Consolidated Financial Statements 2022 · Page 252

Public Investment Fund and its subsidiaries 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 
(All amounts in million SAR unless otherwise stated) 
Classification: External Confidential 
249 
 
50. NEW OR AMENDED STANDARDS (continued) 
 
50.1 New currently effective standards applied by the Group (continued) 
 
(d) 
Reference to Conceptual Framework -Amendments to IFRS 3 
 
In May 2020, the IASB issued Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework. The amendments 
are intended to replace a reference to the Framework for the Preparation and Presentation of Financial Statements, issued in 1989, with a 
reference to the Conceptual Framework for Financial Reporting issued in March 2018 without significantly changing its requirements. The 
Board also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities 
and contingent liabilities that would be within the scope of IAS 37 or IFRIC 21 Levies, if incurred separately. At the same time, the Board 
decided to clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Framework 
for the Preparation and Presentation of Financial Statements. The amendments are effective for annual reporting periods beginning on or 
after 1 January 2022. There were no contingent assets, liabilities or contingent liabilities within the scope of these amendments that arose 
during the period. 
 
(e) 
IFRS 9 Financial Instruments - Fees in the '10 per cent' test for derecognition of financial liabilities 
 
As part of its 2018-2020 annual improvements to IFRS standards process the IASB issued amendment to IFRS 9. The amendment clarifies 
the fees that an entity includes when assessing whether the terms of a new or modified financial liability are substantially different from the 
terms of the original financial liability. These fees include only those paid or received between the borrower and the lender, including fees 
paid or received by either the borrower or lender on the other’s behalf. An entity applies the amendment to financial liabilities that are 
modified or exchanged on or after the beginning of the annual reporting period in which the entity first applies the amendment.  
 
The amendment is effective for annual reporting periods beginning on or after 1 January 2022 with earlier adoption permitted. There were 
no modifications of the Group’s financial instruments during the period. 
 
(f) 
IAS 41 Agriculture - Taxation in fair value measurements 
 
As part of its 2018-2020 annual improvements to IFRS standards process the IASB issued amendment to IAS 41 Agriculture. The amendment 
removes the requirement in paragraph 22 of IAS 41 that entities exclude cash flows for taxation when measuring the fair value of assets 
within the scope of IAS 41. 
 
An entity applies the amendment prospectively to fair value measurements on or after the beginning of the first annual reporting period 
beginning on or after 1 January 2022 with earlier adoption permitted.  
 
(g) 
IFRS 1 First-time Adoption of International Financial Reporting Standards - Subsidiary as a first-time adopter 
 
The amendment permits a subsidiary that elects to apply paragraph D16 (a) of IFRS 1 to measure cumulative translation differences using 
the amounts reported in the parent’s consolidated financial statements, based on the parent’s date of transition to IFRS, i