3. BASIS OF PREPARATION (continued) 3.4 Use of estimates and judgements (continued) Measurement of fair values (continued) If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement (with Level 3 being the lowest). 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 23 – Financial instruments 3.5 Changes in material accounting policies New accounting standards and amendments The Group has applied the following amendments to SFRS(I)s for the first time for the annual period beginning on 1 January 2024: • Amendments to SFRS(I) 1-1 Classification of Liabilities as Current or Non-current and Amendments to SFRS(I) 1-1 Non-current Liabilities with Covenants • Amendments to SFRS(I) 16 Lease Liability in a Sale and Leaseback • Amendments to SFRS(I) 1-7 and SFRS(I) 7 Supplier Finance Arrangements The application of these amendments to accounting standards does not have a material effect on the financial statements. 4. MATERIAL ACCOUNTING POLICIES The material 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. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired. Any goodwill that arises is tested annually for impairment (see note 4.8). Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities (see note 4.3). The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognised in profit or loss. Notes to the Financial Statements Year ended 31 December 2024 OVERVIEW PERFORMANCE SUSTAINABILITY FINANCIALS APPENDIX 171 ANNUAL REPORT 2024
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