FINANCIAL REVIEW

CHANGES IN ACCOUNTING POLICIES

The financial accounting standards applied comply with the Statement of Accounting Standards (PSAK) and Interpretation of Financial Accounting Standards (ISAK) applicable in the current year.

The Group applied all new and/or revised standards that became effective for the period beginning on or after January 1, 2021, including the following revised standards that affected the Group’s consolidated financial statements:

Amendment to Statement of Financial Accounting Standards (“PSAK”) 22: Definition of Business

Amendments to PSAK 22 Business Combinations clarified that to be considered a business, an integrated set of activities and assets must include, at a minimum, substantive inputs and processes that, together, contribute significantly to the ability to generate outputs. In addition, this Amendment clarifies that a business still exists even though it does not cover all the inputs and processes required to produce outputs.

This amendment has no impact on the Group’s consolidated financial statements, but may have an impact in future periods if the Group enters into a business combination.

Amendments to PSAK 55, PSAK 60, PSAK 62, PSAK 71 and PSAK 73 - Reform of Benchmark Interest Rates (Phase 2)

These amendments provide temporary relief concerning the impact of financial reporting when the Interbank Offered Rate is replaced with an almost risk-free alternative reference rate (SBB). This amendment includes the following practical means:

1. A practical way for contractual changes, or changes in cash flows that are directly required by the benchmark interest rate, to be treated as changes in floating interest rates, which are equivalent to movements in market interest rates;
2. Allows changes required by benchmark interest rate reforms to hedge designation and documentation without terminating the hedging relationship; and
3. Provides temporary leeway for entities to comply with separately identifiable requirements, when the SBB instrument is designated as a hedge of a risk component.

This amendment has no impact on the Group’s consolidated financial statements. The Group intends to use practical methods in future periods if applicable.

Amendment to PSAK 73: Leases - Lease Concessions - Regarding COVID-19 After June 30, 2021

Due to the ongoing pandemic, an additional Amendment was issued in March 2021 that extends the scope of the lease