Ntegrator International Ltd. - Annual Report 2020

97 NOTES TO THE FINANCIAL STATEMENTS For the financial year ended 31 December 2020 27. New or revised accounting standards and interpretations (continued) Description Effective for annual periods beginning on or after Amendments to SFRS(I) 3: Reference to the Conceptual Framework 1 Jan 2022 Amendments to SFRS(I) 1-16: Property, Plant and Equipment —Proceeds before Intended Use 1 Jan 2022 Amendments to SFRS(I) 1-37: Onerous Contracts —Cost of Fulfilling a Contract 1 Jan 2022 Annual Improvements to SFRS(I)s 2018-2020 1 Jan 2022 SFRS (I) 17 Insurance Contracts 1 Jan 2023 Amendments to SFRS(I) 17 1 Jan 2023 Amendments to SFRS(I) 1-1: Classification of Liabilities as Current or Non-current 1 Jan 2023 Amendments to SFRS(I) 10 and SFRS(I) 1-28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture To be determined • Amendments to SFRS(I) 1-1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (effective for annual periods beginning on or after 1 January 2023) The narrow-scope amendments to SFRS(I) 1-1 Presentation of Financial Statements clarify that liabilities are classified as either current or non-current, depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date (e.g. the receipt of a waver or a breach of covenant). The amendments also clarify what SFRS(I) 1-1 means when it refers to the ‘settlement’ of a liability. The amendments could affect the classification of liabilities, particularly for entities that previously considered management’s intentions to determine classification and for some liabilities that can be converted into equity. The Group does not expect any significant impact arising from applying these amendments. • Amendments to SFRS(I) 1-16 Property, Plant and Equipment: Proceeds before Intended Use (effective for annual periods beginning on or after 1 January 2022) The amendment to SFRS(I) 1-16 Property, Plant and Equipment (PP&E) prohibits an entity from deducting from the cost of an item of PP&E any proceeds received from selling items produced while the entity is preparing the asset for its intended use. It also clarifies that an entity is ‘testing whether the asset is functioning properly’ when it assesses the technical and physical performance of the asset. The financial performance of the asset is not relevant to this assessment. Entities must disclose separately the amounts of proceeds and costs relating to items produced that are not an output of the entity’s ordinary activities. The Group does not expect any significant impact arising from applying these amendments. • Amendments to SFRS(I) 1-37 Provisions, Contingent Liabilities and Contingent Assets: Onerous Contracts – Cost of Fulfilling a Contract (effective for annual periods beginning on or after 1 January 2022) An onerous contract is a contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it. The unavoidable costs under a contract reflect the least net cost of exiting from the contract, which is the lower of the costs of fulfilling it and any compensation or penalties arising from failure to fulfil it. The amendment to SFRS(I) 1-37 clarifies that the direct costs of fulfilling a contract include both the incremental costs of fulfilling the contract and an allocation of other costs directly related to fulfilling contracts. The Group does not expect any significant impact arising from applying these amendments. 28. Event occurring after reporting date On 26 Feb 2021, the Company secured a supplemental contract from repeat customer worth S$6.1 million in relation to a supply contract that commenced in April 2019. 29. Authorisation of financial statements These financial statements were authorised for issue in accordance with a resolution of the Board of Directors of Ntegrator International Ltd. on 6 April 2021.