Annual Report 2022

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2022 51 The United Laboratories International Holdings Limited Annual Report 2022 2. APPLICATION OF AMENDMENTS TO HONG KONG FINANCIAL REPORTING STANDARDS (“HKFRSs”) (Continued) Amendments to HKFRSs that are mandatorily effective for the current year (Continued) 2.1 Impacts on application of Amendments to HKFRSs Annual Improvements to HKFRSs 2018-2020 The Group has applied the amendments for the first time in the current year. The annual improvements make amendments to the following standards: HKFRS 9 Financial Instruments The amendment clarifies that for the purpose of assessing whether modification of terms of original financial liability constitutes substantial modification under the “10 per cent” test, a borrower includes only fees paid or received between the borrower and the lender, including fees paid or received by either the borrower or the lender on the other’s behalf. In accordance with the transitional provisions, the Group applies the amendment to financial liabilities that are modified or exchanged as at the date of initial application, 1 January 2022. HKFRS 16 Leases The amendment to Illustrative Example 13 accompanying HKFRS 16 removes from the example the illustration of reimbursement relating to leasehold improvements by the lessor in order to remove any potential confusion. The application of the amendments in the current year has had no impact on the Group’s consolidated financial statements.