New Standards, Amendments and Interpretations applicable as of January 1, 2023

The Company has adopted the following new standards as of January 1, 2023:

• IFRS 17 – ‘Insurance Contracts’;
• Amendments to IAS 8 – ‘Definition of Accounting Estimates’;
• Amendments to IAS 1 and IFRS Practice Statement 2 – Disclosure of Accounting Policies’;
• Amendments to IAS 12 – ‘Deferred Tax related to Assets and Liabilities arising from a Single Transaction’; and
• Amendments to IAS 12 – ‘International Tax Reform – Pillar Two Model Rules’.

IFRS 17 Insurance Contracts

IFRS 17 is the new accounting standard for insurance contracts covering recognition and measurement, presentation, and disclosure. This standard applies to all types of insurance contracts, regardless of the type of entities that issue them, as well as to certain guarantees and financial instruments with discretionary participation features.

In contrast to the requirements in IFRS 4, which are largely based on grandfathering previous local accounting policies, IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects.

The Company has made a thorough assessment of its transactions against the scope of IFRS 17 and concluded that, despite the fact it does have some transactions that may fall within the scope of IFRS 17, those transactions are either scoped out (such as warranties provided to its customers) or an accounting policy choice is available (e.g., fixed-fee service contracts). The Company has decided to apply the accounting policy option to not apply IFRS 17 where permitted.

Therefore, this new standard had no impact on the consolidated financial statements of the Company.

Definition of Accounting Estimates – Amendments to IAS 8

This amendment clarifies the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors in IAS 8. They also clarify how entities use measurement techniques and inputs to develop accounting estimates.

The amendment had no impact on the consolidated financial statements of the Company.

Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2

These amendments provide guidance and examples to help entities applying materiality judgements to accounting policy disclosures. The amendments aim to help entities provide accounting policy disclosures that are more useful, by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments had a minor impact on the consolidated financial statements of the Company. The Company has performed a reassessment of its accounting policy disclosures against the amended guidance, which resulted in minor changes to the section on accounting policies.

Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

This amendment aims to narrow the scope of the initial recognition exception (’IRE’) provided in IAS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences, such as leases and decommissioning liabilities.

The impact of the application of this amendment to IAS 12 relates to lease transactions in which the Company is the lessee, and for which the Company applied the initial recognition exemption.

This amendment resulted in the recognition of additional deferred tax assets and deferred tax liabilities on the balance sheet at January 1, 2023, of US$11 million and US$10 million respectively, with an insignificant net impact of less than US$1 million. Considering the materiality, the Company has recognized the impact fully in 2023.

Amendments to IAS 12 – ‘International Tax Reform – Pillar Two Model Rules’

With regards to the amendments to IAS 12 on International Tax Reform – Pillar Two Model Rules the amendment:

• Provide a mandatory temporary exception to the requirements in IAS 12 to recognize and disclose information about deferred tax assets and liabilities arising from Pillar Two Model Rules.

The Company has been monitoring the accounting discussion around the recognition of deferred taxes arising from Pillar Two Model Rules and, following the amendment requirements, the Company did not recognize any deferred taxes in its financial statements 2023 related to potential impacts of top-up taxes arising from such legislation. The mandatory temporary exception applies immediately.

• Introduce new disclosure requirements, which are only applicable to annual financial statements commencing on or after January 1, 2023.

As the Company is within the scope of the Pillar Two legislation, the Company is in the process of assessing the applicable regulations and understanding the requirements. The EU has published the Directive (EU) 2022/2523, in the Official Journal of the EU, on December 22, 2022, aiming to ensure a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the EU, based on a system of two interlocked rules, together referred to also as the ‘GloBE rules’, through which an additional amount of tax (so-called ‘Top-up Tax’) should be collected when the effective tax rate in a given jurisdiction is below 15%. Following the EU Directive, the Dutch government issued its draft proposal of the Minimum Taxation Act 2024 in October 2022 for consultation, while on December 15, 2022, the Council of the European Union formally adopted the directive implementing the minimum taxation at EU level. On December 19, 2023 the Dutch Senate approved the Minimum Tax Act 2024. The measures are considered to be substantively enacted for financial statements ending after 19 December 2023. The main rule of the Minimum Tax Act 2024 (so-called Income Inclusion Rule or IIR) will become effective on or after December 31, 2023 with the backstop rule (so-called Undertaxed Profits Rule or UTPR) becoming effective on or after December 31, 2024. On top of the IIR and UTPR, the jurisdictions that will implement an IIR are generally expected to also implement a Qualifying Domestic Minimum Top-up Tax or QDMTT.

The Company will be impacted by the GloBE rules, the result of the assessment of the expected impact is disclosed under 4.3.10 Income Tax Expense as per requirements of the issued IAS 12 amendment.