FIDELITY BANK : QUARTER 1 - FINANCIAL STATEMENT FOR 2024

`

FIDELITY BANK PLC

CONDENSED UNAUDITED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD ENDED 31 MARCH 2024

Statement Of Directors' Responsibilities In Relation To The Preparation Of The Financial Statements

For the period ended 31 March 2024

In accordance with the provisions of Sections 377 and 378 of the Companies and Allied Matters Act (CAMA) 2020, Banks and Other Financial Institutions Act (BOFIA) 2020, and the Financial Reporting Council Act No. 6, 2011, the Directors are responsible for the preparation of financial statements which give a true and fair view of the state of affairs of the Bank, and of the financial performance for the year . The responsibilities include ensuring that:

1. Appropriate internal controls are established both to safeguard the assets of the Bank and to prevent and detect fraud and other irregularities.
2. The Bank keeps accounting records which disclose with reasonable accuracy the financial position of the Bank and which ensure that the financial statements comply with requirements of International Financial Reporting Standards and the Companies and Allied Matters Act (CAMA) 2020, Banks and Other Financial Institutions Act (BOFIA) 2020, the Financial Reporting Council Act No. 6, 2011, Revised Prudential Guidelines and relevant circulars issued by the Central Bank of Nigeria.
3. The Group has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgments and estimates, and that all applicable accounting standards have been followed; and
4. It is appropriate for the financial statements to be prepared on a going concern basis unless it is presumed that the Bank will not continue in business.

The Directors accept responsibility for the financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates in conformity with International Financial Reporting Standards, the requirements of the Companies and Allied Matters Act, CAP C20 (CAMA ) 2020 , Banks and Other Financial Institutions Act (BOFIA ) 2020 , the Financial Reporting Council Act No. 6, 2011, Revised Prudential Guidelines, and relevant circulars issued by the Central Bank of Nigeria.

The Directors are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Group and its financial performance for the year under review

The Directors further accept responsibility for the maintenance of accounting records that may be relied upon in the preparation of the financial statements, as well as adequate systems of financial control.

Nothing has come to the attention of the Directors to indicate that the Bank and its subsidiary will not remain a going concern from the date of this statement.

Signed on behalf of the Directors by:

Date: April 23 2024

Kevin Ugwuoke	`	Nneka Onyeali-Ikpe
Executive Director		Managing Director/ Chief Executive Officer
FRC/2020/003/00000022290		FRC/2013/NBA/00000016998

2

Statement Of Corporate Responsibility For The Preparation Of The Financial Statements

For the period ended 31 March 2024

In line with the provision of Section 405 of CAMA 2020, the Chief Executive Officer and Chief Financial officer of Fidelity Bank Plc have reviewed the Financial Statements of the bank for the period ended March 31 2024 and accept responsibility for the financial and other information within the report based on the following:

1. The financial statements do not contain any untrue statement of material fact or omit to state a material fact, which would make the statement misleading.
2. The financial statements and all other financial information included in the statements fairly present, in all material respects, the financial condition and result of operation of the bank as of and for the period ended March 31, 2024.

iii

The bank's internal controls were evaluated within 90 days of the financial reporting date and are effective as of 31 March 2024

iv

The bank's internal Controls has been designed to ensure that all material information relating to the bank has been provided.

1. That we have disclosed to the bank's Auditor and the Audit Committee that there are no significant deficiencies in the design or operation of the bank's internal controls which could adversely affect the bank's ability to record, process, summarise and report financial data, and have discussed with the auditors any weaknesses in internal controls observed in the course of the Audit; And that there is no fraud involving management or other employees which could have any significant role in the bank's internal control.
2. There is no significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of this audit, including any corrective actions with regard to any observed deficiencies and material weaknesses.

Signed on behalf of the Directors by:

Date: 23 April 2024

Victor Abejegah		Nneka Onyeali-Ikpe
Chief Financial Officer		Managing Director/Chief Executive Officer
FRC/2013/ICAN/00000001733		FRC/2013/NBA/00000016998

3

Consolidated and Separate Statement of Profit or Loss and Other Comprehensive Income for the period 31 March 2024

Group

Bank

		31 March		31 March	31 March	31 March
		2024	2023	2024	2023
	Notes	N'million		N'million	N'million	N'million
Gross Earnings		192,086	101,141	187,610	101,141
Interest and similar income calculated using effective
interest rate method	6	161,947	86,003	158,112	86,003
Other interest and similar income	12.1	8,191	3,211	8,191	3,211
Interest and similar expense calculated using
effective interest rate method	7	(70,503)		(36,643)	(69,868)	(36,643)
Net interest income		99,634	52,571	96,435	52,571
Credit loss expense	8	(12,365)		(3,521)	(12,174)	(3,521)
Net interest income after credit loss expense		87,269	49,050	84,261	49,050
Fee and commission income	9	18,311	11,901	17,687	11,901
Fee and commission expense	9	(1,938)	(3,776)	(1,938)	(3,776)
Other operating income	11	3,638	26	3,621	26
Net Gains/(Losses) from financial assets at fair value
through profit or loss	12	446	(338)	409	(338)
Personnel expenses	13	(13,999)	(7,885)	(11,196)	(7,885)
Depreciation and amortisation	14	(2,245)	(1,579)	(2,044)	(1,579)
Other operating expenses	15	(51,985)		(29,457)	(50,368)	(29,457)
Profit before income tax		39,497	17,942	40,433	17,942
Income tax expense	16	(8,057)		(2,332)	(8,057)	(2,332)
Profit for the year		31,440	15,609	32,376	15,609
Other comprehensive income:
Items that will not be reclassified subsequently to
profit or loss
Fair value gains on equity instruments at fair value
through other comprehensive income	24.3i	0	0	0	0
Total items that will not be reclassified subsequently
to profit or loss		0	0	0	0
Items that will be reclassified subsequently to profit or loss
-Exchange differences on translation of foreign operations	21,072	-	-	-
- Net change in fair value during the year of FVOCI		-			-
debt financial Instrument		(12,743)	(2,533)	(12,743)	(2,533)
- Changes in allowance for expected credit losses of
FVOCI debt financial Instrument		(516)	16	(516)	16
- Reclassification adjustments to profit or loss of
FVOCI debt financial Instrument	17	(3,404)	773	(3,404)	773

Total items that will be reclassified subsequently to profit or loss

Other comprehensive (loss)/income for the year, net of tax

TOTAL COMPREHENSIVE INCOME FOR THE YEAR,

4,409		(1,743)	(16,663)	(1,743)
4,409		(1,743)	(16,663)	(1,743)

NET OF TAX		35,849	13,866	15,713	13,866
Earnings per share
Basic and diluted (in kobo)	18	98		53.89	101	54

The accompanying notes to the financial statements are an integral part of these consolidated financial statements.

4

Consolidated and Separate Statement of Financial Position

as at 31 March 2024

		Group			Bank
`		31 March	31 December		31 March	31 December
		2024	2023	2024	2023
		N'million	N'million		N'million	N'million
ASSETS	Note
Cash and Cash equivalents	19	480,397	364,177	472,874	376,595
Restricted balances with central bank	20	1,169,457	1,174,398	1,169,457	1,174,398
Loans and advances to customers	22	3,748,218	3,092,419	3,552,434	2,962,397
Derivative financial assets	23	10,723	10,723	10,723	10,723
Investment securities:
Financial assets at fair value through profit or loss	24.1	7,255	7,684	7,255	7,684
Debt instruments at fair value through other
comprehensive income	24.2	99,045	227,750	32,006	187,751
Equity instruments at fair value through other
comprehensive income	24.3i	41,550	41,550	41,550	41,550
Investment in Subsidiary	24.3ii	-	-	68,591	63,403
Debt instrument at amortised cost	24.4	992,344	818,803	992,344	818,803
Deferred tax Assets	28.1	22,554	22,554	22,554	22,554
Other assets	29	378,049	403,763	375,879	402,186
Property, plant and equipment	25	52,764	47,382	52,689	47,329
Right of Use Assets	26	3,623	3,270	1,572	1,677
Goodwill	21	14,650	14,650	-	-
Intangible assets	27	5,862	5,564		5,289	5,123
TOTAL ASSETS		7,026,492	6,234,688	6,805,216	6,122,174
LIABILITIES
Deposits from customers	30	4,706,183	4,014,811	4,508,559	3,926,842
Derivative financial liabilities	23	-	-	-	-
Current income tax payable	16	34,892	26,835	34,892	26,835
Deferred tax liabilities	28.2	22,905	22,905	22,905	22,905
Other liabilities	31	1,050,163	1,152,369	1,046,571	1,133,795
Provision	32	3,928	3,434	3,928	3,434
Debts issued and other borrowed funds	33	741,314	577,028		741,314	577,028
TOTAL LIABILITIES		6,559,386	5,797,381	6,358,169	5,690,839
EQUITY
Share capital	34	16,000	16,000	16,000	16,000
Share premium	35	113,705	113,705	113,705	113,705
Retained earnings	35	96,960	65,508	97,950	65,573
Other equity reserves:
Statutory reserve	35	66,270	66,270	66,282	66,282
Small scale investment reserve (SSI)	35	764	764	764	764
Non-distributable regulatory reserve (NDR)	35	100,279	100,279	100,279	100,279
Translation reserve	35	21,072	6,050	-	-
Fair value reserve	35	37,635	54,310	37,647	54,310
AGSMEIS reserve	35	14,422	14,422		14,422	14,422
Total equity		467,106	437,307	447,048	431,335
TOTAL LIABILITIES AND EQUITY		7,026,492	6,234,688		6,805,217	6,122,174

The accompanying notes to the financial statements are an integral part of these financial statements.

The financial statements were approved by the Board of Directors on 23 April 2024 and signed on its behalf by:

Mustafa Chike-Obi	Nneka Onyeali-Ikpe
Chairman	Managing Director/ Chief Executive Officer
FRC/2013/IODN/00000004048	FRC/2013/NBA/00000016998

Victor Abejegah

Chief Financial Officer

FRC/2013/ICAN/00000001733

5

Consolidated and Separate Statement of Changes in Equity for the period ended 31 March 2024

						Non-
					Small scale	distributable
	Share	Share	Retained	Statutory	investment	regulatory	Translation	Fair value	AGSMEIS		Total
Group	capital	premium	earnings	reserve	reserve	reserve	reserve	reserve	reserve		equity
	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million		N'million
Balance at 1 January 2024	16,000	113,705	65,508	66,270	764	100,279	-	54,310	14,422		437,307
Profit for the period	-	-	31,440	-	-	-	-	-	-		31,440
Other comprehensive income
- Net change in fair value during the year of FVOCI debt financial Instrument	-	-	`	-	-	-	-	(12,743)	-	-	12,743
Fair value gains on equity instruments at fair value through other comprehensive
income	-	-	-	-	-	-	-	-	-		-
- Changes in allowance for expected credit losses of FVOCI debt financial Instrument	-	-	-	-	-	-	-	(516)	-		(516)
-Exchange differences on translation of foreign operations	-	-	-	-	-	-	21,072	-	-		21,072
- Reclassification adjustments to profit or loss of FVOCI debt financial Instrument	-	-	-	-	-	-	-	(3,404)	-		(3,404)
Total comprehensive income for the year	-	-	31,440	-	-	-	21,072	(16,663)	-		35,849
Proceed from Issue of Shares	-	-	-	-	-	-	-	-	-		-
Dividends paid	-	-	-	-	-	-	-	-			-
Transfers between reserves (Note 35) & (Note 43)	-	-	-	-		-	-	-	-		-
At 31 March 2024	16,000	113,705	96,948	66,270	764	100,279	21,072	37,647	14,422		467,106
						Non-
					Small scale	distributable
	Share	Share	Retained	Statutory	investment	regulatory	Translation	Fair value	AGSMEIS		Total
	capital	premium	earnings	reserve	reserve	reserve	reserve	reserve	reserve		equity
	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million		N'million
Balance at 1 January 2023	14,481	101,272	44,883	51,352	764	62,144	-	30,019	9,445		314,360
Profit for the year	-	-	99,454	-	-	-	-	-	-		99,454
Other comprehensive income

• Net change in fair value during the year of FVOCI debt financial Instrument Fair value gains on equity instruments at fair value through other comprehensive income
• Changes in allowance for expected credit losses of FVOCI debt financial Instrument -Exchange differences on translation of foreign operations
• Reclassification adjustments to profit or loss of FVOCI debt financial Instrument
  Total comprehensive income for the year Proceed from Issue of Shares
  Dividends paid

Transfers between reserves (Note 35) & (Note 43)

At 31 December 2023

-	-	`	-	-	-	-	9,035	-	9,035
-	-	-	-	-	-	-	-	-	-
-	-	-	-	-	-	-	13,981	-	13,981
-	-	-	-	-	-	-	428	-	428
-	-	-	-	-	-	-	-	-	-
-	-	-	-	-	-	6,050	-	-	6,050
-	-	-	-	-	-	-	847	-	847
-	-	99,454	-	-	-	6,050	24,291	-	129,795
1,519	12,433	-	-	-	-	-	-	-	13,952
-	-	(20,800)	-	-	-	-	-		(20,800)
-	-	(58,029)	14,918		38,134	-	-	4,977	-
16,000	113,705	65,508	66,270	764	100,279	6,050	54,310	14,422	437,307

The accompanying notes to the financial statements are an integral part of these financial statements.

6

Consolidated and Separate Statement of Changes in Equity for the period ended 31 March 2024

Bank

Balance at 1 January 2024

Profit for the period

Other comprehensive income

- Net change in fair value during the year of FVOCI debt financial Instrument

Fair value gains on equity instruments at fair value through other comprehensive income

• Changes in allowance for expected credit losses of FVOCI debt financial Instrument
• Reclassification adjustments to profit or loss of FVOCI debt financial Instrument
  Total comprehensive income for the year

Proceed from Issue of Shares

Dividends paid

Transfers between reserves (Note 35) & (Note 43)

At 31 March 2024

Balance at 1 January 2023

Profit for the year

Other comprehensive income

Net change in fair value of debt instruments at FVOCI

Net change in fair value of equity instruments at FVOCI

Changes in allowance for expected credit losses

Reclassification adjustment for realised net gains

Total comprehensive income for the year

Dividends paid

Transfers between reserves (Note 35) & (Note 43)

At 31 March 2023

					Non-
				Small scale	distributable
Share	Share	Retained	Statutory	investment	regulatory	Fair value	AGSMEIS	Total
capital	premium	earnings	reserve	reserve	reserve	reserve	reserve	equity
N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million
16,000	113,705	65,573	66,282	764	100,279	54,310	14,422	431,335
-	-	32,376	-	-	-	-	-	32,376
-	-	`	-	-	-	(12,743)	-	- 12,743
-	-	-	-	-	-	-	-	-
-	-	-	-	-	-	(516)	-	(516)
-	-	-	-	-	-	(3,404)	-	(3,404)
-	-	32,376	-	-	-	(16,663)	-	15,713
-	-							-
-	-	-	-	-	-	-		-
-	-	-	-		-		-	-
16,000	113,705	97,950	66,282	764	100,279	37,647	14,422	447,048
					Non-
				Small scale	distributable
Share	Share	Retained	Statutory	investment	regulatory	Fair value	AGSMEIS	Total
capital	premium	earnings	reserve	reserve	reserve	reserve	reserve	equity
N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million	N'million
14,481	101,272	44,883	51,352	764	62,144	30,019	9,445	314,360
-	-	15,609	-	-	-	-	-	15,609
					-	-	-	-
-	-	`	-	-	-	(2,533)	-	(2,533)
-	-	-	-	-	-	-	-	-
-	-	-	-	-	-	16	-	16
-	-	-	-	-	-	773	-	773
-	-	15,609	-	-	-	(1,744)	-	13,865
-	-	-	-	-	-	-		-
-	-	-	-		-	-	-	-
14,481	101,272	60,492	51,352	764	62,144	28,275	9,445	328,225

The accompanying notes to the financial statements are an integral part of these financial statements.

7

Consolidated and Separate Statement of Cash Flows
for the period ended 31 March 2024		Group	Bank
			31		31
		31 March	December	31 March	December
		2024	2023	2024	2023
	Note	N'million	N'million	N'million	N'million
Operating Activities
Cash flows from operations	36	-162,118	382,187	-178,866	404,213
Interest received	36b	89,897	330,193	86,063	327,158
Interest paid	36c	-143,602	(182,311)	(142,967)	(182,341)
Income tax paid	16c	-	(6,277)	-	(6,277)
Net cash flows from operating activities		(215,822)	523,792	(235,770)	542,753
Investing activities
Purchase of property, plant and equipment	25	(8,041)	(9,537)	(8,041)	(9,488)
Proceeds from sale of property plant and equipment	25	330	87	353	85
Purchase of intangible assets	27	(633)	(2,851)	(633)	(2,745)
Purchase of debt Instruments at FVOCI	36.d	-4,860	(173,688)	(4,860)	(221,229)
Purchase of debt Instruments at amortised cost	36.e	-224,619	(647,686)	(224,619)	(647,686)
Redemption of financial assets at amortised cost	36.e	503,695	260,952	503,695	260,952
Redemption of debt financial assets at FVOCI	36.d	88,930	16,824	88,930	16,824
Purchase of equity instruments at FVOCI	36f	-	-	-	-
Acquisition of a subsidairy	36g	-	(40,845)	-	-
Dividend received	11	34	2,018	34	2,018
Net cash flows used in investing activities		354,835	-594,725	354,858	-601,268
Financing activities
Dividends paid	SCE	-	(20,800)	-	(20,800)
Unclaimed dividend Receipt / (Payment)	36h	-	1,960	-	1,960
Lease Payment on Right of Use (ROU) Assets	26	-71	(532)	(71)	(532)
Proceeds of debts issued and other borrowed funds	33	69,977	129,906	69,977	129,906
Payment of interest portion of debts issued and other borrowed
funds	33	-5,127	(4,804)	(5,127)	(4,804)
Repayment of principal portion of debts issued and other
borrowed funds	33	-90,841	(15,051)	(90,841)	-15,051
Net cash flows used in financing activities		(26,063)	90,679	(26,063)	90,679
Net increase in cash and cash equivalents		112,950	19,745	93,026	32,163
Net foreign exchange difference on cash and cash equivalents	11	3,270	44,087	3,253	44,087
Cash and cash equivalents as at 1 January	19	364,177	300,345	376,595	300,345
Cash and cash equivalents as at	19	480,397	364,177	472,874	376,595

The accompanying notes to the financial statements are an integral part of these financial statements.

8

Notes To The Financial Statements:

1. Corporate Information
   These financial statements are for Fidelity Bank Plc (the "Bank"), a company incorporated in Nigeria on 19 November 1987.The registered office address of the Bank is at Fidelity Place, 1 Fidelity Bank Close Off Kofo Abayomi Street, Victoria-Island, Lagos, Nigeria.
   The Bank completed its acquisition of its subsidiary, Fidelity Bank UK Limited (former Union Bank UK Plc) on 26 July 2023. The financial result of the subsidiary has been consolidated into these financial statements.
   The principal activity of the Bank is the provision of banking and other financial services to corporate and individual customers. Fidelity Bank Group provides a full range of financial services including investment, commercial and retail banking.
2. Summary of accounting policies

2.1 Introduction to summary of accounting policies

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to the period presented, unless otherwise stated.

1. Basis of Preparation
   The Group's financial statements for the year ended 31 December 2023 have been prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the International Accounting Standards Board ("IASB") and in the manner required by the Companies and Allied Matters Act of Nigeria , the Financial Reporting Council Act of Nigeria , Banks and Other Financial Institutions Act of Nigeria and relevant Central Bank of Nigeria Circulars, Additional information required by national regulations is included where appropriate.
   The financial statements comprise the statement of profit or loss and other comprehensive income, the statement of financial position, the statement of changes in equity, statement of cashflows, significant accounting policies and the notes to the financial statements.
   The financial statements have been prepared in accordance with the going concern principle under the historical cost convention, except for financial assets and financial liabilities measured at fair value.
   The financial statements are presented in Naira, which is the Group's presentation currency. The figures shown in the financial statements are stated in Naira millions.
2. Changes in accounting policies and disclosures
   New standards, amendments and interpretations adopted.
   The financial statements are prepared in accordance with International Financial Reporting Standards (IFRSs) as issued by the International Accounting Standard Board (IASB) and in the manner required by the Companies and Allied Matters Act of Nigeria, the Financial Reporting Council of Nigeria Act, the Banks and other Financial Institutions Act of Nigeria, and relevant Central Bank of Nigeria circulars. The same accounting policies and methods of computation are followed in the financial statements as compared with the most recent annual financial statements.

The Bank has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

1. IFRS 1 First-time Adoption of International Financial Reporting Standards
   The amendment provides additional relief to a subsidiary which becomes a first-time adopter later than its parent in respect of accounting for cumulative translation differences. As a result of the amendment, a subsidiary that uses the exemption in IFRS 1:D16(a) can now also elect to measure cumulative translation differences for all foreign operations at the carrying amount that would be included in the parent's consolidated financial statements, based on the parent's date of transition to IFRS Accounting Standards, if no adjustments were made for consolidation procedures and for the effects of the business combination in which the parent acquired the subsidiary. A similar election is available to an associate or joint venture that uses the exemption in IFRS 1:D16(a).

9

Notes To The Financial Statements:

2.1.1 Basis of Preparation- continued

b IAS 1 and IFRS Practice Statement 2 (Amendments):

Disclosure of Accounting Policies (effective for annual reporting periods beginning on or after 1 January 2024). The amendments require that an entity discloses its material accounting policies, instead of its significant accounting policies. Further amendments explain how an entity can identify a material accounting policy. Examples of when an accounting policy is likely to be material are added. To support the amendment, the Board has also developed guidance and examples to explain and demonstrate the application of the 'Four-Step Materiality Process'.

The Group is currently assessing the impact of this amendment but considering the fact that the significant accounting policies disclosed in Summary of significant accounting policies" in the Annual Financial Report as at and for the period ended 31 March 2024 include all material accounting policies, The Group assess and applly this amendment (where applicable) and expect to disclose fewer accounting policies in the future.

1. IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures-Supplier Finance Arrangements

The amendments add a disclosure objective to IAS 7 stating that an entity is required to disclose information about its supplier finance arrangements that enables users of financial statements to assess the effects of those arrangements on the entity's liabilities and cash flows. In addition, IFRS 7 was amended to add supplier finance arrangements as an example within the requirements to disclose information about an entity's exposure to concentration of liquidity risk. The term 'supplier finance arrangements' is not defined. Instead, the amendments describe the characteristics of an arrangement for which an entity would be required to provide the information.

To meet the disclosure objective, an entity will be required to disclose in aggregate for its supplier finance arrangements:

• The terms and conditions of the arrangements
• The carrying amount, and associated line items presented in the entity's statement of financial position, of the liabilities that are part of the arrangements
• The carrying amount, and associated line items for which the suppliers have already received payment from the finance providers
• Ranges of payment due dates for both those financial liabilities that are part of a supplier finance arrangement and comparable trade payables that are not part of a supplier finance arrangement
• Liquidity risk information

The amendments, which contain specific transition reliefs for the first annual reporting period in which an entity applies the amendments, are applicable for annual reporting periods beginning on or after 1 January 2024. Earlier application is permitted.

1. IAS 8 (Amendment): Definition of Accounting Estimates
   IAS 8 (Amendment): Definition of Accounting Estimates (effective for annual reporting periods beginning on or after 1 January 2024). The amendment replaces the definition of a change in accounting estimates with a definition of accounting estimates. Under the new definition,
   Accounting estimates are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if accounting policies require items in the financial statements to be measured in a way that involves measurement uncertainty. The amendments clarify that a change in accounting estimate that results from new information or new developments is not the correction of an error. There was no impact on the Financial Statements from the adoption of this amendment.
2. IFRS 9 Financial Instruments
   The amendment clarifies that in applying the '10 per cent' test to assess whether to derecognise a financial liability, an entity includes only fees paid or received between the entity (the borrower) and the lender, including fees paid or received by either the entity or the lender on the other's behalf.

f AS 12 Income Taxes - Deferred Tax

IAS 12 clarifies that the Standard applies to income taxes arising from tax law enacted or substantively enacted to implement, the Pillar Two model rules published by the OECD, including tax law that implements qualified domestic minimum top up taxes described in those rules. The amendments introduce a temporary exception to the accounting requirements for deferred taxes in IAS 12, so that an entity would neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes.

10