” - Proceeds before Intended Use issued by the IASB on 14 May 2020. The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in themanner intended by management. Instead, an entity recognises the proceeds from selling such items, and the cost of producing these items, in profit or loss. - Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” - Onerous Contracts - Cost of Fulfilling a Contract issued by the IASB on 14 May 2020. The amendments specify that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract are either the incremental costs of fulfilling that contract, or an allocation of other costs that relate directly to fulfilling contracts. Amendments to various standards due to “Annual Improvements to IFRS Standards (2018 - 2020 Cycle)” issued by the IASB on 14 May 2020. Amendments to various standards resulting from the annual improvement project of IFRS (IFRS 1, IFRS 9, IFRS 16 and IAS 41) primarily with a view to removing inconsistencies and clarifying wording. The amendments: (a) clarify that a subsidiary which applies paragraph D16(a) of IFRS 1 is permitted tomeasure cumulative translation differences using the amounts reported by its parent, based on the parent’s date oftransition to IFRSs(IFRS 1);(b) clarify which fees an entity includes when it applies the ‘10 per cent’ test in paragraph B3.3.6 of IFRS 9 when assessing whether to derecognise a financial liability. An entity only includes fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other’s behalf (IFRS 9); (c) remove from the example the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that could arise due to how lease incentives are illustrated in this example (Illustrative Example 13 accompanying IFRS 16); and (d) remove the requirement in paragraph 22 of IAS 41 for entities to exclude taxation cash flows whenmeasuring the fair value of a biological asset using a present value technique (IAS 41). 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Statement of compliance The consolidated financial statements have been prepared in accordance with IFRS as adopted by the EU and on the going concern assumption. IFRS as adopted by the EU do not currently differ from IFRS as issued by the IASB, except for certain standards and interpretations that have not been endorsed by the EU as described above. (b) Basis of preparation of the consolidated financial statements The consolidated financial statements are prepared under the historical cost convention, except for certain financial instruments and business combinations under IFRS 3 “Business Combinations”. The principal accounting policies adopted are set out below. The accompanying consolidated financial statements reflect certain adjustments and reclassifications not recorded in the accounting records of the Group companies in order to conform the Slovak statutory and other financial statements to financial statements prepared in accordance with IFRS as adopted by the EU. The reporting currency is the euro. The data in the consolidated financial statements are reported in euros unless otherwise stated. The accounting policies have been consistently applied by the Group and are consistent with those of the previous year. The preparation of the financial statements in conformity with IFRS requires the use of certain accounting estimates. It also requires management to exercise its judgment in the process of applying the accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 4. The consolidated financial statements were prepared under the assumption that the Group will continue as a going concern. (c) Basis of consolidation (i) Subsidiaries The consolidatedfinancial statements incorporate the financial statements of controlled reporting entities (“subsidiaries”). The control arises ifthe reporting entity: NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (IN EUROS)