Consolidated Financial Statements 2022 · Page 251

Public Investment Fund and its subsidiaries 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 
(All amounts in million SAR unless otherwise stated) 
Classification: External Confidential 
248 
 
49. COVID IMPACT 
 
The economy has successfully bounced back from the effects of COVID-19, with strong GDP growth estimates for both this year and next 
year. On 5 May 2023, the World Health Organization (WHO) has declared that Covid-19 no longer represents a "global health emergency". 
While the economy displays a healthy level of growth and activity, the group will continue to closely monitor economic indicators regularly. 
 
50. NEW OR AMENDED STANDARDS  
 
The new and amended standards and interpretations, as endorsed in the Kingdom, that are issued up to the date of issuance of the Group’s 
consolidated financial statements are disclosed below and divided into newly currently effective standards, interpretations and amendments 
applied by the Group (note 50.1) and new standards, interpretations and amendments issued but not yet effective (note 50.2).  
 
50.1 New currently effective standards applied by the Group  
 
This note lists the recent changes to the accounting standards that are required to be applied by the Group. The Group has applied for the 
first time the following IASB pronouncement, as endorsed in the Kingdom, effective for annual periods beginning on or after January 1, 2022. 
These amendments had no material impact on the consolidated financial statements of the Group as at the reporting date. 
 
(a) 
Covid-19-Related Rent Concessions beyond 30 June 2021 – Amendments to IFRS 16 
 
In March 2021, the Board amended the conditions of the practical expedient in IFRS 16 that provides relief to lessees from applying the IFRS 
16 guidance on lease modifications to rent concessions arising as a direct consequence of the covid-19 pandemic.   
 
As a practical expedient, a lessee may elect not to assess whether a covid-19 related rent concession from a lessor is a lease modification. A 
lessee that makes this election accounts for any change in lease payments resulting from the covid-19 related rent concession the same way 
it would account for the change under IFRS 16, if the change were not a lease modification.   
 
Following the amendment, the practical expedient now applies to rent concessions for which any reduction in lease payments affects only 
payments originally due on or before 30 June 2022, provided the other conditions for applying the practical expedient are met. The 
amendment applies to annual reporting periods beginning on or after 1 April 2021. 
 
(b) 
Onerous contracts – Cost of Fulfilling a Contract -Amendments to IAS 37 
 
The amendments specify which costs an entity includes in determining the cost of fulfilling a contract for the purpose of assessing whether 
the contract is onerous. The amendments apply for annual reporting periods beginning on or after 1 January 2022 to contracts existing at 
the date when the amendments are first applied. At the date of initial application, the cumulative effect of applying the amendments is 
recognized as an opening balance adjustment to retained earnings or other components of equity, as appropriate. The comparatives are not 
restated. There is no impact as the Group already applies the ‘full cost’ approach. 
 
(c) 
Property, Plant and Equipment: Proceeds before Intended Use -Amendments to IAS 16 
 
In May 2020, the IASB issued Property, Plant and Equipment — Proc