Page 226 - BTSGroup ONE REPORT 2021/22_EN

224 l Introduction l Nature of Business l Organisation and Shareholding Structure l Business Review l Corporate Governance l Financial Statements l Other Information l

The adoption of these financial reporting standards does not have any were aimed at alignment with the corresponding International Financial
significant impact on the Group’s financial statements. Reporting Standards with most of the changes directed towards clarifying
accounting treatment and, for some standards, providing temporary
However, the Group has adopted the temporary exemptions from reliefs or temporary exemptions for users.
applying specific hedge accounting requirements in accordance with
TFRS 9 Financial Instruments and TFRS 7 Disclosure of Financial The management of the Group is currently evaluating the impact of
Instruments, which apply to all hedging relationships directly affected by these standards on the financial statements in the year when they
interest rate benchmark reform. Consequently, the Group can continue are adopted.
to apply hedge accounting for those hedging relationships in the period
when there is uncertainty about the timing or the amount of interest 4. Signif cant accounting policies
rate benchmark-based cash flows of the hedged item or of the 4.1 Revenue and expense recognition
hedging instrument.
Service income
The adoption of these temporary exemptions does not have any Revenues from provision of operating services
significant impact on the Group’s financial statements.
Income from providing of operating services is recognised over time when
services have been rendered taking into account the stage of completion.
Furthermore, the Group elected to adopt the amendments to TFRS 16 Service rate charged is in accordance with rates as stipulated in
Leases relating to COVID-19 related rent concessions. the contract.
These amendments provide a practical expedient that permits a lessee
to not assess whether rent concessions are lease modifications. Advertising income
The practical expedient applies only to rent concessions occurring as a
direct consequence of the COVID-19 pandemic and only if all of the Advertising income is recognised over time of services have been
conditions are met, i.e., the change in lease payments results in a rendered taking into account the stage of completion. Service rate
revised consideration for the lease that is substantially the same as, charged is in accordance with service area, service rate charged per
or less than, the consideration for the lease preceding the change; area and service period stipulated in the contract.
any reduction in lease payments affects only payments originally due on
or before 30 June 2022; and there is no substantive change to other Revenue from advertising production is recognised upon completion of
terms and conditions of the lease. service in cases where control of the assets created has not yet been
transferred to the customers.
3.2 Financial reporting standards that will become effective
for f scal years beginning on or after 1 January 2022 The recognised revenue which is not yet due per the contracts has been
The Federation of Accounting Professions issued a number of revised presented under the caption of “Accrued income” in the statement
financial reporting standards, which are effective for fiscal years of financial position. The amounts recognised as contract assets are
beginning on or after 1 January 2022. These financial reporting standards reclassified to trade receivables when the Group’s right to consideration
is unconditional such as upon issue invoice to the customers.