Notes tothe financial statements For the financial year ended 31 December 2023 2. Summary of material accounting policies information (cont’d) 2.2 Changes in accounting policies and disclosures (cont’d) Amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2: Disclosure of Accounting Policies The amendments to SFRS(I) 1-1 and SFRS(I) Practice Statement 2 provide guidance and examples to help entities apply materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their “significant” accounting policies with a requirement to disclose their “material” accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The Group has applied the materiality guidance in SFRS(I) Practice Statement 2 in identifying its material accounting policies for disclosures in the related notes. The previous term “significant accounting policies” used throughout the financial statements has been replaced with “material accounting policies information”. Amendments to SFRS(I) 1-12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction The amendments in SFRS(I) 1-12 narrow the scope of the initial recognition exemption, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases and decommissioning obligations. The deferred tax asset and deferred tax liability for the deductible and taxable temporary differences in relation to its lease liabilities and right-of-use assets are included under advances and property, plant and equipment respectively in Note 18. The amendments have no impact on the Group’s balance sheets as the resulting deferred tax assets and liabilities qualify for offsetting under SFRS(I) 1-12. Amendments to SFRS(I) 1-12: International Tax Reform – Pillar Two Model Rules The amendments to SFRS(I) 1-12 have been introduced in response to the Organisation for Economic Cooperation and Development’s (“OECD”) BEPS Pillar Two rules and include: • A mandatory temporary exception to the recognition and disclosure of deferred taxes arising from the jurisdictional implementation of the Pillar Two model rules; and; • Disclosure requirements for affected entities to help users of the financial statements better understand an entity’s exposure to Pillar Two income taxes arising from that legislation, particularly before its effective date. The Group is in scope of the Pillar Two model rules as its consolidated annual revenue is more than EUR 750 million (approximately Rp12.7 trillion). As of 31 December 2023, the Pillar Two income taxes legislation has not yet been enacted or substantively enacted in Singapore and in Indonesia. The Group is still in the process of assessing the potential exposure to Pillar Two income taxes. The potential exposure, if any, to Pillar Two income taxes is currently not known or reasonably estimable. 71 GROUP OVERVIEW OPERATION AND FINANCIAL REVIEW SUSTAINABILITY & GOVERNANCE FINANCIALS OTHER INFORMATION Annual Report 2023
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