Audited financial statement for the year ended 31 july 2024

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31, JULY 2024

1. Corporate Information 1

2. Results at a glance 2

3. Report of the directors 3-5

4. Statement of directors' responsibilities 6

5. Statement of corporate responsibility for financial statements 7

6. Statutory audit committee report 8

7. Statement on internal controls over financial reporting 9-10

8. Reports of the independent auditors 11-13

9. Statement of financial position 14

10. Statement of profit or loss and other

    comprehensive income 15

11. Statement of changes in equity 16

12. Statement of cashflow 17

13. Notes to the financial statements 18-49

14. Statement of value added 50

15. Other national disclosures 51

1. Ms. Aisha Abdulaziz Chief Executive Officer

2. Mr. Bruce Brai Ayonote Non-Executive Director

3. Mr. Suleiman Muhammad Arzika Non-Executive Director

4. Mr. Ehianeta Mondritz Ebhohimhen Non-Executive Director

5. Mr. Ayodele Olubunmi Arogbo Non-Executive Director

6. Mr. Mohammed Yamani Shema Independent Director

7. Ms. Ifeyinwa Georgina Umunnakwe Independent Director

Off Adetokunbo Ademola Crescent, Wuse II,

Abuja, FCT, Nigeria.

(CHARTERED ACCOUNTANTS)

2nd Floor 9, Alhaja Kofoworola Crescent, Balogun Bus Stop, off Awolowo way, Ikeja, Lagos.

08091639500, 09050743880, 08167036750

info@pps-chartered.com https://www.pps-chartered.com

Off Adetokunbo Ademola Crescent, Wuse II,

Abuja, FCT, Nigeria.

SunTrust Bank FCMB

LEGEND INTERNET PLC

Audited financial statements For the year ended 31 July 2024

1. ACCOUNTS

   The directors submit their report for the year ended 31 July, 2024 which discloses the state of affairs of the company.

2. LEGAL FORM

   The company was incorporated on the 17th day of August, 2021 under the Companies and Allied Matters Act, as a private limited liability company.

3. PRINCIPAL ACTIVITIES

   The Company focuses on 3 main markets in the technology space: Fibre, Fin-tech and Wi-Fi. The Company's broadband services, Legend Fibre and Wi-Fi, are the largest fibre to the home and public Wi-Fi networks in Abuja. The Company's fin-tech service, Legend Pay, offers easy and seamless payments for customers and is directly integrated to merchants and banks.

4. STATE OF AFFAIRS

   In the opinion of the directors, the state of affairs of the company is satisfactory and there has been no material change since the date of the statement of affairs.

5. CHARITABLE CONTRIBUTIONS

   The company did not make contribution to charitable organizations during the year.

6. DIRECTORS

   The names of the directors at the date of this report and of those who held office during the year are as follows:

   1. Dr. Oladimeji Mobolaji Bada Independent Director

   2. Ms. Aisha Abdulaziz Executive Director

   3. Mr. Bruce Brai Ayonote Non-Executive Director

   4. Mr. Suleiman Muhammad Arzika Non-Executive Director

   5. Mr. Ehianeta Mondritz Ebhohimhen Non-Executive Director

   6. Mr. Ayodele Olubunmi Arogbo Non-Executive Director

   7. Mr. Mohammed Yamani Shema Independent Director

   8. Ms. Ifeyinwa Georgina Umunnakwe Independent Director

      REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST JULY 2024
7. DIRECTORS' INTEREST IN SHARES

   1. Mr. Bruce Brai Ayonote 695,000,000 ordinary shares

   2. Mr. Suleiman Muhammad Arzika 656,000,000 ordinary shares

   3. Mr. Ehianeta Mondritz Ebhohimhen 30,000,000 ordinary shares

8. DIRECTORS' INTEREST IN CONTRACTS

   None of the directors has notified the company for the purpose of Section 303 of the Companies and Allied Matters Act, CAP C20 Laws of the Federation of Nigeria 2020 of any disclosable interest in the contracts with which the company is involved as at July 31st, 2024.

9. SHAREHOLDING STRUCTURE

   The shares of the Company as at July 31st, 2024 were held as follows:

   	No of Shares
   1. Mr. Bruce Brai Ayonote	695,000,000
   2. Mr. Suleiman Muhammad Arzika	656,000,000
   3. Mr. Ehianeta Mondritz Ebhohimhen	30,000,000
   4. Synergy Fiberco (Mauritius) Limited	500,000,000
   5. Legacy Guardian LLP	119,000,000
   	2,000,000,000

10. PROPERTY, PLANT AND EQUIPMENT

    Changes in the value of property, plant and equipment (PPE) were mainly due to additions, depreciation and disposals as shown in Note 5 to these financial statements. In the opinion of the Directors, the market value of the company's property, plant and equipment is not lower than the value shown in these financial statements.

11. EMPLOYMENT AND EMPLOYEE Equal Employment Opportunity

    It is the policy of the company that there should be no discrimination in considering applications for employment including those from disabled persons. All employees whether disabled or not are fairly treated and remunerated. As at the financial year end, there was no disabled person in the employment of the company.

    Employee Involvement

    During the year, the company maintained good relationship with its employees. To enhance communication between management and staff, management briefings were extended to all staff

    REPORT OF THE DIRECTORS FOR THE YEAR ENDED 31ST JULY 2024

    during the year. Regular consultative meetings were held to keep employee informed on the state of operations and to bring employee closer to the management.

    Manpower Development

    The development and training of the company employee continue to receive constant attention. It is the belief of the Management that the professional and technical expertise of its staff constitutes a major asset.

12. FORMAT OF FINANCIAL STATEMENT

    The statement of affairs has been issued under the reporting and presentation requirements of the Companies and Allied Matters Act, CAP C20 Laws of the Federation of Nigeria 2020. The directors consider that the format adopted is most suitable for the company.

13. AUDITORS

The Company's auditors, Messrs Poju Professional Services (Chartered Accountants) has indicated its willingness to continue in office in accordance with Section 401 of the Companies and Allied Matters Act, CAP C20 Laws of the Federation of Nigeria 2020.

Dated this Day of 2024

………………………

The Directors of Legend Internet Plc (the "Company") are responsible for the preparation of the financial statements that present fairly the financial position of the Company as at 31 July 2024, and the results of its operations, cash flows and changes in equity for the year then ended, in compliance with International Financial Reporting Standards ("IFRS"), and in the manner required by the Companies and Allied Matters Act of Nigeria and the Federal Reporting Council of Nigeria Act, 2011.

In preparing the financial statements, the Directors are responsible for:

• carefully selecting and applying accounting policies;

• presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable, and understandable information;

• providing additional disclosures when compliance with the specific requirements in IFRSs are insufficient, to enable users understand the impact of transactions, and conditions on the Company's financial position and financial performance; and

• making an assessment of the Company's ability to continue as a going concern.

  The Directors are responsible for:

• designing, implementing, and maintaining an effective and sound system of internal controls throughout the Company;

• maintaining adequate accounting records that are sufficient to show and explain the transactions and disclose with reasonable accuracy at any time the financial position of the Company, and which enable them to ensure that the financial statements of the Company comply with IFRS;

• maintaining statutory accounting records in compliance with the legislation of Nigeria and IFRS;

• taking such steps as are reasonably available to them to safeguard the assets of the Company; and

• preventing and detecting fraud and other irregularities.

The financial statements of the Company for the year ended 31 July 2024 were approved by the Directors on 30th December, 2024.

Signed on behalf of the Directors of the Company

Dr. Oladimeji Mobolaji Bada Aisha Abdulaziz

Chairman of the Board of Directors FRC/2014/IODN/00000006009

Chief Executive Officer FRC/2025/PRO/DIR/003/111246

LEGEND INTERNET PLC

Audited financial statements For the year ended 31 July 2024

Section 405 of the companies and Allied Matters Act (CAMA) 2020 requires the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) of a company other than a small company or persons performing similar functions to take direct responsibility for the financial reports and shall certify in the audited financial statement accordingly.

In pursuant of this section, the CEO and CFO (hereinafter called "officers") certify that the:

1. Officers who signed the audited financial statements have reviewed them, and based on the officers' knowledge the:

   1. audited financial statement do not contain any untrue statement of material fact or omit to state a material fact, which would make the statement misleading in the light of the circumstances under which such statement was made, and

   2. audited financial statement and all other financial information included in the statements fairly present, in all material respect, the financial condition and result of operation of the entity as of and for, the periods covered by the audited financial statement.

2. Officers who signed the audited financial statements:

   1. are responsible for establishing and maintaining internal controls and has design such internal control to ensure that material information relating to the company and its subsidiary is made know to the officer by other officers of the entity particularly during the period in which audited financial statement report is being prepared.

   2. Has evaluated the effectiveness of the entity's internal controls within 90days prior to the date of its audited financial statement, and

   3. Certifies that the entity's internal controls are effective as of that date.

3. Officers who signed the audited financial statements disclosed to the company's auditors and audit committee:

   1. all significant deficiencies in the design or operation of internal control which could adversely affect the entity's ability to record, process, summaries and report financial data, and have identified for the entity's auditors any material weakness in internal control, and

   2. whether or not, there is any fraud that involves management or other employees who have a significant role in

      the entity's internal control, and

      Signed on…………….

      
      
      
      
      
      

4. As indicated in the report, whether or not, there were significant changes in internal control or in other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective action with regard to significant deficiencies and material weakness.

Aisha Abdulaziz Daniel Obioma Mmaduka

Chief Executive Officer Chief Finance Officer

FRC/2025/PRO/DIR/003/111246 FRC/2025/PRO/ICAN/001/580809

statutory audit committee report

For the year ended 31 July 2024

To the membaca of Lngand Internet Pk

LEGgJIDINTERNET PLC

Audited financial statements

far ifie year ended 3l July 2d2/

In accordance wtth the provisions of Section 404{7) of the Companies and Allied Matters Act (CAMA) 2020, the members of the Statutory Audit Committee of Legend Internet Plc hereby report as follows:

• We have exercised our statutory functions under Section 404(7) of the Companies and Allied Matters Act, 2020 and admowtedge the co-operation of management and staff in the conduct of these responsibilities.

• We are of the Dpinion that the accounting and reporting pollcies of the Company are in accordance with legal requirements and agreed ethical practices.

• The scope and plannlng of both the external and internal audits for the year ended 31 July 2024 were satisfactory and reinforce the Company's internal control systems.

• We have considered the External Auditors management letter far the year end we are satisfied with management's responses to the Eternal Auditors recommendations and that management has taken appropriate steps to address thO JssueB raised by the Auditors.

• The External Auditors confirmed they received neceasary cooperation from management in the course of their statutory audit and that the scope of their work was not restricted in any way.

Members of the Statutory Audit Committee that served during the year under review are:

1. lfeyinwa Umunnakwe-Okeke

2. Bruce Ayonote

3. Suleiman Arzika

4. Mondritz Ehi Ebhohirnhen

S. Yamani Shema

Independent Director Non- Executive Director Non- Executive Director Non- Executive Director Independent Director

Chairman Member Member Member Member

9n half of th statutory audit committee

Ifeyinwa Umunnakwe-Okehe Chairman, Statutory AUdit Committee 30 December 2D24

8

In compliance with the provisions of section 405 of the Companies and Allied Matters Act, 2020 and, Investment and Securities Act (ISA) 2007 on internal control over financial reporting, the directors, whose names are stated below, hereby certify that:

1. We have reviewed this audited financial statements of Legend Plc for the year ended 31 July 2024;

2. Based on our knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on our knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. We also certify that we:

   1. are responsible for establishing and maintaining internal controls;

   2. have designed such internal controls and procedures, or caused such internal controls and procedures to be designed under our supervision, to ensure that material information relating to the company, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

   3. have designed such internal control system, or caused such internal control system to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

   4. have evaluated the effectiveness of the company's internal controls and procedures as of a date within 90 days prior to the report and presented in this report our conclusions about the effectiveness of the internal controls and procedures as of the end of the period covered by this report based on such evaluation.

5. We have disclosed, based on our most recent evaluation of internal control system, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

   1. All significant deficiencies and material weaknesses in the design or operation of the internal control system which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

   2. Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control system.

      
      
      

6. We identified, in the report whether or not there were significant changes in internal controls or other facts that could significantly affect internal controls subsequent to the date of their evaluation including any corrective actions with regard to significant deficiencies and material weaknesses.

   
   
   

Aisha Abdulaziz Daniel Obioma Mmaduka

Chief Executive Officer Chief Finance Officer

FRC/2025/PRO/DIR/003/111246 FRC/2025/PRO/ICAN/001/580809

To comply with the provisions of Section 1.3 of SEC Guidance on Implementation of Sections 60-63 of Investments and Securities Act 2007, we hereby make the following statements regarding the Internal Controls of Legend Internet Plc for the year ended 31 July 2024.

1. Legend Internet Plc's management is responsible for establishing and maintaining a system of internal control over financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards.

2. Legend Internet Plc's management used the Committee of Sponsoring Organization of the Treadway Commission(COSO) framework (COSO) Internal Control-Integrated Framework to conduct the required evaluation of the effectiveness of the entity's ICFR.

3. Legend Internet Plc management has assessed that the entity's ICFR as of the end of31 July 2024

4. Legend Internet Plc's external auditor Messrs. Poju Professional Service (PPS) that audited the financial statements, has issued an attestation report on management's assessment of the entity's internal control over financial reporting.

   
   
   
   
   
   

   The attestation report of Messrs. Poju Professional Service (PPS) that audited the financial statements will be filed as part of its annual report.

   Dr. Oladimeji Mobolaji Bada Aisha Abdulaziz

   Chairman of the Board of Directors FRC/2014/IODN/00000006009

   Chief Executive Officer FRC/2025/PRO/DIR/003/111246

   
   
   
   
   
   

   Po u Professional Services

   
   
   

   Independent Auditor's Attestation Report on Management's Assessment of Internal Control over Financial Reporting

   To the members of Legend Internet Plc Scope

   We have been engaged by Legend Internet Plc to perform a 'limited assurance engagement', based on

   International Standards on Assurance Engagements Other Than Audits or Reviews of Historical financial Information ('ISAE 3000 (Revised)') and FRC Guidance on Assurance Engagement Report on Interna1 Control over Financial Reporting, herein referred to as the engagement, to report on legend Internet Plc Internal Control over Financia1 Reporting (ICFR) (the "Subject Matter") contained in Legend Internet Plc (the "Company's") Management's Assessment on Internal Control over Financial Reporting as at 31 July 2024 (the "Report").

   A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that:

   1. pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company

   2. provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are beinB made only in accordance with authorizations of mana9El Int and directors of the company; and

   3. provide reasonable assurance regarding prevention or timely detection of unauthorized

acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent iimitaions, internal cQntrol over financial reporting may not prevent or detect all misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Criteria applied by Legend Internet Plc

In designing, establishing, and operating the Internal Control over Financial Reporting (ICFR) and preparing the Management's assessment of the Internal Control over Financial Reporting (ICFR), Legend Internet Plc applied the requirements of Internal Control-Integrated Framework (2013) of the Gommittee of Sponsoring Organizations of the Treadway Commission (COSO) Framework and SEC Guidance on Management Reporton Internal Control Over Financial Reporting (Criteria). Such Criteria we/e specifically designed to enable organizations effectively and efficiently develop systems of internal control that adapt to changing bUsiness and operating environments, mitigate risks to acceptable levels, and support sound decision making and governance of the organization; As a result, the subject matter information may not be suitable for another purpose.

Legend Internet Plc resPonsibi/ities

Legend Internet Plc management is responsible for maintaining effective internal control

over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Legend Internet Plc managemenl'S dssessrnenfof he /n/erna/ Control over Financial n/›niIii›¿•vs of 31 July 2024 !n accordance with the criteria.

11

Our, responsibility is to express a conclusion on the design and operating effectiveness of the Internal Control over Financial Reporting based on our Assurance engagement.

We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information ('ISAE 3000 (Revised)') and FRC Guidance on Assurance Engagement Report on Internal Control over Financial Reporting, those standards require that we plan and perform our engagement to obtain limited assurance on the entity'sinternal control over financial reporting based on our assurance engagement.

We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for ProfDSSiOnaI Accountants issued by the International Ethics Standards Board for Accountants (IESBA code) and have the required competencies and experience to conduct this assurance engagement. We also apply International Standard on Quality Management 1, Quality Management /or 6/rms thdf Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services engagements, which requires that we design, implement, and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards, and applicable legal and regulatory requirements.

Description of procedures performed

The procedures we performed included obtaining an Understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our engagement also included performing such other procedures as we considered necessary in the circumstances. We believe the procedures performed provides a basis for our repon on the internal control put in place by management over financial reporting,

In conclusion, nothing has come to our attention to indicate that the internal control over financial reporting put in place by management is not adequate as of 31 July 2024, based on the requirements of Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework and SEC Guidance on Management Report on Internal Control Over F nanciaI Reporting.

Other Matter

We also have audited, in accordance with the International Standards on Auditing, the annual report for the year ended 31 4uly 2024 of Legend Internet Plc and our report dated 23 January 2025 of report, which should be the same as the aate of the report on the e/°fec/iveness of internal control over financial rapoding and we expressed an unmodified opinion. Our conclusion is not mod ed in respect of this matter.

/'

Olapoju Bami e e Joshua - FRC/2014/ICAN/00000O06744

For: Poju Professional Services ‹

Chartered Accountants Lagos, Nigeria

23 January 2025

Po u Professional Services

• /hJgit . tIIX . gYi50F/

T$IODO?I 37S0G, OPOl07 18DO, ODl¿?D3t¿

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF LEGEND INTERNET PLC

Report on the Financial Statements

We have audited the accompanying financia1 statements of LEGEND INTERNET PLC which comprise the statements of financial position as at 31 July 2024 and 31 July 2023, and the income statement, statement of changes in equity, statement of cash flows for the years ended 31 July 2024 and 31 July 2023, a summary of significant accounting policies and other explanatory information

Directors' Responsibility for the Financial Statements

The Di ectors are respons'ibe for the preparat'ion and fair presentation of these financial statements n accordance with the Companies and Allied Matters Act CAP C20 LFN 2020, the Financial Reporting Council of Nigeria Act No 60,2023(as amended), the International Financial Reporting Standards and for such internal control as the Directors determine are necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these financial statements based an our audit. We conducted our audit in accordance wilh nternationa Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the aUdit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to ob(ain audit evidence about the amounts and disclosures in tne financial stalements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal controls relevant to the entity's preparation and fair presentation of the financial statements !n order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal contro1. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for or r audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial position of LEGEND

INTERNET PLC as at 31 July 2024, 31 July 2023 and the financial performance and cash flows for the year ended

31 July 2D24 and 31 JUI/ 2022: the company has kept proper books of Account which are in agreement with the financial statements in the manner required by the Companies and Allied Matters Act CAP C20 LFN 2020, the Financial Reporting CoUncil of Nigeria Act NO 6, 2023(as amended), and the International Financial Reporting

Standards.

/

Ola/voju' BarnibéTe Joshua - FRC/2014/TCAN/00000006744 For. Poju Professional Services

Chartered Accountants Lagos, Nigeria

23 January 2025

13

LEGEND INTERNET PLC

Audited financial statements For the year ended 31 July 2024

The financial statements on pages 14 to 17 were approved by the Board of Directors on 30th day of December 2024 and signed on its behalf by:

Aisha Abdulaziz

Chief Executive Officer FRC/2025/PRO/DIR/003/111246

Bruce Brai Ayonote

Non-Executive Director

Daniel Obioma Mmaduka

Chief Finance Officer FRC/2025/PRO/ICAN/001/580809

The notes on pages 18 to 51 form an integral part of these financial statements

Audited financial statements For the year ended 31 July 2024

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Audited financial statements For the year ended 31 July 2024

STATEMENT OF CHANGES IN EQUITY

Audited financial statements For the year ended 31 July 2024

STATEMENT OF CASHFLOW

LEGEND INTERNET PLC

Audited financial statements For the year ended 31 July 2024

1. Frequency of reporting

   The entity presents a complete set of financial statements, including comparative information at least annually (i.e., 12 months). The end of the reporting period is 31 July of every year.

2. Adoption of new and revised International Financial Reporting Standards (IFRSs)
   1. New standards, interpretations and amendments issued and effective

      The following revisions to accounting standards and pronouncements that are applicable to the company were issued which are now effective from the annual periods beginning on or after January 1,2024.

      Where IFRSs and IFRIC Interpretations listed below permits, the company has elected not to apply them in the preparation of these financial statements. The full impact of these IFRSs and IFRIC Interpretations is currently being assessed by the company, but none of these pronouncements are expected to result in any material adjustments to the financial statements.

      1. International Tax Reform - Pillar Two Model Rules Amendments to IAS 12

         Amendments to IAS 12, which introduce a mandatory exception in IAS 12 from recognising and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The amendments clarify that IAS 12 applies to income taxes arising from tax law enacted or substantively enacted to implement the Pillar Two Model Rules published by the Organization for Economic Cooperation and Development (OECD), including tax law that implements qualified domestic minimum top-up taxes. Such tax legislation, and the income taxes arising from it, are referred to as 'Pillar Two legislation' and 'Pillar Two income taxes', respectively.

         The amendments are effective immediately upon issuance, but certain disclosure requirements are effective later.

         The amendments is not applicable to our entity because we are neither MNE (Multinational Enterprise Entity) nor qualify for the minimum revenue threshold required.

      2. Lease Liability in a Sale and Leaseback - Amendments to IFRS 16

The amendment to IFRS 16 specifies the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains.

After the commencement date in a sale and leaseback transaction, the seller-lessee applies paragraphs 29 to 35 of IFRS 16 to the right-of-use asset arising from the leaseback and paragraphs 36 to 46 of IFRS 16 to the lease liability arising from the leaseback. In applying paragraphs 36 to 46, the seller-lessee determines 'lease payments' or 'revised lease payments' in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. Applying these requirements does not prevent the seller-lessee from recognising, in profit or loss, any gain or loss relating to the partial or full termination of a lease, as required by paragraph 46(a) of IFRS 16. The amendment does not prescribe specific measurement requirements for lease liabilities arising from a leaseback.

The initial measurement of the lease liability arising from a leaseback may result in a seller-lessee determining 'lease payments' that are different from the general definition of lease payments in Appendix A of IFRS 16. The seller-lessee will need to develop and apply an accounting policy that results in information that is relevant and reliable in accordance with IAS 8.

This becomes effective for annual periods beginning on or after 1 January 2024.

The amendment is not expected to have an impact on the entity's financial statements.