3 BASIS OF PREPARATION (continued) 3.4 Use of estimates and judgements (continued) Measurement of fair values (continued) The Group recognises transfers between levels of the fair value hierarchy as of the end of the reporting period during which the change has occurred. Further information about the assumptions made in measuring fair values is included in the following notes: Note 6 – Investment properties Note 25 – Financial instruments 3.5 Changes in material accounting policies New standards and amendments The Group has applied the following SFRS(I)s and amendments to SFRS(I)s for the first time for the annual period beginning on 1 January 2023: SFRS(I) 17: Insurance Contracts • Amendment to SFRS(I) 1-2: Deferred tax related to Assets and Liabilities arising from a Single Transaction • Amendments to SFRS(I) 1-12: International Tax Reform – Pillar Two Model • Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2: Disclosure of Accounting Policies • Amendments to SFRS(I) 1-8: Definition of Accounting Estimates The application of these standards and amendments to standards does not have a material effect on the financial statements. Material accounting policy information The Group adopted Amendments to SFRS(I) 1-1 and SFRS(I) 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 4 Material accounting policies (2022: Significant accounting policies) in certain instances in line with the amendments. 4 MATERIAL ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements. 4.1 Basis of consolidation (i) Business combinations The Group accounts for business combinations using the acquisition method when the acquired set of activities and assets meets the definition of a business and control is transferred to the Group (see note 4.1(iii)). In determining whether a particular set of activities and assets is a business, the Group assesses whether the set of assets and activities acquired includes, at a minimum, an input and substantive process and whether the acquired set has the ability to produce outputs. The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of whether an acquired set of activities and assets is not a business. The optional concentration test is met if substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets. Notes to the Financial Statements Year ended 31 December 2023 160 PERENNIAL HOLDINGS PRIVATE LIMITED
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