Investor Presentaiton
En+
GROUP
FINANCIAL STATEMENTS
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
En+ Group Annual Report 2021
EN+ GROUP IPJSC
Notes to the Consolidated Financial Statements
for the year ended 31 December 2021
STRATEGIC REPORT
CORPORATE GOVERNANCE
2.
Basis of preparation
(a)
(b)
Statement of compliance
These consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards ("IFRSS"), which collective term includes all International Accounting Standards and
related interpretations promulgated by the International Accounting Standards Board ("IASB").
Preparation of these consolidated financial statements is also regulated by Russian Federal Law 208-FZ dated
27 July 2010 On Consolidated Financial Statements in all aspects, except for language and functional and
presentation currencies, which are regulated by Russian Federal Law 290-FZ dated 3 August 2018
On International Companies and International Funds.
The Group has not early adopted any standard, interpretation or amendment that has been issued but is not
yet effective. The following amended standards became effective from 1 January 2021: Interest Rate
Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16.
The amendments provide temporary reliefs which address the financial reporting effects related to
replacement of interbank offered rates (IBOR) with alternative risk-free rates (RFR). These amendments had
no impact on the consolidated interim condensed financial information of the Group. The Group intends to
use the practical expedients in future periods if they become applicable.
Standards issued but not effective
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of
issuance of the Group's financial statements are disclosed below. The Group intends to adopt these new and
amended standards and interpretations, if applicable, when they become effective.
•
(c) Basis of measurement
(d)
The consolidated financial statements have been prepared in accordance with the historical cost basis except
as set out in the significant accounting policies in notes 11 and 19.
Functional and presentation currency
The functional currencies of the Parent Company and Group's significant subsidiaries are the currencies of
the primary economic environment and key business processes of these subsidiaries and include USD,
Russian roubles ("RUB"), Ukrainian hryvna and euros ("EUR"). The consolidated financial statements are
presented in USD, rounded to the nearest million, except as otherwise stated herein.
The functional currencies of investments in associates and joint ventures are RUB, Kazakhstani tenge and
Australian dollar.
(e) Use of judgements, estimates and assumptions
The preparation of consolidated financial statements in conformity with IFRSS requires management to make
judgements, estimates and assumptions that affect the application of accounting policies and reported
amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the consolidated
financial statements, and the reported revenue and costs during the relevant period.
Management bases its judgements and estimates on historical experience and various other factors that are
believed to be appropriate and reasonable under the circumstances, the results of which form the basis of
making the judgements about carrying values of assets and liabilities that are not readily apparent from other
sources. Actual results may differ from these estimates under different assumptions and conditions.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period,
or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements made by management in the application of IFRSS that have a significant effect on the
consolidated financial statements and estimates with a significant risk of material adjustment in the next year
are discussed in note 25.
IFRS 17 Insurance Contracts;
•
Reference to the Conceptual Framework - Amendments to IFRS 3;
•
Property, Plant and Equipment: Proceeds before Intended Use - Amendments to IAS 16;
●
Onerous Contracts - Costs of Fulfilling a Contract - Amendments to IAS 37;
•
IFRS 1 First-time Adoption of International Financial Reporting Standards
first-time adopter;
Subsidiary as a
3.
Significant accounting policies
•
Definition of Accounting Estimates - Amendments to IAS 8;
•
IFRS 9 Financial Instruments
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Fees in the '10 per cent' test for derecognition of financial liabilities;
•
Disclosure of Accounting Policies - Amendments to IAS 1 and IFRS Practice Statement 2.
Significant accounting policies are described in the related notes to the consolidated financial statements
captions and in this note.
The accounting policies and judgements applied by the Group in these consolidated financial statements are
the same as those applied by the Group in its consolidated financial statements as at and for the
31 December 2020.
year ended
152
These amendments are not expected to have a material impact on the Group.
Amendments to IAS 1: Classification of Liabilities as Current or Non-current
In January 2020, the IASB issued amendments to paragraphs 69 to 76 of IAS 1 to specify the requirements
for classifying liabilities as current or non-current. The amendments clarify:
(a)
Basis of consolidation
(i)
Subsidiaries and non-controlling interests
FINANCIAL STATEMENTS
Appendices
•
What is meant by a right to defer settlement;
•
That a right to defer must exist at the end of the reporting period;
•
That classification is unaffected by the likelihood that an entity will exercise its deferral right;
•
That only if an embedded derivative in a convertible liability is itself an equity instrument would the
terms of a liability not impact its classification.
The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and must
be applied retrospectively. The Group is currently assessing the impact the amendments will have on current
practice.
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns
through its power over the entity. When assessing control, potential voting rights that presently are
exercisable are taken into account.
The consolidated financial statements of subsidiaries are included in the consolidated financial statements
from the date that control commences until the date that control ceases. The accounting policies of
subsidiaries have been changed when necessary to align them with the policies adopted by the Group.
Non-controlling interests represent the portion of the net assets of subsidiaries attributable to interests that are
not owned by the Group, whether directly or indirectly through subsidiaries, and in respect of which the Group
has not agreed any additional terms with the holders of those interests which would result in the Group as a whole
having a contractual obligation in respect of those interests that meets the definition of a financial liability.
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