IFRS Core Tools

Good Group
(International) Limited
Unaudited interim condensed
consolidated financial statements

30 June 2021

International GAAP®
Contents
Abbreviations and key ......................................................................................................................... 2
Introduction ....................................................................................................................................... 3
Interim condensed consolidated statement of profit or loss .................................................................... 9
Interim condensed consolidated statement of comprehensive income ................................................... 11
Interim condensed consolidated statement of financial position ............................................................ 13
Interim condensed consolidated statement of changes in equity ........................................................... 15
Interim condensed consolidated statement of cash flows ...................................................................... 18
Index to notes to the interim condensed consolidated financial statements ........................................... 20

1 Good Group (International) Limited

Abbreviations and key
The following styles of abbreviation are used in these International GAAP® Illustrative Financial Statements:

IAS 33.41 International Accounting Standard No. 33, paragraph 41

IAS 1.BC13 International Accounting Standard No. 1, Basis for Conclusions, paragraph 13
IFRS 2.44 International Financial Reporting Standard No. 2, paragraph 44
SIC 29.6 Standing Interpretations Committee Interpretation No. 29, paragraph 6
IFRIC 5.6 International Financial Reporting Interpretations Committee Interpretation No. 5, paragraph 6
IFRS 9.IG.G.2 International Financial Reporting Standard No. 9 – Guidance on Implementing IFRS 9 -
Section G: Other, paragraph G2
IAS 32.AG3 International Accounting Standard No. 32 – Appendix A-Application Guidance, paragraph AG3
Commentary The commentary explains how the requirements of IFRS have been implemented in arriving at
the illustrative disclosure
Covid-19 This edition of Good Group provides commentary on issues that an entity may need to consider due
Commentary to the impact of the Covid-19 pandemic
GAAP Generally Accepted Accounting Principles/Practice
IFRS International Financial Reporting Standards
IASB International Accounting Standards Board
Interpretations IFRS Interpretations Committee
Committee (formerly International Financial Reporting Interpretations Committee (IFRIC))
SIC Standing Interpretations Committee

Good Group (International) Limited 2

Introduction
This publication contains an illustrative set of interim condensed consolidated financial statements for Good Group
(International) Limited (the parent) and its subsidiaries (the Group) that is prepared in accordance with International
Financial Reporting Standards (IFRS) for the six months ended 30 June 2021. These interim financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting and should be read in conjunction with the Group’s annual
financial statements as at 31 December 2020. The Group is a fictitious, large publicly listed manufacturing company. The
parent company is incorporated in a fictitious country in Europe. The presentation currency of the Group is the euro (€).

Objective
This set of illustrative financial statements is one of many produced by EY to assist you in preparing your own financial
statements. The illustrative financial statements are intended to reflect transactions, events and circumstances that we
consider to be most common for a broad range of entities across a wide variety of industries. Certain disclosures are
included in these financial statements for illustrative purposes even though they may be regarded as items or transactions
that are not material for Good Group.
How to use these illustrative financial statements to prepare entity-specific disclosures

Users of this publication are encouraged to prepare entity-specific disclosures. Transactions and arrangements
other than those applicable to the Group may require additional disclosures. It should be noted that the illustrative
financial statements of the Group are not designed to satisfy any stock market or country-specific regulatory
requirements, nor is this publication intended to reflect disclosure requirements that apply mainly to regulated or
specialised industries.

Notations shown in the right-hand margin of each page are references to IFRS paragraphs that describe the specific
disclosure requirements. Commentaries are provided to explain the basis for the disclosure or to address alternative
disclosures not included in the illustrative financial statements. If questions arise as to the IFRS requirements, it is essential
to refer to the relevant source material and, where necessary, to seek appropriate professional advice.

Improving disclosure effectiveness

Terms such as ’disclosure overload’ and ‘cutting the clutter’ and more precisely ‘disclosure effectiveness’, describe a
problem in financial reporting that has become a priority issue for the International Accounting Standards Board (IASB or
Board), local standard setters, and regulatory bodies. The growth and complexity of financial statement disclosure is also
drawing significant attention from financial statement preparers, and most importantly, the users of financial statements.
Even though there is no formal definition of ‘disclosure overload’, from the different discussions and debates among
stakeholders, two common themes have emerged, namely: financial statements structure and tailoring, including
materiality.
Entities should consider using alternative structures that they may find more effective in permitting users to obtain
the relevant information more easily. This may involve reorganising the notes according to their nature and perceived
importance. By structuring the notes according to their nature and perceived importance, users may find it easier to extract
the relevant information. An example of such an alternative structure for an annual set of financial statements is applied in
Good Group (International) Limited – An Alternative Format, which can be a useful tool for entities to explore ways to enhance
the effectiveness of their financial statement disclosures. Entities may find that alternative structures provide enhanced
disclosure effectiveness in their specific situation. Entities should carefully assess their entity-specific circumstances and
the preferences of the primary users before deciding on a particular structure for the notes.
Applying the concept of materiality requires judgement, in particular, in relation to matters of presentation and disclosure,
and inappropriate application of the concept may be another cause of the perceived disclosure overload problem. IFRS sets
out a set of minimum disclosure requirements which, in practice, are too often complied with without consideration of
the information’s relevance for the specific entity. That is, if the transaction or item is immaterial to the entity, then it
is not relevant to users of financial statements, in which case, IFRS does not require the item to be disclosed (IAS 34.23).
If immaterial information is included in the financial statements, the amount of information may potentially reduce the
transparency and usefulness of the financial statements as the material, and thus relevant information, loses prominence.
IFRS Practice Statement 2 Making Materiality Judgements provides practical guidance and examples that entities may find
helpful when deciding whether information is material. The Practice Statement also provides guidance on how to make
materiality judgements specific for interim reporting. Entities are encouraged to consider it when making materiality
judgements.

3 Good Group (International) Limited

Improving disclosure effectiveness continued

As explained above, the primary purpose of these interim condensed consolidated financial statements is to illustrate
how the most commonly applicable disclosure requirements in IAS 34 can be met. Therefore, they include disclosures
that may, in practice, be deemed not material to Good Group. It is essential that entities consider their particular
circumstances in determining which disclosures to include. These illustrative interim condensed consolidated
financial statements are not intended to act as guidance for making the materiality assessment; they must always
be tailored to ensure that an entity’s financial statements reflect and portray its specific circumstances and its own
materiality considerations. Only then will the financial statements provide decision-useful financial information.
Furthermore, entities should consider the requirements in IAS 34 when determining the materiality of the interim
condensed consolidated financial statements for the purposes of deciding how to recognise, measure, classify, or
disclose an item. The materiality judgements at interim dates may differ from those at year-end.

For more guidance on how to improve disclosure effectiveness, please refer to our publication, Applying IFRS:
Enhancing communication effectiveness (February 2017).

Illustrative financial statements

We provide a number of industry-specific illustrative financial statements and illustrative financial statements addressing
specific circumstances that you may consider. The entire series of illustrative financial statements comprises:
• Good Group (International) Limited
• Good Group (International) Limited – Alternative Format
• Good Group (International) Limited – Illustrative interim condensed consolidated financial statements
• Good First-time Adopter (International) Limited
• Good Investment Fund Limited (Equity)
• Good Investment Fund Limited (Liability)
• Good Real Estate Group (International) Limited
• Good Mining (International) Limited
• Good Petroleum (International) Limited
• Good Bank (International) Limited
• Good Insurance (International) Limited
• Good Life Insurance (International) Limited
• Good General Insurance (International) Limited

International Financial Reporting Standards (IFRS)

The abbreviation IFRS, defined in paragraph 5 of the Preface to International Financial Reporting Standards, includes
”standards and interpretations approved by the IASB, and International Accounting Standards (IAS) and Standing
Interpretations Committee interpretations issued under previous Constitutions”. Thus, when financial statements
are described as complying with IFRS, it means that they comply with the entire body of pronouncements sanctioned
by the IASB. This includes the IAS, IFRS and Interpretations originated by the IFRS Interpretations Committee (formerly
the SIC).
Paragraph 19 of IAS 34 confirms that an interim financial report must not be described as complying with IFRS unless
it complies with all the requirements of IFRS. Thus, in the case of interim condensed financial statements such as these
illustrative financial statements, the Group is not claiming compliance with IFRS as such, but rather, with the requirements
of IAS 34.

International Accounting Standards Board (IASB)

The IASB is the independent standard-setting body of the IFRS Foundation (an independent, not-for-profit private sector
organisation working in the public interest). The IASB is responsible for the development and publication of IFRS, including
the International Financial Reporting Standard for Small and Medium-sized Entities, and for approving interpretations
of IFRS as developed by the IFRS Interpretations Committee.
In fulfilling its standard-setting duties, the IASB follows due process, of which the publication of consultative documents,
such as discussion papers and exposure drafts, for public comment is an important component.

Good Group (International) Limited 4

The IFRS Interpretations Committee (Interpretations Committee)
The Interpretations Committee is a committee, appointed by the IFRS Foundation Trustees, that assists the IASB in
establishing and improving standards in financial accounting and reporting standards for the benefit of users, preparers and
auditors of financial statements.
The Interpretations Committee addresses issues of reasonably widespread importance, rather than issues of concern
to only a small group of entities. These include newly identified financial reporting issues not addressed in IFRS. The
Interpretations Committee also advises the IASB on issues to be considered in the annual improvements to IFRS project.

IFRS as at 28 February 2021

As a general rule, these illustrative financial statements do not adopt standards or amendments before their effective date.
The standards applied in these interim condensed consolidated financial statements are those in issue as at 28 February 2021
and are effective for annual periods beginning on or after 1 January 2021. Entities with annual periods beginning after
1 January 2021 must consider the impact of new standards and interpretations and amendments that become effective
after 1 January 2021, but before or at the beginning of the annual period of the entity. Users of this publication are advised
to check that there has been no change in the requirements of IFRS between 28 February 2021 and the date on which their
financial statements are authorised for issue. In accordance with paragraph 30 of IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors, specific disclosure requirements apply for standards and interpretations issued but not yet
effective. Furthermore, if the financial year of an entity is other than the calendar year, new and revised standards applied in
these interim condensed consolidated financial statements may not be applicable.
For an overview of the upcoming changes in standards and interpretations, please refer to our quarterly IFRS Update
publication.

Interim financial reporting

An interim financial report may contain either a complete set of financial statements (as described in IAS 1) or
a condensed set of financial statements as described in IAS 34. This publication contains an illustrative set of interim
condensed consolidated financial statements of the Group for the six months ended 30 June 2021. These interim
condensed consolidated financial statements assume that the Group only publishes half-year interim financial statements.
If the Group issued quarterly interim financial statements, the second quarter information would include, in addition
to the information included here, statements of profit or loss for the three months ended 30 June 2021 and 2020,
irrespective of whether the Group presents a condensed or complete set of interim financial statements.
In these interim condensed consolidated financial statements, the Group presents the statement of profit or loss, statement
of comprehensive income, statement of financial position, statement of changes in equity and statement of cash flows in
the same format as the annual financial statements. An acceptable alternative would be to provide condensed primary
statements, including a minimum of each of the headings and subtotals that were included in the most recent annual
financial statements (IAS 34.10).
As the Group is not including the full set of disclosures, as required in a complete set of financial statements, the interim
financial statements of the Group are regarded as ‘condensed’, as per IAS 34.

Disclosure of significant events and transactions

The disclosure requirements applicable to interim condensed financial statements are less prescriptive than those
applicable to complete financial statements, but entities must include explanations of events and transactions that
are necessary to provide an understanding of the changes in financial position and performance of the entity since
the last annual reporting date (IAS 34.15). In a few cases, the requirements are the same as those for complete
financial statements (e.g., full disclosure in respect of business combinations is required under IAS 34.16A(i)).
Examples of situations in which disclosures are required are provided in IAS 34, but the exact content and format
of such disclosures must generally be determined by the reporting entity.

Comparative information
Financial statements must include the comparable interim period of the previous financial year for the statement
of profit or loss, statement of comprehensive income, statement of changes in equity and statement of cash flows.
A comparative statement of financial position must be provided as of the end of the preceding annual period.
IAS 1 requires that complete financial statements include comparative information for disclosures provided outside
the primary financial statements (i.e., in the notes). However, a similar explicit requirement is not applicable to interim
condensed financial statements. Nevertheless, where an explanatory note is required by the standard (such as for inventory
write-downs, impairment provisions or segment revenues) or otherwise necessary to provide information about changes in
the financial position and performance since the end of the last annual reporting period, it would be appropriate to provide
information for each period presented. However, it would be unnecessary to provide comparative information if this repeats
information that was reported in the notes to the most recent annual financial statements. Such an approach has been
applied in these interim condensed financial statements.

5 Good Group (International) Limited

Disclosure of required information outside the financial statements
Paragraph 51 of IAS 1 requires each financial statement and the corresponding notes to be clearly identified. Paragraph 50
of IAS 1 requires that the financial statements and the notes are distinguished from other information included in an annual
report or similar documents. These requirements are met by including all of the information required by IFRS in a separate
document. Paragraph 16A of IAS 34 specifies the information required to be provided in the interim financial statements
and explicitly allows some of the required disclosures to be presented elsewhere in the interim financial report.
Paragraph 16A of IAS 34 further clarifies that if disclosures are provided outside the interim financial statements elsewhere
in the interim report, a cross-reference from the interim financial statements to the location of this information is required.
Entities are required to make available the information incorporated by cross-reference on the same terms as the interim
financial statements and at the same time. The Group has included all required disclosures in the notes to the interim
financial statements; as such, the issue of cross-referencing is not relevant. However, entities that include required
disclosures elsewhere in the interim financial report, must ensure that this information is made available to users at the
same basis and at the same time as the interim financial statements. We also encourage entities to ensure that the cross-
references are clear to users of the interim financial statements, for example, through separately identifiable headings
and/or where possible, page number references.

Changes in 2021 edition of the interim condensed financial statements

The 2021 Good Group (International) Limited Illustrative interim condensed consolidated financial statements differ from
the 2020 edition due to new standards, interpretations and amendments becoming effective. The following amendments to
standards have been illustrated as if they were applied for the first time in the 2021 interim financial period, resulting in
consequential changes to the accounting policies and other note disclosures, where applicable:
• Interest Rate Benchmark Reform – Phase 2 – Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
Not all of these amendments impact the Group’s interim condensed consolidated financial statements. If an amendment
affects the Group, it is described together with the impact, in Note 2 of these interim condensed consolidated financial
statements.

Covid-19
The Covid-19 outbreak was first reported near the end of 2019 in Wuhan, China. Since then, the virus has spread
worldwide. On 11 March 2020, the WHO declared the Covid-19 outbreak to be a pandemic.
Covid-19 has significantly impacted the world economy. Many countries have imposed travel bans on millions of people and,
additionally, people in many locations are subject to quarantine measures. Businesses are dealing with lost revenue and
disrupted supply chains. Countries have imposed lockdowns in response to the pandemic and, as a result of the disruption
to businesses, millions of workers have lost their jobs. The Covid-19 pandemic has also resulted in significant volatility in
the financial and commodities markets worldwide. Numerous governments have announced measures to provide both
financial and non-financial assistance to the affected entities.
These developments have presented entities with challenges in preparing their IFRS financial statements. This publication
provides reminders in commentary boxes of the existing disclosure requirements that should be considered when reporting
on the financial effects of the Covid-19 pandemic in IFRS financial statements. However, as the impact largely depends on
the nature of an entity’s business and the extent to which it has been affected, the potential impact has not been illustrated
in these interim condensed consolidated financial statements.
Interim financial reporting presumes that users of the interim financial report also have access to its most recent annual
financial report. Thus, an interim financial report should explain events and transactions that are significant to an
understanding of the changes in financial position and performance of the entity since the previous annual reporting period
and provide an update to the relevant information included in the financial statements of the previous year. Given the
dynamic nature of both government and business responses to the Covid-19, entities should consider whether additional
disclosures are necessary to explain significant events and transactions subsequent to the previous reporting period that
are significant to their financial statements.
As noted in our publications, Applying IFRS - Accounting considerations of the coronavirus pandemic (February 2021),
Applying IFRS – Disclosure of Covid-19 impact (October 2020) and Applying IFRS – Impact of coronavirus on alternative
performance measures and disclosures (May 2020), entities should, in particular, consider the accounting and disclosure
requirements with regards to: going concern, financial instruments, impairment assessment of non-financial assets,
government grants, income taxes, liabilities from insurance contracts, leases, insurance recoveries, onerous contract
provisions, fair value measurement, revenue recognition, inventories, events after the reporting period, other financial
statement disclosure requirements, and other accounting estimates.
The Covid-19 pandemic affects the assumptions and estimation uncertainty associated with the measurement of assets and
liabilities. Therefore, entities should carefully consider whether additional disclosures are necessary in order to help users
of financial statements understand the judgements applied in the financial statements.

Good Group (International) Limited 6

The purpose of the Covid-19 commentaries is to aid entities in making their assessments as to the impact of Covid-19 on
recognition, measurement, presentation, and disclosures. It should be noted that as the Covid-19 pandemic keeps evolving,
entities should consider the latest guidance released in their jurisdiction along with those presented in Good Group
(International) Limited and other publications available on ey.com/ifrs, for instance the Applying IFRS publication
mentioned above.

Financial review by management

Many entities present a financial review by management that is outside the financial statements. IFRS does not require
the presentation of such information, although paragraph 13 of IAS 1 gives a brief outline of what might be included
in an annual report. IFRS Practice Statement 1, Management Commentary provides a broad non-binding framework for
the presentation of a management commentary that relates to financial statements prepared in accordance with IFRS. If
an entity decides to follow the guidance in the Practice Statement, management is encouraged to explain the extent to
which the Practice Statement has been followed. A statement of compliance with the Practice Statement is only permitted
if it is followed in its entirety. The content of a financial review by management is often determined by local market
requirements or issues specific to a particular jurisdiction.
No financial review by management has been included for the Group.

Commentary
Interim financial statements are generally not subject to an audit, unlike annual financial statements. Often interim financial
statements are the subject of review; such review requirements may vary depending on the jurisdiction. It is common practice to
state that the interim financial statements have not been audited by marking the title and/or parts of the interim financial statements
‘unaudited’, as illustrated, although this is not required under IAS 34.
This publication does not contain an illustrative report on the review of the interim condensed consolidated financial statements of
Good Group (International) Limited because many jurisdictions require reporting under their specific requirements or standards and
this publication is not intended to provide guidance on the application of specific requirements of individual jurisdictions.

7 Good Group (International) Limited

Good Group
(International) Limited
Unaudited interim condensed
consolidated financial statements
30 June 2021

Good Group (International) Limited 8

Interim condensed consolidated statement of profit or loss
for the six months ended 30 June
IAS 1.49
IAS 1.10(b)
IAS 1.10A
IAS 1.51(c)
IAS 1 .81A
IAS 34.10
2021 2020 IAS 34.20(b)
Unaudited
€000 €000 IAS 1.51(d),(e)
Notes
Continuing operations
Revenue from contracts with customers 3 88,465 72,092 IFRS 15.113(a)

Rental income 770 715

Revenue 4 89,235 72,807 IAS 1.82(a)

Cost of sales (64,628) (53,596) IAS 1.103

Gross profit 24,607 19,211 IAS 1.85, IAS 1.103

Other operating income 617 1,728 IAS 1.103

Selling and distribution expenses (9,253) (7,228) IAS 1.99, IAS 1.103
Administrative expenses 3,7 (11,118) (9,334) IAS 1.99, IAS 1.103
Other operating expenses 10, 11, 14 (1,497) (91) IAS 1.99, IAS 1.103
Operating profit 3,356 4,286 IAS 1.85, IAS 1.BC55-56

IAS 1.82(b), IFRS 7.20,

Finance costs (1,662) (436) IFRS 16.49
Finance income 204 166
Share of profit of an associate and a joint venture 366 329 IAS 1.82(c)
Profit before tax from continuing operations 4 2,264 4,345 IAS 1.85

Income tax expense 8 (389) (1,194) IAS 1.82(d), IAS 12.77

Profit for the period from continuing operations 1,875 3,151 IAS 1.85

Discontinued operations
Profit/(loss) after tax for the period from IAS 1.82(ea)
discontinued operations 6 619 (18) IFRS 5.33(a)

Profit for the period 2,494 3,133 IAS 1.81A(a)

Attributable to:
Equity holders of the parent 2,447 3,072 IAS 1.81B(a)(ii)
Non-controlling interests 47 61 IAS 1.81B(a)(i)

2,494 3,133
Earnings per share (EPS): IAS 33.66, IAS 34.11

 Basic, profit for the period attributable to IAS 33.69

ordinary equity holders of the parent €0.11 €0.15 IAS 34.11
 Diluted, profit for the period attributable to
ordinary equity holders of the parent €0.10 €0.14
Earnings per share from continuing
operations:
 Basic, profit from continuing operations
attributable to ordinary equity holders of
the parent €0.08 €0.15
 Diluted, profit from continuing operations
attributable to ordinary equity holders of
the parent €0.08 €0.14

9 Good Group (International) Limited

Commentary
IAS 1.10 suggests titles for the primary financial statements, such as ‘Statement of profit or loss and other comprehensive income’
or ’Statement of financial position’. However, entities are permitted to use other titles, such as ‘Income statement’ or ‘Balance
sheet’.
In a condensed interim financial statement, IAS 34 requires, at a minimum, each of the headings and subtotals that were inclu ded in
its most recent annual financial statements. The Group has chosen to include not only this minimum, but all line items included in the
2020 annual financial statements. As the Group is not providing the full set of disclosures, as required in a complete set of financial
statements, the interim financial statements of the Group are regarded as ‘Condensed’, as per IAS 34.
IAS 1.99 requires expenses to be analysed by the nature of the expense or by their function within the entity, whichever provides
information that is reliable and more relevant. In line with its annual financial statements, the Group has presented the analysis
of expenses by function. Our publication, Good Group (International) Limited - Illustrative financial statements for the year ended
31 December 2020, includes an appendix that illustrates a statement of profit or loss presented with an analysis of expenses by
nature.
IFRS 15 Revenue from Contracts with Customers, paragraph 113(a) requires revenue recognised from contracts with customers to
be disclosed separately from other sources of revenue, unless presented separately in the statement of comprehensive income. The
Group has elected to present the revenue from contracts with customers as a line item in the statement of profit or loss separate
from the other source of revenue.
IAS 33 Earnings per Share, paragraph 68 requires presentation of basic and diluted amounts per share for discontinued operations
either in the statement of profit or loss or in the notes to the financial statements. The Group has elected to show this information
with other disclosures required for discontinued operations in Note 6 and to show the earnings per share information for continuing
operations in the statement of profit or loss.
The Group has presented operating profit in the statement of profit or loss although not required by IAS 1. If disclosing operating
profit, an entity needs to ensure that the amount disclosed is representative of activities that would normally be regarded as
’operating’ and that it is relevant to the understanding of the financial statements.
The interim condensed consolidated financial statements have not been audited. To indicate to the users that the financial
statements were not audited, the Group is marking each primary financial statements column as ’Unaudited’. While this may
be considered best practice, there is no requirement in IFRS to do so.
IAS 1.82(c) requires ‘Share of the profit or loss of associates and joint ventures accounted for using the equity method’ to be
presented in a separate line item on the face of the statement of profit or loss. In complying with this requirement, the Group
combines the share of profit or loss from associates and joint ventures in one line item. Alternatively, two separate line items
could be presented if it is considered relevant – one for associates and one for joint ventures. In addition, there is no explicit
requirement as to where in the statement of income this line item should be shown, and different approaches can be seen in
practice (i.e., either within or outside the operating profit).
IAS 1.82(ba) requires that the statement of profit or loss includes line items that present the impairment losses (including reversals
of impairment losses or impairment gains) determined in accordance with IFRS 9 Financial Instruments. The Group did not present
its impairment losses determined in accordance with IFRS 9 separately in the statement of profit or loss as the amounts are not
material. Furthermore, according to IAS 34.10, in interim condensed financial statements entities are allowed to combine lines
required to be presented separately in the complete financial statements, as long as those condensed statements include, at a
minimum, each of the headings and subtotals that were included in its most recent annual financial statements.
IFRS 16 Leases, paragraph 49 requires a lessee to present in the statement of profit or loss the interest expense on lease liabilities
separately from the depreciation charge for the right-of-use assets. The interest expense on the lease liabilities is a component
of finance costs, which IAS 1.82(b) requires to be presented separately in the statement of profit or loss. Consistent with this
requirement, the Group presented interest expense on lease liabilities under ‘Finance costs’ and the depreciation charge on the right-
of-use assets was included in the ‘Cost of sales’ and ’Administrative expenses’.

Covid-19 commentary
IAS 34.16A(c) requires entities to disclose the nature and amount of items affecting assets, liabilities, equity, net income or cash
flows that are unusual because of their nature, size or incidence.
There are various ways that an entity may elect to provide information on the impact of the Covid-19 pandemic. For example,
entities may decide to present additional line items in their statement of profit or loss or disclose quantitative estimates or qualitative
explanations of the impact of the Covid-19 pandemic in the notes to the financial statements. Other entities may decide to use
a variety of financial measures, other than the measures required by the application of IFRS, sometimes referred to as, adjusted
numbers, non-GAAP measures, Management Performance Measures, or Alternative Performance Measures.
Entities should be cautious regarding any separate presentation of the impacts of the Covid-19 pandemic in the primary financial
statement. Separate presentation of Covid-19 adjusted items may be inappropriate, as distinguishing the effect of the Covid-19
pandemic from other developments may be difficult, and therefore, such presentation may be misleading. Entities should, as required
by IAS 34.16A(c), disclose qualitative and quantitative information on the significant impacts of the Covid-19 pandemic and the
methodology applied for their determination, in a way that provides a clear and unbiased picture.

Good Group (International) Limited 10

Interim condensed consolidated statement of comprehensive
income
for the six months ended 30 June
IAS 1.49
IAS 1.10(b)
IAS 1.51(c)
IAS 1 .81A
IAS 34.10
2021 2020 IAS 34.20(b)
Unaudited IAS 1.90
€000 €000 IAS 1.51(d),(e)
Notes IAS 12.61A

Profit for the period 2,494 3,133 IAS 1.81A(a)

Other comprehensive income IAS 1.82A

Other comprehensive income that may be reclassified to profit or loss

in subsequent periods (net of tax):
Net gain on hedge of net investment 192 90
IAS 21.32
Exchange differences on translation of foreign operations (205) (96) IAS 21.52(b)
Net gain/(loss) on cash flow hedges 9 (238) 28
Net gain on debt instruments at fair value through other
IFRS 7.20(a)(viii)
comprehensive income 9 16 57
Share of other comprehensive income of an associate 9 (10) − IAS 1.82A(b)

Net other comprehensive income that may be reclassified to profit

or loss in subsequent periods, net of tax (245) 79 IAS 1.82A

Other comprehensive income that will not be reclassified to profit or

loss in subsequent periods (net of tax):
Net loss on equity instruments at fair value through other
comprehensive income (182) (17) IFRS 7.20(a)(vii)
IAS 19.120(c)
Remeasurement gain/(loss) on defined benefit plans (19) 132 IAS 19.122
Revaluation of office properties in Euroland − 592 IAS 16.39
Share of other comprehensive income of an associate 10 − IAS 1.82A(b)

Net other comprehensive income/(loss) that will not be

IAS 1.82A
reclassified to profit or loss in subsequent periods, net of tax (191) 707

Other comprehensive income/(loss), net of tax (436) 786 IAS 1.81A(b)

Total comprehensive income, net of tax 2,058 3,919 IAS 1.81A(c)

Attributable to:
Equity holders of the parent 2,011 3,858 IAS 1.81B(b)(ii)

Non-controlling interests 47 61 IAS 1.81B(b)(i)

2,058 3,919

11 Good Group (International) Limited

Commentary
The Group has elected in its annual financial statements to present two statements, a statement of profit or loss and a statement
of comprehensive income, rather than a single statement of profit or loss and other comprehensive income combining the two
elements. The selection between these two alternatives is a policy choice. Consistent with its annual financial statements, the Group
presents the interim statement of profit or loss and other comprehensive income in two statements.
As the Group presents items of other comprehensive income net of the related tax effects in its annual financial statements, the
same presentation applies to its interim financial statements. The Group has elected to provide additional information, not required
by IAS 34, in the notes (Note 9) to present the amount of reclassification adjustments and current period gains or losses. If the
Group changes its presentation policy, the items of other comprehensive income could be presented before the related tax effects,
with the income tax relating to each item presented within the statement of comprehensive income. Alternatively, the total of the
related income tax could be presented in the statement of comprehensive with a breakdown disclosed in the notes (IAS 1.90-91).
IAS 1.82A requires that items that will be reclassified subsequently to profit or loss, when specific conditions are met, must be
grouped on the face of the statement of comprehensive income. Similarly, items that will not be reclassified must also be grouped.
Both IAS 1.82A and the Implementation Guidance further clarify that entities must present the share of the other comprehensive
income items of associates and joint ventures accounted for using the equity method, in aggregate as single line items within the
’items that will be reclassified’ and the ‘items that will not to be reclassified’ groups. As at 30 June 2021, the Group’s associate
has financial assets at fair value through other comprehensive income (FVOCI) and an office building located in Euroland that is
accounted for under the revaluation model. Consequently, the Group presents items of other comprehensive income related to
the associate in two separate line items in the interim condensed consolidated statement of comprehensive income.
The Group has presented, under OCI, the gains and losses arising from cash flow hedges, including those related to foreign currency
and commodity forward contracts that are hedges of forecast purchases of nonfinancial assets, that may be reclassified to pro fit or
loss in subsequent periods. Under IFRS 9.6.5.11(d)(i), if a hedged forecast transaction subsequently results in the recognition of
a nonfinancial asset, the entity must remove the amount from the cash flow hedge reserve and include it directly in the initial cost
or other carrying amount of the asset as a basis adjustment. IAS 1.96 states that reclassification adjustments do not arise if a cash
flow hedge results in amounts that are removed from the cash flow hedge reserve or a separate component of equity and include d
directly in the initial cost or other carrying amount of an asset. However, other comprehensive income arising from a cash flow
hedge of a future transaction of a nonfinancial item may not always result in a basis adjustment. These amounts might be reclassified
to profit or loss in the case of a loss that is expected not to be partially or fully recovered (IFRS 9.6.5.11(d)(iii)), or if the future cash
flows are no longer expected to occur (IFRS 9.6.5.12(b)). The Group decided to present other comprehensive income arising from
cash flow hedges consistently with the requirements for items of other comprehensive income that may be reclassified subsequently
to profit or loss when specified conditions are met. Please refer to Note 12 for a more detailed discussion on hedging transactions
that is included in the Covid-19 commentary.

Good Group (International) Limited 12

Interim condensed consolidated statement of financial position
as at
IAS 1.10(a),(f)
30 June 2021 31 December 2020 IAS 1.49, IAS 1.51(c)
Unaudited Audited IAS 34.10, IAS 34.20(a)
€000 €000
Assets Notes IAS 1.51(d),(e)
Non-current assets IAS 1.60
Property, plant and equipment 10 39,056 32,979 IAS 1.54(a)
Right-of-use assets 3,044 2,812 IFRS 16.47
Investment properties 8,951 8,893 IAS 1.54(b)
Goodwill and intangible assets 4,990 6,019 IAS 1.54(c)
Investments in an associate and a joint venture 3,553 3,187 IAS 1.54(e)
Non-current financial assets 12 4,284 3,761 IAS 1.54(d), IFRS 7.8
Deferred tax assets 657 383 IAS 1.54(o), IAS 1.56
64,535 58,034
Current assets IAS 1.60, IAS 1.66
Inventories 11 22,831 26,375 IAS 1.54(g)
Right of return assets 1,356 1,124 IFRS 15.B21
Trade receivables 27,374 25,672 IAS 1.54(h), IFRS 15.105
Contract assets 4,959 4,541 IFRS 15.105
Prepayments 208 244 IAS 1.55
Other current financial assets 12 753 551 IAS 1.54(d), IFRS 7.8
Cash and short-term deposits 13 15,819 17,114 IAS 1.54(i)
73,300 75,621
Assets held for sale 6 − 13,554 IAS 1.54(j), IFRS 5.38
73,300 89,175
Total assets 137,835 147,209
Equity and liabilities
Equity
Issued capital 21,888 21,888 IAS 1.54(r), IAS 1.78(e)
Share premium 4,780 4,780
Treasury shares (508) (508)
Other capital reserves 1,374 1,171
Retained earnings 33,353 31,926
Other components of equity (1,078) (621)
Reserves of a disposal group held for sale 6 − 46
Equity attributable to equity holders of the parent 59,809 58,682
Non-controlling interests 2,162 2,127 IAS 1.54(q)
Total equity 61,971 60,809
Non-current liabilities IAS 1.60
Interest-bearing loans and borrowings 12 22,477 21,978 IAS 1.54(m)
Other non-current financial liabilities 12 806 502 IAS 1.54(m), IFRS 7.8
Provisions 14 1,557 1,898 IAS 1.54(l)
Government grants 2,164 3,300 IAS 20.24
Contract liabilities 1,138 2,962 IFRS 15.105
Net employee defined benefit liabilities 2,972 3,050 IAS 1.55, IAS 1.78(d)
Deferred tax liabilities 3,493 2,454 IAS 1.54(o), IAS 1.56
34,607 36,144
Current liabilities IAS 1.60, IAS 1.69
Trade and other payables 22,385 16,969 IAS 1.54(k)
Contract liabilities 3,029 2,880 IFRS 15.105
Refund liabilities 6,430 6,242 IFRS 15.B21
Interest-bearing loans and borrowings 12 2,759 2,811 IAS 1.54(m), IFRS 7.8(g)
Other current financial liabilities 5, 12 2,234 3,257 IAS 1.54(m), IFRS 7.8
Government grants 400 149 IAS 1.55, IAS 20.24
Income tax payable 3,337 3,511 IAS 1.54(n)
Provisions 14 683 902 IAS 1.54(l)
Dividends payable 18 − 410
41,257 37,131
Liabilities directly associated with the assets held for sale 6 − 13,125 IAS 1.54(p), IFRS 5.38
41,257 50,256
Total liabilities 75,864 86,400
Total equity and liabilities 137,835 147,209

13 Good Group (International) Limited

Commentary
IAS 1.54(e) requires investments accounted for using the equity method to be presented as a separate line item in the statement of
financial position, if material. In complying with this requirement, the Group has combined the investments in an associate and a joint
venture in one line. Alternatively, two separate line items could be presented if it is considered relevant – one for associates and one
for joint ventures.
Consistent with its annual financial statements, the Group has presented separate classifications on the face of the interim condensed
consolidated statement of financial position for current and non-current assets and current and non-current liabilities. IAS 1.60
requires entities to present assets and liabilities in the order of their liquidity when this provides information that is reliable and
more relevant.
Under IAS 1.10(f) and IAS 1.40A, an entity is required to present an opening statement of financial position (third balance sheet)
when it changes its accounting policies, makes retrospective restatements or reclassifications, and that change has a material effect
on the statement of financial position. However, as indicated in IAS 1.40C, the related notes to support the third balance sheet are
not required, nor are additional statements of profit or loss and other comprehensive income, changes in equity or cash flows . Unless
an entity presents a complete set of financial statements under IAS 34.9, there is no requirement to present a third balance sheet
in the interim financial statements. Thus, as the Group applies the condensed format defined in IAS 34.8, there is no requirement
to include a third balance sheet even if it had made retrospective restatements in the interim period. Where an entity believes that
it is helpful to explain the effect of the retrospective restatements in its interim condensed financial statements, it may voluntarily
present an additional third balance sheet.
If the amounts differ from the amounts in the 2020 financial statements on which the Group’s auditor previously reported, the
31 December 2020 condensed consolidated statement of financial position should be labelled ’Unaudited’. In the case where an
entity had already filed revised prior year audited financial statements with the appropriate regulatory body and the auditor had
issued an opinion thereon, it would not be appropriate to label the statement of financial position as ‘Unaudited’.
The Group presented ‘Contract assets’ and ‘Contract liabilities’ in the statement of financial position using the terminology from
IFRS 15. IFRS 15.109 allows an entity to use alternative descriptions. However, it must disclose sufficient information so that
users of the financial statements can clearly distinguish a receivable, which is an unconditional right to receive consideration from
a contract asset.
IFRS 15.B25 requires an entity to present a refund liability separately from the corresponding asset (on a gross basis, rather than
a net basis). The Group presented ‘Right of return assets’ and ‘Refund liabilities’ separately in the statement of financial position.
IFRS 16.47 requires a lessee to either present in the statement of financial position, or disclose in the notes, the right-of-use assets
separately from other assets and lease liabilities separately from other liabilities. If a lessee does not present right-of-use assets
separately in the statement of financial position, the lessee is required to include right-of-use assets within the same line item as that
within which the corresponding underlying assets would be presented if they were owned (e.g., under property, plant and equip ment)
and disclose which line items in the statement of financial position include those right-of-use assets. Similarly, if the lessee does
not present lease liabilities separately in the statement of financial position, the lessee is required to disclose the line items in
the statement of financial position which include those liabilities. The Group presented its ‘Right-of-use assets’ separately in the
statement of financial position. The related lease liabilities were presented in the line item ‘Interest-bearing loans and borrowings’.
Under IFRS 16.48, right-of-use assets that meet the definition of investment property are required to be presented in the statement
of financial position as investment property. The Group does not have right-of-use assets that meet the definition of investment
property.

Good Group (International) Limited 14

Interim condensed consolidated statement of changes in equity
For the six months ended 30 June 2021
Attributed to equity holders of the parent
IAS 1.10(c)
Fair value IAS 1.49
reserve of Foreign IAS 1.51(b)(c)
Other Cash flow financial currency Asset Reserve of Non- IAS 34.10
Issued Share Treasury capital Retained hedge assets at translation revaluation disposal group controlling Total IAS 34.20(c)
capital premium shares reserves earnings reserve FVOCI reserve surplus held for sale Total interests equity IAS 1.106(d)

€000 €000 €000 €000 €000 €000 €000 €000 €000 €000 €000 €000 €000 IAS 1.51(d),(e)
As at 1 January 2021 21,888 4,780 (508) 1,171 31,926 (580) (114) (469) 542 46 58,682 2,127 60,809
Profit for the period − − − − 2,447 − − − − − 2,447 47 2,494 IAS 1.106(d)(i)
Other comprehensive
income − − − − (19) (238) (176) (13) 10 − (436) − (436) IAS 1.106(d)(ii)
Total comprehensive
income − − − − 2,428 (238) (176) (13) 10 − 2,011 47 2,058 IAS 1.106(a)
Depreciation transfer
for office properties in
Euroland − − − − 40 − − − (40) − − − − IAS 1.96

Share-based payments IAS 1.106(d)(iii)

(Note 15) − − − 203 − − − − − − 203 − 203 IFRS 2.50
Dividends (Note 18) − − − − (1,087) − − − − − (1,087) − (1,087) IAS 1.107
Dividends paid to non-
controlling interest − − − − − − − − − − − (12) (12) IAS 1.106(d)(iii)
Transfer of reserve of
disposal group held for
sale upon disposal − − − − 46 − − − − (46) − − −

At 30 June 2021
(unaudited) 21,888 4,780 (508) 1,374 33,353 (818) (290) (482) 512 − 59,809 2,162 61,971

15 Good Group (International) Limited

Interim condensed consolidated statement of changes in equity continued
For the six months ended 30 June 2020
Attributed to equity holders of the parent
IAS 1.51(b),(c)
Fair value IAS 1.10(c)
reserve of Foreign IAS 34.10
Other Cash flow financial currency Asset IAS 34.20(c)
Issued Share Treasury capital Retained hedge assets at translation revaluation Non-controlling Total IAS 1.49
capital premium shares reserves earnings reserve FVOCI reserve surplus Total interests equity IAS 1.106(d)
€000 €000 €000 €000 €000 €000 €000 €000 €000 €000 €000 €000 IAS 1.51(d),(e)

As at 1 January 2020 19,388 80 (654) 864 26,135 (245) 2 (444) − 45,126 457 48,841
Profit for the period − − − − 3,072 − − − − 3,072 61 3,133 IAS 1.106(d)(i)
Other comprehensive
income − − − − 132 28 40 (6) 592 786 − 786 IAS 1.106(d)(ii)
Total comprehensive
income − − − − 3,204 28 40 (6) 592 3,858 61 3,919 IAS 1.106(a)
Depreciation transfer for
office properties in
Euroland − − − − 40 − − − (40) − − − IAS 1.96
Issue of share capital 2,500 4,703 − − − − − − − 7,203 − 7,203 IAS 1.106(d)(iii)
Transaction costs − (32) − − − − − − − (32) − (32) IAS 32.39, IAS 1.109

Share-based payments IAS 1.106(d)(iii)

(Note 15) − − − 150 − − − − − 150 − 150 IFRS 2.50

Dividends (Note 18) − − − − (1,082) − − − − (1,082) − (1,082) IAS 1.107

Dividends paid to non-
controlling interest − − − − − − − − − − (20) (20) IAS 1.106(d)(iii)

Acquisition of a subsidiary − − − − − − − − − − 1,547 1,547 IAS 1.106(d)(iii)

At 30 June 2020
(unaudited) 21,888 4,751 (654) 1,014 28,297 (217) 42 (450) 552 55,223 2,045 57,268

Good Group (International) Limited 16

 Commentary
For equity-settled share-based payment transactions, paragraph 7 of IFRS 2 Share-based Payment requires entities to recognise an
increase in equity when goods or services are received. However, IFRS 2 does not specify where in equity it should be recognised.
The Group has chosen to recognise the credit in other capital reserves.
Paragraph 35 of IAS 32 Financial Instruments: Presentation requires transaction costs of an equity transaction to be accounted for as
a deduction from equity, but does not specify where in equity it should be recognised. The Group has chosen to recognise the charge
as a reduction of share premium.
According to IAS 1.106(d), a reconciliation between the carrying amount at the beginning and end of the period, separately disclosing
changes resulting from profit or loss, other comprehensive income, and transactions with owners must be presented for each
component of equity. The Group provides this reconciliation for total other comprehensive income on a more granular basis,
presenting some of the components of other comprehensive income as separate columns. Alternatively, the Group could have
presented the total other comprehensive income as one component of equity only.
IAS 1.106A requires an entity to present, either in the statement of changes in equity or in the notes, an analysis of other
comprehensive income by item. However, IAS 34 does not require this additional information in condensed interim financial
statements. The Group provides additional information in Note 9 for line items that are significant to the understanding of the
financial statements (given the materiality of the amounts, it is debatable whether the disclosures provided in Note 9 are required,
but for the purpose of these illustrative financial statements, they have been included). For items that are not considered material,
the Group has concluded that such additional information would not be useful.
Amounts presented as change in ‘Asset revaluation surplus’ and ‘Fair value reserve of financial assets at FVOCI’ include a share
of the other comprehensive income of the associate, which relates to the revaluation of an office building in Euroland and the
remeasurement of financial assets at FVOCI. While IAS 1 specifically requires that entities must present the share of the other
comprehensive income items of their equity method investees, in aggregate, as a single line items within the ’items that will be
reclassified’ and the ‘items that will not be reclassified’ groups, IAS 28 Investments in Associates and Joint Ventures, IAS 1 and
IFRS 12 Disclosure of Interests in Other Entities do not provide guidance on the presentation of accumulated shares of other
comprehensive income of equity-accounted investees by the investor. The Guidance on implementing IAS 1 contains an example in
which the accumulated property, plant and equipment revaluation gain is included in the revaluation surplus of the investor. Good
Group applies similar presentation of accumulated items of other comprehensive income of its associate. However, as current IFRS
does not have specific requirements, other presentation approaches may also be acceptable.

17 Good Group (International) Limited

Interim condensed consolidated statement of cash flows
For the six months ended 30 June
IAS 1.49
IAS 1.51(c)
2021 2020 IAS 34.20(d)
Unaudited IAS 1.10(d)
Notes €000 €000 IAS 1.51(d),(e)

Operating activities IAS 7.10, IAS 7.18(b)

Profit before tax from continuing operations 2,264 4,345

Profit/(loss) before tax from discontinued operations 6 890 (30)
Profit before tax 3,154 4,315

Adjustments to reconcile profit before tax to net cash flows: IAS 7.20(b)

Depreciation and impairment of property, plant and equipment

and right-of-use assets 1,282 1,449
Amortisation and impairment of goodwill and
intangible assets 1,614 70
Fair value adjustment of a contingent consideration 12 53 −
Fair value adjustment of investment properties (58) −
Share-based payment expense 15 203 150
Gain on disposal of property, plant and equipment 10 (53) (5)
Gain on disposal of discontinued operations 6 (885) −
Reversal of restructuring provision 14 (266) −
Finance income (204) (166) IAS 7.20(c)

Finance costs 1,662 436 IAS 7.20(c)

Other expense 11 700 567

Share of net profit of associate and a joint venture (366) (329)
Movements in provisions, pensions and government grants (1,047) (252)
Net foreign exchange differences 303 (283) IAS 21.52(a)

Working capital adjustments: IAS 7.20(a)

Increase in trade receivables, contract assets and

prepayments (2,084) (2,147)
Decrease in inventories and right of return assets 3,312 1,312
Increase in trade and other payables, contract
liabilities and refund liabilities 4,270 1,797
11,590 6,914
Settlement of contingent consideration of business
combination 12 (411) − IAS 7.12
Interest received 250 319 IAS 7.31
Interest paid (596) (424) IAS 7.31
Income tax paid (774) (846) IAS 7.35
Net cash flows from operating activities 10,059 5,963

Investing activities IAS 7.10, IAS 7.21

Proceeds from sale of property, plant and equipment 10 1,352 1,415 IAS 7.16(b)
Proceeds from sale of discontinued operations, net of
cash disposed 6 515 — IAS 7.39
Purchase of property, plant and equipment 10 (4,087) (1,320) IAS 7.16(a)
Acquisition of a subsidiary, net of cash acquired 5 (5,929) (370) IAS 7.39
Settlement of contingent consideration of business 12 IAS 7.16, IAS 7.39,
combination (714) — IAS 7.12
Currency forward contracts paid (1,061) — IAS 7.16(g)
Loan to an associate (50) — IAS 7.16(e)
Net cash flows used in investing activities (9,974) (275)

Good Group (International) Limited 18

Interim condensed consolidated statement of cash flows
continued
For the six months ended 30 June
IAS 1.49
IAS 1.51(c)
2021 2020 IAS 34.20(d)
Unaudited IAS 1.10(d)
Notes €000 €000 IAS 1.51(d),(e)
Financing activities IAS 7.10, IAS 7.21
Proceeds from loans 12 1,582 2,559 IAS 7.17(c)
Repayment of loans 12 (1,253) (108) IAS 7.17(d)
Payment of lease liabilities 12 (312) (288) IFRS 16.50
Transaction costs of issue of shares — (32) IAS 7.17(a)
Dividend paid to equity holders of the parent 18 (1,497) (1,082) IAS 7.31
Dividend paid to non-controlling interests 18 (12) (20) IFRS 12.B10(a)

Net cash flows (used in)/from financing activities (1,492) 1,029

Net (decrease)/increase in cash and cash equivalents (1,407) 6,717

Net foreign exchange difference (373) 266 IAS 7.28
Cash and cash equivalents at 1 January 16,699 8,024

Cash and cash equivalents at 30 June 13 14,919 15,007 IAS 7.45

Commentary
Paragraph 18 of IAS 7 Statement of Cash Flows allows entities to report cash flows from operating activities using either the direct
method or the indirect method. The Group presents its cash flows using the indirect method. Our publication, Good Group
(International) Limited - Illustrative financial statements for the year ended 31 December 2020, includes an appendix that illustrates
the presentation of the statement of cash flows using the direct method.
The Group has reconciled profit before tax to net cash flows from operating activities. However, a reconciliation from profit after
tax is also acceptable under IAS 7 Statement of Cash Flows.
IAS 7 permits interest paid to be shown as an operating or financing activity and interest received to be shown as an operating
or investing activity, as deemed relevant for the entity. Interest paid (including the interest on lease liabilities) is classified as
an operating activity as the Group considers this to relate directly to the cost of operating the business. Interest received is also
considered an operating activity by the Group.
IFRS 16.50 requires that in the statement of cash flows, a lessee classifies: cash payments for the principal portion of the lease
liability within financing activities; cash payments for the interest portion of the lease liability applying the requirement s in IAS 7
for interest paid (i.e., IAS 7.31-33); and short-term lease payments, payments for leases of low-value assets and variable lease
payments not included in the measurement of the lease liability within operating activities. Non-cash activity (e.g., the initial
recognition of the lease at commencement) is required to be disclosed as a supplemental non-cash item in accordance with IAS 7.43.

19 Good Group (International) Limited

Index to notes to the interim condensed consolidated
financial statements
1. Corporate information ................................................................................................................... 21
2. Basis of preparation and changes to the Group’s accounting policies ................................................. 21
3. Revenue from contracts with customers ......................................................................................... 24
4. Segment information..................................................................................................................... 26
5. Business combinations .................................................................................................................. 28
6. Discontinued operations ................................................................................................................ 30
7. Impairment testing of goodwill and intangible assets with indefinite lives ........................................... 31
8. Income tax ................................................................................................................................... 32
9. Components of other comprehensive income .................................................................................. 34
10. Property, plant and equipment ..................................................................................................... 34
11. Inventories ................................................................................................................................. 35
12. Financial assets and financial liabilities.......................................................................................... 36
13. Cash and short-term deposits....................................................................................................... 45
14. Reversal of restructuring provision ............................................................................................... 45
15. Share-based payments ................................................................................................................ 45
16. Commitments and contingencies .................................................................................................. 46
17. Related party disclosures............................................................................................................. 46
18. Distributions made and proposed ................................................................................................. 47
19. Events after the reporting period ................................................................................................. 48

Good Group (International) Limited 20

Notes to the interim condensed consolidated financial statements

1. Corporate information
The interim condensed consolidated financial statements of Good Group (International) Limited and its IAS 10.17
subsidiaries (collectively, the Group) for the six months ended 30 June 2021 were authorised for issue
in accordance with a resolution of the directors on 9 August 2021.
Good Group (International) Limited (the Company) is a limited company, incorporated and domiciled in IAS 1.138(a)
Euroland, whose shares are publicly traded. The registered office is located at Fire House, Ashdown Square IAS 1.138(b)

in Euroville. The Group is principally engaged in the provision of fire prevention and electronic equipment
and services and the management of investment property.

Commentary
There is no explicit requirement in IAS 34 to include corporate information in a condensed set of interim financial
statements, as is required in a complete set of financial statements under IAS 1. However, it is good practice to
disclose such information to provide users insights into the specifics of the reporting entity and its business.

2. Basis of preparation and changes to the Group’s accounting policies

2.1. Basis of preparation IAS 34.19

The interim condensed consolidated financial statements for the six months ended 30 June 2021 have
been prepared in accordance with IAS 34 Interim Financial Reporting. The Group has prepared the financial
statements on the basis that it will continue to operate as a going concern. The Directors consider that there
are no material uncertainties that may cast doubt significant doubt over this assumption. They have formed
a judgement that there is a reasonable expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future, and not less than 12 months from the end of the reporting
period.
The interim condensed consolidated financial statements do not include all the information and disclosures
required in the annual financial statements, and should be read in conjunction with the Group’s annual
consolidated financial statements as at 31 December 2020.

Commentary
IAS 34.19 clarifies that an interim financial report must not be described as complying with IFRS unless it complies with
all of the requirements of IFRS. In these interim condensed consolidated financial statements, the Group is not claiming
compliance with IFRS in its entirety, but rather, with the requirements of IAS 34. If a complete set of interim financial
statements was provided complying with all requirements of IFRS, entities may be able to include in their compliance
statement, with reference to IFRS as issued by the IASB, in addition to IAS 34.
A statement that the financial statements are prepared on a going-concern basis is not a requirement of IFRS. However,
it is required by regulators in certain jurisdictions and may be considered a “best practice” disclosure. The Group has
decided to disclose the basis of preparation for these reasons.

Covid-19 commentary
IAS 34.15 requires an entity to include in its interim financial report an explanation of events and transactions that are
significant to an understanding of the changes in financial position and performance of the entity since the end of the
last annual reporting period. Also, an entity is required to include explanations regarding the nature and amount of
items that are unusual because of their nature, size or incidence. Information disclosed in relation to those events
and transactions should also update the relevant information presented in the most recent annual financial report.
IAS 34.15B includes a number of required disclosures as well as a non-exhaustive list of events and transactions for
which disclosures would be required if they are significant. For example, where significant, an entity needs to disclose
changes in the business or economic circumstances that affect the fair value of its financial assets and financial
liabilities, whether those assets or liabilities are recognised at fair value or amortised cost. An entity is also required
to disclose any loan default or breach of a loan agreement that has not been remedied on or before the end of the
reporting period. Similarly, transfers between levels of the fair value hierarchy used in measuring the fair value of
financial instruments should be disclosed if significant.
Although IAS 34 does not contain a detailed requirement to include sensitivity disclosures, if the range of reasonably
possible changes in key assumptions has significantly changed since the end of the last annual reporting period, an
update of relevant sensitivity disclosures may be required.
IAS 34.15A notes that a user of an entity’s interim financial report will have access to the most recent annual financial
report of that entity. Therefore, it is unnecessary for the notes to an interim financial report to provide relatively
insignificant updates to the information that was reported in the notes in the most recent annual financial report.
However, as most entities will be impacted by the Covid-19 pandemic, information in their last annual financial report

21 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements
may have changed significantly and, thus, entities may need to provide updated information on the impact on the entity
of the Covid-19 pandemic in their interim financial reporting.
While other standards specify disclosures required in a complete set of financial statements, if an entity’s interim
financial report includes only condensed financial statements as described in IAS 34.10, then the disclosures required
by those other standards are not mandatory. However, if disclosure is considered to be necessary in the context of
an interim report, those other standards provide guidance on the appropriate disclosures for many of these items.
In light of these requirements and depending on the entity-specific facts and circumstances, more detailed Covid-19
related disclosures may be required in condensed interim financial statements.

2.2. New standards, interpretations and amendments adopted by the Group IAS 34.16A(a)

The accounting policies adopted in the preparation of the interim condensed consolidated financial
statements are consistent with those followed in the preparation of the Group’s annual consolidated
financial statements for the year ended 31 December 2020, except for the adoption of new standards
effective as of 1 January 2021. The Group has not early adopted any standard, interpretation or amendment
that has been issued but is not yet effective.
Several amendments apply for the first time in 2021, but do not have an impact on the interim condensed
consolidated financial statements of the Group.

Commentary
The Group has prepared and presented interim condensed consolidated financial statements. IAS 34 requires an entity
to include a ‘description of the nature and effect of changes in accounting policies’ and disclosure of ‘the nature
and amount of changes in estimates of amounts reported in prior periods’. When determining how to best meet
the requirement to disclose the ‘nature and effect’ in condensed interim financial statements, the more specific
requirements applicable to annual financial statements may be considered in the assessment of how to best disclose
the nature and effect of the new standards (e.g., applying IAS 8.28).
These interim condensed consolidated financial statements include the disclosures required under IAS 8.28. Some of
the changes described may not be material to the Group, but were provided for illustrative purposes. Entities will need
to exercise judgement in determining the level of disclosures to include. The extent of disclosures will generally be
proportionate to the actual impact of the standard on initial application. The expectations of local regulators on the level
of detail in the disclosures must also be taken into account.

Good Group (International) Limited 22

Notes to the interim condensed consolidated financial statements

2. Basis of preparation and changes to the Group’s accounting policies continued

2.2. New standards, interpretations and amendments adopted by the Group continued
Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
The amendments provide temporary reliefs which address the financial reporting effects when an interbank
offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR).
The amendments include the following practical expedients:
• A practical expedient to require contractual changes, or changes to cash flows that are directly required
by the reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market
rate of interest
• Permit changes required by IBOR reform to be made to hedge designations and hedge documentation
without the hedging relationship being discontinued
• Provide temporary relief to entities from having to meet the separately identifiable requirement when
an RFR instrument is designated as a hedge of a risk component
These amendments had no impact on the interim condensed consolidated financial statements of the Group.
The Group intends to use the practical expedients in future periods if they become applicable.

Commentary
Generally, an entity may choose only to comment on those amendments that directly impact the condensed interim
financial statements. Alternatively, an entity may choose to provide disclosures on amendments to IFRS that have
no impact on the condensed interim financial statements, but are expected to impact the annual financial statements.
When considering the impact to the financial statements, IAS 8.28 indicates that an entity should consider whether the
amendment might impact future periods.
In some jurisdictions, the adoption of IFRS for reporting purposes may be subject to a specific legal process or
endorsement mechanisms (e.g., in the European Union (EU) or Australia). In such jurisdictions, the effective dates
may therefore differ from the IASB's effective dates.
IAS 8.30 requires entities to disclose in a complete set of financial statements those standards that have been issued
but are not yet effective and to provide known or reasonably estimable information to enable users to assess the
possible impact of the application of such IFRSs on an entity’s financial statements. There is no similar requirement
for the interim condensed financial statements. However, IAS 34 requires updates of relevant information presented
and disclosed in the most recent annual financial statements. Good Group has chosen not to disclose those standards
that have been issued but are not yet effective in its interim financial statements.

23 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

3. Revenue from contracts with customers

Set out below is the disaggregation of the Group’s revenue from contracts with customers: IAS 34.16A(l)
IFRS 15.114-115
For the six months ended 30 June 2021
Fire prevention
Segments equipment Electronics Total
Type of goods or service €000 €000 €000
Sale of fire prevention equipment 42,492 — 42,492
Sale of electronic equipment — 37,395 37,395
Installation services 8,578 — 8,578
Total revenue from contracts with customers 51,070 37,395 88,465
Geographical markets
Euroland 36,291 26,573 62,864
United States 14,779 10,822 25,601
Total revenue from contracts with customers 51,070 37,395 88,465
Timing of revenue recognition
Goods transferred at a point in time 42,492 37,395 79,887
Services transferred over time 8,578 — 8,578
Total revenue from contracts with customers 51,070 37,395 88,465

For the six months ended 30 June 2020

Fire prevention
Segments equipment Electronics Total
Type of goods or service €000 €000 €000
Sale of fire prevention equipment 41,941 — 41,941
Sale of electronic equipment — 22,058 22,058
Installation services 8,093 — 8,093
Total revenue from contracts with customers 50,034 22,058 72,092
Geographical markets
Euroland 35,104 15,476 50,580
United States 14,930 6,582 21,512
Total revenue from contracts with customers 50,034 22,058 72,092
Timing of revenue recognition
Goods transferred at a point in time 41,941 22,058 63,999
Services transferred over time 8,093 — 8,093
Total revenue from contracts with customers 50,034 22,058 72,092

The Group recognised impairment losses on receivables and contract assets arising from contracts with IFRS 15.113(b)
customers, included under Administrative expenses in the statement of profit or loss, amounting to €77,000
and €68,000 for the six months ended 30 June 2021 and 2020, respectively.

Good Group (International) Limited 24

Notes to the interim condensed consolidated financial statements

3. Revenue from contracts with customers continued

Set out below, is the reconciliation of the revenue from contracts with customers with the amounts disclosed in IFRS 15.115

the segment information:

For the six months ended 30 June

2021 2020
Fire Fire
prevention prevention
equipment Electronics equipment Electronics
Revenue €000 €000 €000 €000
External customer 70,925 37,395 86,605 22,058
Inter-segment — 1,845 — 4,094
70,925 39,240 86,605 26,152
Adjustments and eliminations (19,855) (1,845) (36,571) (4,094)
Total revenue from contracts with customers 51,070 37,395 50,034 22,058

Commentary
IAS 34.16A(l) requires disclosure of disaggregated revenue information, consistent with the requirement included in
IFRS 15.114-115.
The Group presented disaggregated revenue based on the type of goods or services provided to customers, the
geographical region, and the timing of transfer of goods and services. Entities will need to make this determination
based on entity-specific and/or industry-specific factors that would be most meaningful to their business.
The Group presented a reconciliation of the disaggregated revenue with the revenue information disclosed for each
reportable segment. Other entities may find it appropriate to provide disaggregated revenue information within the
segment reporting disclosures.

Covid-19 commentary
Entities may need to use significant judgement to determine the effect of uncertainties related to the Covid-19
pandemic on their revenue accounting, e.g., estimates of variable consideration (including the constraint) and provide
appropriate disclosures of these judgements. Decisions made in response to the outbreak (e.g., modifying contracts,
continuing transacting with customers despite collectability concerns, revising pricing) may trigger additional
disclosures.

25 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

4. Segment information
The following tables present revenue and profit information for the Group’s operating segments for the six
months ended 30 June 2021 and 2020, respectively:

Fire Adjustments
Six months ended prevention Investment Total and
30 June 2021 equipment Electronics properties segments eliminations Consolidated
€000 €000 €000 €000 €000 €000
Revenue
External customer 70,925 37,395 770 109,090 (19,855) 89,235 IAS 34.16A(g)(i)

Inter-segment − 1,845 − 1,845 (1,845) − IAS 34.16A(g)(ii)

Total revenue 70,925 39,240 770 110,935 (21,700) 89,235

Results
Segment profit 1,038 2,989 164 4,191 (1,927) 2,264 IAS 34.16A(g)(iii)

Fire Adjustments
Six months ended prevention Investment Total and
30 June 2020 equipment Electronics properties segments eliminations Consolidated
€000 €000 €000 €000 €000 €000
Revenue
External customer 86,605 22,058 715 109,378 (36,571) 72,807 IAS 34.16A(g)(i)

Inter-segment − 4,094 − 4,094 (4,094) − IAS 34.16A(g)(ii)

Total revenue 86,605 26,152 715 113,472 (40,665) 72,807

Results
Segment profit 3,375 1,330 176 4,881 (536) 4,345 IAS 34.16A(g)(iii)

The following table presents assets and liabilities information for the Group’s operating segments as at
30 June 2021 and 31 December 2020, respectively:

Fire Adjustments
prevention Investment Total and
equipment Electronics properties segments eliminations Consolidated
€000 €000 €000 €000 €000 €000
Assets
30 June 2021 65,773 50,482 16,978 133,233 4,602 137,835 IAS 34.16A(g)(iv)

31 December 2020 68,163 44,814 18,467 131,444 15,765 147,209

Liabilities
30 June 2021 30,251 7,002 4,234 41,487 34,377 75,864 IAS 34.16A(g)(iv)

31 December 2020 27,776 7,252 4,704 39,732 46,668 86,400

Good Group (International) Limited 26

Notes to the interim condensed consolidated financial statements

4. Segment information continued

Commentary
IAS 34.16A(g)(iv) requires disclosure of total assets and total liabilities where there has been a material change from the
total assets and total liabilities disclosed in the last annual consolidated financial statements, if this information is provided
to the chief operating decision maker (CODM) on a regular basis. To fulfil this requirement, the Group has disclosed segment
assets and liabilities at the end of the current period and at the end of the most recent annual financial year.
The Group has disposed of an entire operating segment in February 2021. IFRS 5 Non-current Assets Held for Sale and
Discontinued Operations clarifies that requirements of other standards do not apply to discontinued operations, unless they
specify disclosures applicable to them. IFRS 8 Operating Segments does not require such disclosures. Therefore, the Group
has not provided segment disclosures for the discontinued operations. If an entity believes that segment disclosures about a
discontinued operations will be relevant, it may do so.
The Group’s CODM regularly reviews the segment information related to the joint venture based on its proportionate share
of revenue, profits, assets and liabilities to make decisions about resources to be allocated to the segment and assess its
performance. However, as required by IFRS 11 Joint Arrangements, the Group’s interest in the joint venture is accounted
for in the interim condensed consolidated financial statements using the equity method. The eliminations arising on account
of differences between proportionate consolidation and the equity method are included under ‘Adjustments and eliminations’.

Adjustments and eliminations IFRS 8.28

Finance income, finance costs, taxes and fair value gains and losses on certain financial assets and liabilities
are not allocated to individual segments as these are managed on an overall group basis. These are included
in adjustments and eliminations in the segment disclosures.

For six months

ended 30 June
Reconciliation of profit 2021 2020 IAS 34.16A(g)(vi)

€000 €000
Segment profit 4,191 4,881
Finance income 204 166
Finance costs (1,662) (436)
Inter-segment profit/(elimination) (469) (266)
Profit before tax and discontinued operations 2,264 4,345

Seasonality of operations IAS 34.16A(b)

The electronics segment is a supplier of electronic equipment for defence, aviation, electrical safety markets
and consumer electronic equipment for home use. It offers products and services in the areas of electronics,
safety, thermal and electrical architecture. Due to the seasonal nature of this segment, higher revenues and
operating profits are usually expected in the second half of the year rather than in the first six months. Higher
sales during the period June to August are mainly attributed to the increased demand for aviation electronic
equipment during the peak holiday season, as well as in December, due to increased demand for electronic
equipment from private customers. This information is provided to allow for a better understanding of the
results, however, management has concluded that this is not ’highly seasonal’ in accordance with IAS 34.

Commentary
The business of the Group is seasonal and, therefore, the interim condensed financial statements include disclosure
under IAS 34.16A(b). However, the business is not regarded as highly seasonal. Therefore, the additional disclosure of
financial information for the twelve months up to the end of the interim period and comparative information for the prior
twelve-month period, encouraged in IAS 34.21, are not provided. If the business was regarded as ‘highly seasonal’, these
additional disclosures are recommended.

27 Good Group (International) Limited

 Notes to the interim condensed consolidated financial statements

5. Business combinations IAS 34.16A(i)

Acquisition of Electra Limited

On 1 June 2021, the Group acquired 100% of the voting shares of Electra Limited (Electra), an unlisted IFRS 3.59
IFRS 3.B64(a)
company based in Euroland that specialises in the manufacture of electronic equipment. The Group has
IFRS 3.B64(b)
acquired Electra because it expands both its existing product portfolio and customer base. The acquisition IFRS 3.B64(c)
has been accounted for using the acquisition method. The interim condensed consolidated financial IFRS 3.B64(d)
statements include the results of Electra for the one month period from the acquisition date.
The fair values of the identifiable assets and liabilities of Electra as at the date of acquisition were:

Fair value recognised IFRS 3.B64(i), (f)

on acquisition
€000
Assets
Property, plant and equipment (provisional)* 4,323
Right-of-use assets 248
Cash 642
Trade receivables 1,763
Inventories 961
Deferred tax asset 175
Patents 375
8,487
Liabilities
Trade payables (1,022)
Interest-bearing loans and borrowings (224)
Deferred tax liability (880)
(2,126)
Total identifiable net assets at fair value 6,361

Goodwill arising on acquisition (provisional)* 210

Purchase consideration transferred 6,571

Analysis of cash flows on acquisition:

Net cash acquired with the subsidiary (included in cash flows from investing activities) 642 IAS 7.39
Cash paid (6,571)
Net cash flow on acquisition (5,929)

*The valuation of land and buildings acquired had not been completed by the date the interim financial statements were
approved for issue by the Board of Directors. Thus, property, plant and equipment may need to be subsequently adjusted, IFRS 3.B67(a)
with a corresponding adjustment to goodwill prior to 1 June 2022 (one year after the transaction).

Reconciliation of the carrying amount of goodwill at the beginning and end of the reporting period is presented below:
Goodwill
€000
Gross carrying amount
At 1 January 2021 2,281 IFRS 3.B67(d)(i)

Acquisition of a subsidiary 210 IFRS 3.B67(d)(ii)

At 30 June 2021 2,491 IFRS 3.B67(d)(viii)

Accumulated impairment losses

At 1 January 2021 — IFRS 3.B67(d)(i)

Impairment losses recognised during the reporting period (Note 7) 1,541 IFRS 3.B67(d)(v)

At 30 June 2021 1,541 IFRS 3.B67(d)(viii)

Net book value

At 1 January 2021 2,281
At 30 June 2021 950

Good Group (International) Limited 28

Notes to the interim condensed consolidated financial statements

5. Business combinations continued IAS 34.16A(i)

At the date of the acquisition, the fair value of the trade receivables was €1,763,000. The carrying amount of IFRS 3.B64(h)
trade receivables is €1,775,000. The difference between the fair value and the carrying amount is the result
of discounting over the expected timing of the cash collection and an adjustment for counterparty credit risk.
The Group measured the acquired lease liabilities using the present value of the remaining lease payments at IFRS 3.28B
the date of acquisition. The right-of-use assets were measured at an amount equal to the lease liabilities and
adjusted to reflect the unfavourable terms of the lease relative to market terms.
From the date of acquisition, Electra has contributed €1,151,500 of revenue and €242,000 to the net profit IFRS 3.B64(q)(i)
before tax from the continuing operations of the Group. If the acquisition had taken place at the beginning of IFRS 3.B64(q)(ii)

the year, revenue from continuing operations would have been €110,073,000 and the profit from continuing
operations for the period would have been €3,181,000.
The goodwill recognised is primarily attributed to the expected synergies and other benefits from combining IFRS 3.B64(e)
IFRS 3.B64(k)
the assets and activities of Electra with those of the Group. The goodwill is not deductible for income tax
purposes.
Transaction costs of €90,000 have been expensed and are included in Administrative expenses in the IFRS 3.B64(m)
statement of profit or loss and are part of operating cash flows in the statement of cash flows.
Information on prior year acquisition
On 26 May 2020, the Group acquired 80% of the voting shares of Extinguishers Limited, an unlisted company
based in Euroland, specialising in the manufacture of fire-retardant fabrics. The consideration paid included
an element of contingent consideration. Refer to Note 12 for adjustments to the related liability in the current
period.

Commentary
IAS 34.16A(i) requires an entity to disclose all the information required by IFRS 3 in an interim financial report. This
requirement applies not only for those effected during the current interim period, but also to business combinations
after the reporting period but before the interim financial report is authorised for issue (IFRS 3.59(b), IFRS 3.B66).
According to IFRS 3 (IFRS 3.28B), lease liabilities of acquirees are to be measured at the present value of the remaining
lease payments as if the acquired lease is a new lease at the acquisition date. That is, the acquirer applies IFRS 16’s
initial measurement provisions using the present value of the remaining lease payments at the acquisition date.
Right-of-use assets are measured at an amount equal to the corresponding lease liabilities, adjusted to reflect the
favourable or unfavourable terms of the leases when compared with market terms. Because the off-market nature of
leases are captured in the right-of-use assets, the acquirer does not separately recognise intangible assets or liabilities
for favourable or unfavourable lease terms relative to market.
Information on business combinations in the comparative period is typically not necessary as it only repeats information
that was reported in the notes to the most recent annual financial statements. However, in some cases, it would
be necessary to provide information about business combinations in a comparative period if, for example, there is
a revision of previously disclosed fair values. The Group provided brief information about its business combination in
the comparative period as it is relevant to understanding the settlement of the contingent consideration in the current
period.

29 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

6. Discontinued operations IAS 34.16A(i)

On 1 October 2020, the Group publicly announced the decision of its Board of Directors to sell Hose Limited,
a wholly owned subsidiary. On 14 November 2020, the shareholders of the Company approved the plan
to sell. At 31 December 2020, Hose Limited was classified as a disposal group held for sale and as a
discontinued operation. The business of Hose Limited represented the entirety of the Group’s Rubber
Equipment operating segment until 14 November 2020. With Hose Limited being classified as discontinued
operations, the Rubber Equipment segment is no longer presented in the segment note. The sale of Hose
Limited was completed on 28 February 2021 for €1,000,000, resulting in a pre-tax gain of €885,000. The
results of Hose limited for the period are presented below:
For the six months
ended 30 June
2021* 2020 IFRS 5.33(b)(i)

€000 €000 IFRS 5.34

Revenue 3,329 21,548 IFRS 5.30

Expenses (3,285) (21,535) IFRS 5.41

Operating income 44 13
Finance costs (39) (43)
Profit/(loss) before tax from discontinued operations 5 (30)
Tax (expense)/benefit:
Related to current pre-tax profit/(loss) (2) 12 IAS 12.81(h)(ii)

Post-tax profit/(loss) of discontinued operations 3 (18) IFRS 5.33 (a)(i)

Gain on sale of the discontinued operations 885 — IFRS 5.33 (b)(iii)

Attributable tax expense (269) — IAS 12.81(h)(i)

Post-tax gain on the sale of discontinued operations 616 — IFRS 5.33 (a)(ii)

Profit/(loss) after tax for the period from discontinued operations 619 (18)
*Represents two months of activity prior to the sale on 28 February 2021.

The net cash flows generated from the sale of Hose Limited are, as follows:
€000
Cash received from sale of the discontinued operations 1,000
Cash sold as a part of discontinued operations (485)
Net cash inflow on date of disposal 515

IFRS 5.33(c)
The net cash flows generated/(incurred) by Hose Limited are, as follows:
For the six months
ended 30 June
2021* 2020
€000 €000
Operating 204 (1,055)
Financing 40 35
Net cash inflow/(outflow) 244 (1,020)

IAS 34.11
Earnings/(loss) per share: IAS 33.68
Basic, profit/(loss) for the year from discontinued operations €0.03 €(0.00)
Diluted, profit/(loss) for the year from discontinued operations €0.03 €(0.00)
*Represents two months of activity prior to the sale on 28 February 2021.
As Hose Limited was sold prior to 30 June 2021, the assets and liabilities classified as held for sale are no
longer included in the statement of financial position.

Good Group (International) Limited 30

Notes to the interim condensed consolidated financial statements

6. Discontinued operations continued IAS 34.16A(i)

Commentary
Condensed interim reporting under IAS 34 is based on the most recent annual financial statements. Providing
the disclosures required by the relevant standards (in this case, IFRS 5) for transactions and events occurring
after the end of the most recent annual financial statements, is consistent with that premise.
The Group elected to present earnings per share (EPS) from discontinued operations in the notes. Alternatively,
it could have presented those figures in the interim condensed consolidated statement of profit or loss.
The discontinued operations only had operating and financing cash flows for the first two months of 2021 and
the Group has presented these cash flows separately in the table above.

7. Impairment testing of goodwill and intangible assets with indefinite lives

The Group performed its annual impairment test in December and when circumstances indicated that the IAS 34.15B(b)
carrying value may be impaired. The Group’s impairment test for goodwill and intangible assets with indefinite IAS 36.134(c)

lives is based on value-in-use calculations. The key assumptions used to determine the recoverable amount
for the different cash generating units were disclosed in the annual consolidated financial statements for
the year ended 31 December 2020.
The Group considers the relationship between its market capitalisation and its book value, among other
factors, when reviewing for indicators of impairment. As at 30 June 2021, the market capitalisation of IAS 36.130(a),(d)

the Group was below the book value of its equity, indicating a potential impairment of goodwill. In addition,
the overall decline in construction and development activities around the world, as well as ongoing economic
uncertainty, have led to a decreased demand in the fire prevention equipment and electronics units. As a
result, management performed an impairment test as at 30 June 2021 for the electronics and fire prevention
IAS 36.130(e)
equipment segments, which are the cash generating units with goodwill. The investment property segment
did not have any goodwill.
Electronics cash-generating unit
The Group used the cash-generating unit’s value-in-use to determine the recoverable amount, which exceeded IAS 36.134(d)(iii)
the carrying amount. The projected cash flows were updated to reflect the decreased demand for products IAS 36.134(d)(iv)
IAS 36.134(d)(v)
and services and a pre-tax discount rate of 15.6% (31 December 2020: 15.5%) was applied. Cash flows IAS 36.130(g)
beyond the five-year period have been extrapolated using a 2.5% growth rate (31 December 2020: 3.0%).
All other assumptions remained consistent with those disclosed in the annual financial statements for the year
ended 31 December 2020. As a result of the updated analysis, management did not identify an impairment
for this cash-generating unit to which goodwill of €260,000 is allocated.
Fire prevention equipment cash-generating unit
The Group used the cash-generating unit’s value-in-use, as this is higher than fair value less costs of disposal, IAS 36.130 (e)
to determine the recoverable amount of €59,099,000. The projected cash flows were updated to reflect IAS 36.134(d)(iii)
IAS 36.134(d)(iv)
the decreased demand for products and services and a pre-tax discount rate of 15.5% (31 December 2020: IAS 36.134(d)(v)
14.4%) was applied. Cash flows beyond the five-year period have been extrapolated using a 2.6% growth rate IAS 36.126(a)
(31 December 2020: 4.1%). All other assumptions remained consistent with those disclosed in the annual IAS 36.130(g)

financial statements for the year ended 31 December 2020.

As a result of this analysis, management recognised an impairment charge of €1,541,000 against goodwill IAS 36.130(b)

previously carried at €2,231,000. The impairment charge is recorded within administrative expenses in
the statement of profit or loss.
Sensitivity to changes in assumptions
With regard to the assessment of value-in-use of the electronics unit, there are no significant changes to the IAS 36.134(f)
sensitivity information disclosed in the annual consolidated financial statements for the
year ended 31 December 2020.
For the fire prevention equipment unit, the estimated recoverable amount is equal to its carrying value. IAS 36.134(f)(i)

Consequently, any adverse change in a key assumption could result in a further impairment loss. The key
assumptions for the recoverable amount are discussed below:
Growth rate assumptions — Rates are based on published industry research. These have been updated for
the current economic outlook. The revised growth rate of 2.6% reflects the effect of a significant industry
patent that was acquired during the year ended 31 December 2020. However, given the economic
uncertainty, reductions in growth estimates may be necessary in the future.

31 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

7. Impairment testing of goodwill and intangible assets with indefinite lives continued
Discount rate — The discount rate has been adjusted to reflect the current market assessment of the risks
specific to the fire prevention equipment unit, and was estimated based on the weighted average cost of
capital for the Group. This rate was further adjusted to reflect the market assessment of risks specific to
the fire prevention equipment unit for which future estimates of cash flows have not been adjusted. Further
changes to the discount rate may be necessary in the future to reflect changing risks for the industry and
changes to the weighted average cost of capital.

Commentary
Under IAS 34.15B(b), the recognition of a loss from impairments and the reversal of such impairments is required to
be disclosed ’if they are significant for the understanding of the financial position and the performance of the entity’.
The content and format of such disclosures are not specified. There is no explicit requirement to disclose headroom
in the event of reasonably possible impairments (as in IAS 36.134(f)), but an entity may be required to provide
such disclosures ”if significant to an understanding of the changes since the end of the last annual reporting period”
(IAS 34.15).
For instance, for impairment in the fire prevention equipment cash generating unit, the Group has chosen to provide
disclosures generally in accordance with IAS 36 Impairment of Assets. Additional sensitivity disclosures have not been
provided by the Group since the estimated recoverable amount, after recognition of the impairment loss in the current
period, is equal to the carrying value, so any adverse change in assumptions could result in an impairment loss.
If no impairment charge was recognised for a cash-generating unit, but it is believed that a reasonably possible change
in the key assumptions may lead to an impairment sensitivity disclosures similar to those required by IAS 36 may be
appropriate. Even though IAS 34 does not specifically require sensitivity disclosures, IAS 34.15 requires disclosure of
significant events.
Furthermore, considering the decline in the relevant markets and the current economic uncertainties, the Group
has found it useful to provide additional information about the impairment tests performed for the electronics cash
generating unit. These disclosures are based on the requirement in IAS 36.134 applicable in the case of complete
interim financial statements.
Impairments of goodwill in interim periods cannot be reversed by a subsequent impairment test later in the annual
reporting period (paragraph 8 of IFRIC 10 Interim Financial Reporting and Impairment)

Covid-19 commentary
As the current environment is uncertain, it is important that entities provide detailed disclosure of the assumptions
made, the evidence they are based on and the impact of a change in the key assumptions (sensitivity analysis). This will
equally apply to impairment tests performed at an interim date.
Given the inherent level of uncertainty and the sensitivity of judgements and estimates, disclosures of the key
assumptions used, and judgements made in estimating recoverable amounts will be important.
It is likely that the Covid-19 pandemic continues to be a trigger that requires an entity to perform an impairment test in
accordance with IAS 36. Entities will need to assess the key assumptions used to determine the recoverable amount for
the different CGUs. Key inputs to both the value in use and the fair value less cost of disposal models used to undertake
the impairment assessment should be reassessed to factor in any impact.

8. Income tax

The Group calculates the period income tax expense using the tax rate that would be applicable to the IAS 34.16A(c)

expected total annual earnings. The major components of income tax expense in the interim condensed
consolidated statement of profit or loss are:
For the six months
ended 30 June
2021 2020
€000 €000
Income taxes
Current income tax expense 249 934
Deferred income tax expense relating to origination and reversal of temporary
differences 140 260
Income tax expense recognised in statement of profit or loss 389 1,194

Good Group (International) Limited 32

Notes to the interim condensed consolidated financial statements
8. Income tax continued

Commentary
IAS 34.16A(c) requires the Group to disclose the nature and amount of items affecting net income that are unusual
because of their nature, size or incidence. The Group has disclosed the major components of its income tax expense
as this provides useful information to understand the amount reported in the interim condensed consolidated statement
of profit or loss.

Covid-19 commentary
As a measure to assist entities during the Covid-19 pandemic, economic stimulus packages in some jurisdictions have
included income tax concessions and other rebates. If entities are active in such a jurisdiction, the following disclosures
may also be required, especially if there are significant changes from the annual financial statements:
• An explanation of changes in the applicable tax rate compared to the prior period
• The amount and expiry date of any tax losses carried forward
• The nature of evidence supporting the recognition of deferred tax assets when the entity has suffered a loss in the
current period
The requirements of IAS 34.30(c) allow that income tax expense is recognised in each interim period based on the best
estimate of the weighted average annual income tax rate expected for the full financial year. The method applied to
estimate this tax expense including the uncertainty of this estimate caused by the Covid-19 pandemic may need to be
disclosed.
Business disruption resulting from the Covid-19 pandemic may lead to an entity recognising asset impairments or
forecasting future losses. These circumstances may introduce new uncertainties that an entity must consider in its
analysis of the recoverability of deferred tax assets. Entities should update their projections of income for recent events.
Tax losses that were otherwise expected to be utilised in the near term should be reviewed to determine if they might
expire unutilised and how this would impact management's judgement on the amount of deferred tax asset to be
recognised. Entities should further consider whether they need to provide additional disclosures to more fully explain
the use of estimates or management's judgement in reaching its conclusions on the amount of unrecognised deferred
tax assets. Such judgements may include whether the tax laws were substantively enacted as of the reporting date, and
the determination of the accounting for income tax credits.
In applying judgement, entities should consider IFRIC 23 Uncertainty over Income Tax Treatments. Although IFRIC 23
was not specifically developed to deal with a scenario such as the Covid-19 pandemic, it, nonetheless, provides helpful
guidance to consider in accounting for the uncertainties that exist with respect to the application of complex tax
legislation that was newly issued in response to the pandemic. It requires an entity to consider whether it is probable
that a taxation authority will accept an uncertain tax treatment. If the entity concludes that the position is not probable
of being accepted, the effect of the uncertainty needs to be reflected in the entity’s accounting for income taxes.

33 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

9. Components of other comprehensive income

For the six months

ended 30 June
2021 2020
€000 €000
Cash flow hedges:
Gains/(losses) arising during the period
Currency forward contracts (6) 40
Commodity futures contract (334) −
(340) 40

Debt instruments at fair value through OCI IFRS 7.20(a)(viii)

Gains arising during the period 16 78
Share of other comprehensive income of an associate (10) −
Impairments included in the statement of profit or loss 6 4 IAS 1.92
12 82

For the six months

ended 30 June
Deferred tax related to items recognised in OCI during the period: 2021 2020 IAS 1.90
€000 €000
Cash flow hedges:
Gains/(losses) arising during the period 102 (18)

Debt instruments at fair value through OCI

Gains arising during the period (4) (24) IFRS 7.20(a)(viii)
(2) (1) IAS 1.92
Reclassification adjustments for losses included in the statement of profit or loss
(6) (25)

Deferred tax credited/(charged) to OCI 96 (37)

Commentary
Condensed interim reporting under IAS 34 is intended to provide an update on the most recent annual financial
statements. The provision of disclosures required by the relevant standards (in this case, IAS 1) in the condensed interim
financial statements in response to transactions and events occurring after the most recent annual financial statements,
is consistent with this premise. An analysis of the items in other comprehensive income does not always need to be
provided; the decision must be assessed on a case-by-case basis. The need for the inclusion of such disclosures in interim
financial statements is debatable. They have, nevertheless, been included here for illustrative purpose.
The purpose of Note 9 is to provide an analysis of items presented net in other comprehensive income in the statement
of comprehensive income. This analysis does not apply to the other items of other comprehensive income, as they are
either not reclassified to profit or loss or reclassification adjustments did not occur during the period. The Group decided
to present the movements on a pre-tax basis with related tax effects in a separate table to enhance readability. Other
forms of presentation of the gross movements and related tax effects would be acceptable.

10. Property, plant and equipment

Acquisitions and disposals
During the six months ended 30 June 2021, the Group acquired assets with a cost of €2,587,000 (30 June IAS 34.15B(d)
2020: €1,320,000), excluding property, plant and equipment acquired through a business combination (see
Note 5) and property under construction.
The Group also commenced construction of a new corporate headquarters in February 2021. This project
is expected to be completed in February 2022 and the carrying amount at 30 June 2021 was €1,500,000
IAS 23.26(a)
(31 December 2020: €Nil). The amount of borrowing costs capitalised during the six months ended 30 June IAS 23.26(b)
2021 was approximately €151,000 (30 June 2020: €Nil). The weighted average rate used to determine the
amount of borrowing costs eligible for capitalisation was 11%, which is the effective interest rate of the specific
borrowing.

Good Group (International) Limited 34

Notes to the interim condensed consolidated financial statements

10. Property, plant and equipment continued

Assets (other than those classified as held for sale) with a net book value of €1,299,000 were disposed
by the Group during the six months ended 30 June 2021 (30 June 2020: €1,410,000), resulting in a net
gain on disposal of €53,000 (30 June 2020: €5,000).
See Note 16 for capital commitments.

Commentary
In accordance with IAS 34.15B(d), the Group has disclosed the acquisitions and disposals of property, plant and
equipment during the interim period, as they are significant to an understanding of the changes in financial position
and financial performance during the interim period.

Covid-19 commentary
Many entities will have to assess property, plant and equipment for impairment for the purpose of interim reporting.
Entities may need to update their assumptions about the future use of an asset, specifically the remaining useful life and
residual values. Property, plant and equipment may be under-utilised or idled for a period, which may lead entities to
change plans and require a reassessment of the useful life estimates used in the depreciation calculations. Additionally, a
weak economy may affect the residual value of property, plant and equipment that will also need to be included in any
estimates of depreciation expense.

11. Inventories

During the six months ended 30 June 2021, the Group wrote down €700,000 (30 June 2020: €567,000) of IAS 34.15B(a)

inventories that had been damaged by flooding. This expense is included in other operating expenses in the
IAS 37.33
statement of profit or loss. The financial loss resulting from the flooding is likely to be covered by the Group’s
insurance policy. However, as at 30 June 2021, the insurance company’s investigations were still ongoing.
Consequently, it is not virtually certain that the Group will receive the proceeds under the insurance policy.

Commentary
In accordance with IAS 34.15B(a), the Group has disclosed the write-down of inventory as it is significant to understanding
the financial performance of the Group during the interim period.

Covid-19 commentary
Inventories might need to be written down to their net realisable value because of reduced movement in inventory, lower
commodity prices, or inventory obsolescence due to lower-than-expected sales. IAS 2 Inventories requires that fixed
production overheads are included in the cost of inventory based on normal production capacity. Reduced production might
affect the extent to which overheads can be included in the cost of inventory.

35 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities

Set out below, is an overview of financial assets, other than cash and short-term deposits, held by the Group as IAS 34.16A(c)

at 30 June 2021 and 31 December 2020:

30 June 2021 31 December 2020 IFRS 7.6

€000 €000 IFRS 7.8
Debt instruments at amortised cost:
Trade and other receivables 27,374 25,672
Loan to an associate 253 200
Loan to directors 10 13
Debt instruments at fair value through OCI
Quoted debt instruments 1,809 1,622
Equity instruments at fair value through OCI
Non-quoted equity investments 938 1,038
Financial assets at fair value through profit or loss
Quoted equity investments 524 337
Derivatives not designated as hedging instruments
Foreign exchange forward contracts 1,100 640
Embedded derivatives 161 210
Derivatives designated as hedging instruments
Foreign exchange forward contracts 242 252
Total 32,411 29,984

Total current 28,127 26,223

Total non-current 4,284 3,761

Good Group (International) Limited 36

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

Set out below is an overview of financial liabilities held by the Group as at 30 June 2021 and 31 December 2020:

30 June 2021 31 December 2020

€000 €000

Derivatives not designated as hedging instruments

Foreign exchange forward contracts 1,073 720
Embedded derivatives 764 782
Derivatives designated as hedging instruments
Foreign exchange forward contracts 194 170
Commodity futures contract 913 —
Commodity forward contract — 980
Interest rate swaps — 35
Financial liabilities at fair value through profit or loss
Contingent consideration — 1,072
Financial liabilities at amortised cost:
Trade and other payables 22,385 16,969
Other long-term payable 96 —
Non-current interest bearing loans and borrowings
Lease liabilities 2,736 2,537
8% debentures 3,274 3,374
8.25% secured loan of USD3,600,000 2,146 2,246
Secured bank loan 4,379 3,479
Other non-current loans
€2,750,000 bank loan 2,386 2,486
€2,200,000 bank loan 1,978 2,078
Loan from a third-party investor in Fire Equipment Test Lab
Limited 2,900 3,000
Convertible preference shares 2,678 2,778
Current interest bearing loans and borrowings
Lease liabilities 467 434
Bank overdrafts 900 966
Other current loans
€1,500,000 bank loan 1,392 1,411
Total 50,661 45,517

Total current 23,283 22,480

Total non-current 27,378 23,037

Commentary
The Group determined that financial instruments, in general, and its hedge instruments, in particular, are relevant and
significant for the users of its financial statements. Therefore, the Group has included the above disclosure in the interim
condensed consolidated financial statements, as per IAS 34.16A(c), to provide an overview of the financial instruments
held by the Group.

37 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

Contingent consideration
As part of the purchase agreement with the previous owners of Extinguishers Limited, dated 26 May 2020 IFRS 13.93(h)(ii)

(see Note 5), a portion of the consideration was determined to be contingent, based on the performance of
the acquired entity.
As at 31 December 2020, the key performance indicators of Extinguishers Limited showed that it was highly
probable that the target would be achieved due to a significant expansion of the business and the synergies
realised. The fair value of the contingent consideration determined at 31 December 2020 reflected this
development, amongst other factors and a fair value adjustment was recognised through profit or loss.
At 30 April 2021, a total of €1,125,000 was paid out under this arrangement. A reconciliation of the fair
value of the contingent consideration liability is provided below:
€000
Initial fair value of the contingent consideration at acquisition date 714 IFRS 13.93(e)

Unrealised fair value changes recognised in profit or loss during year ended 31 December 2020 358 IFRS 13.93(f)

Financial liability for the contingent consideration as at 31 December 2020 1,072

Fair value adjustment as at 30 April 2021 53
Total consideration paid 1,125 IAS 34.16A(i)

Adjustments to the contingent liability from acquisition on 26 May 2020 to the date it was settled on 30 April
2021 were recognised in the statement of profit or loss. The initial fair value of the consideration of €714,000
was included in cash flows from investing activities, the remainder, €411,000, has been recognised in cash
flows from operating activities. The fair value is determined using the discounted cash flow (DCF) method.
The fair value of the contingent consideration liability increased due to improved performance of Extinguishers
Limited compared to the initial forecast.

Commentary
As required by IAS 34.16A(i), the Group has made disclosures about the contingent consideration liability incurred on
the business combination in 2020.
The Group has split the settlement of this contingent consideration liability in the statement of cash flows. The payment of
the acquisition date fair value was classified as a cash flow from investing activities, while the additional payment, which
was dependent on meeting performance targets was classified as a cash flow from operating activities. Under paragraph 16
of IAS 7 Statement of Cash Flows, only expenditures that result in a recognised asset in the statement of financial position
are eligible for classification as investing activities. Therefore, cash payments for any contingent consideration in excess of
the amount recorded on the acquisition date is not classified as investing activities because that incremental amount was not
necessary to obtain control and was not recognised as an asset.

Covid-19 commentary
Entities may obtain additional financing, amend the terms of existing debt agreements or obtain waivers if they no longer
satisfy debt covenants. In such cases, they will need to consider the guidance provided in IFRS 9 to determine whether
any changes to existing contractual arrangements represent a substantial modification or, potentially, a contract
extinguishment, which would have accounting implications in each case. Entities need to determine whether a breach of
covenants will require non-current liabilities being reclassified as current liabilities in the interim financial statements.

Good Group (International) Limited 38

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

Risk management activities
Cash flow hedges for currency risks
During the period, the Group designated foreign currency forward contracts as hedges of highly probable IAS 34.16A(c)
purchases of fixed assets in US dollars (USD) and British pounds sterling (GBP) from suppliers in the United
States and the United Kingdom, respectively. The forecast purchases are expected to occur in October and
December 2021.
The terms of the foreign currency forward contracts have been negotiated to match the terms of the forecast
transactions. Both parties to the contract have fully cash-collateralised the foreign currency forward contracts,
and, therefore, effectively eliminated any credit risk associated with the contracts (both the counterparty’s
and the Group’s own credit risk).
As at 30 June 2021, an unrealised gain of €12,000 relating to the USD forward contracts and an unrealised
loss of €18,000 related to the GBP forward contracts are included in other comprehensive income.
Cash flow hedges for copper price risks
In January 2020, the Group entered into a firm commitment to purchase copper in September 2021. In order
to reduce the exposure to fluctuations in the copper price, the Group also entered into an exchange-traded
copper futures contract. The futures contract is designated in a cash flow hedge of the firm commitment.
The copper futures contract is based on the price of a copper benchmark quality that is different from the
copper quality the Group is committed to purchase (i.e., there is basis risk). Consequently, ineffectiveness
arises in this hedging relationship. As of 30 June 2021, the fair value of the copper futures contract was
€913,000, while the cumulative change in the fair value of the firm commitment from inception amounted
to €956,000. As the fair value of the copper futures contract exceeded the cumulative change in the fair
value of the firm commitment, the Group recorded a loss for the period of €334,000 in other comprehensive
income while ineffectiveness of €43,000 remains unrecognised. The ineffectiveness is due to the basis risk
between the copper futures contract and the firm commitment, as well as the change in the Group’s own
credit risk.

Commentary
The Group’s accounting policy is to designate all of the forward contracts as a hedging instrument. Under IFRS 9.6.4(b),
an entity may separate the forward element and spot element of a forward contract and designate as the hedging
instrument only the change in the value of the spot element. In such cases, the forward element is recognised in OCI
and accumulated in a separate component of equity under cost of hedging reserve. Refer to Good Group (International)
Limited 31 December 2020 for illustration of this approach.

Hedge of net investments in foreign operations

Included in loans as at 30 June 2021 was a borrowing of US$3,600,000, which is designated as a hedge
of the net investments in the United States subsidiaries, Wireworks Inc. and Sprinklers Inc., which have
the USD as their functional currency. During the six months ended 30 June 2021, an after tax gain of
€192,000 on the translation of this borrowing was transferred to other comprehensive income to offset
the losses on translation of the net investments in the subsidiaries. There is no ineffectiveness in the period
ended 30 June 2021.
Other risk management activities
As a result of its international activities, the Group is exposed to foreign currency risk on part of its sales
and purchases. In order to reduce this risk, the Group regularly determines its net exposure to the primary
currencies (USD, GBP and Canadian dollar (CAD)) based on its predicted sales and purchases over the
next 18 months. The Group then enters into foreign currency forward contracts to hedge those exposures.
For operational reasons, the Group decided not to designate the foreign currency forward contracts
as hedge accounting relationships. Consequently, all changes in the fair values of such foreign currency
forward contracts are recognised in the statement of profit or loss.
The six months ended 30 June 2021 experienced volatility in the euro exchange rates against the
USD and the GBP, resulting in losses on related foreign currency forward contracts recorded in Finance
costs. These losses are, to some extent, compensated by higher revenues and lower cost of sales.

39 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

Commentary
The Group determined the risk management activities as relevant and significant for the users of its financial statements.
Therefore, the Group has included the above disclosure in the interim financial statements, as per IAS 34.16A(c). These
disclosures will vary depending on the nature of the entity.

Covid-19 commentary
Hedging
Under the current circumstances, an entity’s transactions may be postponed or cancelled, or occur in significantly lower
volumes than initially forecast. If the entity designated such transactions as a hedged forecast transaction in a cash flow
hedge, it would need to consider whether the transaction was still a ‘highly probable forecast transaction’.
That is, if the Covid-19 pandemic affects the probability of hedged forecast transactions occurring and/or the time period
designated at the inception of a hedge, an entity would need to determine whether it can continue to apply hedge
accounting to the forecast transaction or a proportion of it, and for continuing hedges whether any additional
ineffectiveness has arisen.
If an entity determines that a forecast transaction is no longer highly probable, but still expected to occur, the entity must
discontinue hedge accounting prospectively.
If an entity determines that the timing of a forecast transaction has changed, and the cash flows are now expected to
occur at a different time than initially forecast, the outcome would depend on the nature of the hedged item and how the
hedge relationship was documented and judgement will be needed in considering the appropriate accounting treatment.
If an entity determines that a forecast transaction is no longer expected to occur, in addition to discontinuing hedge
accounting prospectively, it must immediately reclassify to profit or loss any accumulated gain or loss on the hedging
instrument that has been recognised in other comprehensive income.

Good Group (International) Limited 40

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

Fair values
Set out below, is a comparison of the carrying amounts and fair values of financial assets and financial liabilities IAS 34.16A(j)

as at 30 June 2021 and 31 December 2020:

30 June 2021 31 December 2020

Carrying Carrying
amount Fair value amount Fair value IFRS 7.25
€000 €000 €000 €000 IFRS 7.26

Financial assets:
Loans 263 252 213 209
Non-quoted equity investments 938 938 1,038 1,038
Quoted equity investments 524 524 337 337
Quoted debt instruments 1,809 1,809 1,622 1,622
Foreign exchange forward contracts in
cash flow hedges 242 242 252 252
Foreign exchange forward contracts 1,100 1,100 640 640
Embedded derivatives 161 161 210 210
Total 5,037 5,026 4,312 4,308

Financial liabilities:
Interest bearing loans and borrowings
Floating rate borrowings 13,181 13,131 12,666 12,616
Fixed rate borrowings 6,174 5,924 6,374 6,371
Convertible preference shares 2,678 2,568 2,778 2,766
Contingent consideration — — 1,072 1,072
Other long-term payable 96 94 — —
Derivatives in effective hedges 1,107 1,107 1,185 1,185
Derivatives not designated as hedges
Embedded commodity derivatives — — 782 782
Embedded foreign exchange
derivatives 764 764 — —
Interest rate swaps — — 35 35
Foreign exchange forward contracts 1,073 1,073 685 685
Total 25,073 24,661 25,577 25,512

Commentary
IAS 34.16A(j) requires the Group to disclose information about the fair values for each class of financial assets
and financial liabilities as set out in IFRS 7.25, 26, 28 and 30 in a way that permits it to be compared with its
carrying amount. As per IFRS 7.29, fair value disclosures are not required when the carrying amount is a reasonable
approximation of fair value (e.g., short-term trade receivables and payables), or for a contract containing discretionary
participation features (as described in IFRS 4 Insurance Contracts) if the fair value of those features cannot be measured
reliably or lease liabilities. The Group does not provide the disclosures required by IFRS 7.28 as the fair values of all the
financial assets and financial liabilities recognised during the period were not different from the transaction prices at the
date of initial recognition.

41 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

The following table provides the fair value measurement hierarchy of the Group’s financial assets and financial
liabilities as at 30 June 2021:
Fair value measurement using
Quoted prices Significant Significant IFRS 13.93(a),(b)
in active observable unobservable IFRS 13.94

markets inputs inputs

As at 30 June 2021: Total (Level 1) (Level 2) (Level 3)
Financial assets measured at fair value: €000 €000 €000 €000
Derivative financial assets
Foreign exchange forward contracts – USD 742 — 742 —
Foreign exchange forward contracts – GBP 600 — 600 —
Embedded foreign exchange derivatives – CAD 161 — — 161
Quoted equity investments
Power sector 474 474 — —
Telecommunication sector 50 50 — —
Financial assets at fair value through OCI
Non-quoted equity investments
Power sector 625 — — 625
Electronics sector 313 — — 313
Quoted debt instruments
Euroland government bonds 1,554 1,554 — —
Corporate bonds – consumer products sector 95 95 — —
Corporate bonds – technology sector 160 160 — —
Financial liabilities measured at fair value:
Derivative financial liabilities
Foreign exchange forward contracts – GBP 1,267 — 1,267 —
Embedded foreign exchange derivatives – USD 764 — — 764
Commodity futures contract 913 913 — —

Commentary
IAS 34.16A(j) requires disclosures about fair values of financial instruments as set out in paragraphs 91-93(h), 94-96,
98 and 99 of IFRS 13 Fair Value Measurement.
Under IFRS 13.91, an entity is required to disclose information that helps users of the financial statements to assess:
• The valuation techniques and inputs used to develop the fair value measurements for assets and liabilities measured
at fair value on a recurring and non-recurring basis after initial recognition
• The effect of fair value measurements on profit or loss or other comprehensive income for recurring fair value
measurements using unobservable inputs (Level 3)
To meet this objective, IFRS 13.92 states that an entity needs to consider the level of detail necessary to satisfy the
disclosure requirements, how much emphasis to place on each of the various requirements, how much aggregation
to undertake and whether users of the financial statements need additional information to evaluate the quantitative
information disclosed.
The Group has provided the disclosures required by IAS 34.16A(j) in this section of the notes. The information for the
comparative period was not provided as this is available in the annual financial statements for 2020. In addition, certain
disclosures, like the description of the valuation processes (IFRS 13.93(g)) and the valuation techniques and the inputs
used (IFRS 13.93(d)) have not been provided in this note. These disclosures are also available in the annual financial
statements for 2020 and the Group elected to just state in this note that there were no changes during the interim period.
IFRS 13.99 requires an entity to present the quantitative disclosures of IFRS 13 to be included in a tabular format,
unless another format is more appropriate. The Group included the quantitative disclosures in a tabular format.

Good Group (International) Limited 42

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

Reconciliation of recurring fair value measurements categorised within Level 3 of the fair value hierarchy: IFRS 13.93(e)

Non-quoted equity investments

Power Electronics Total
€000 €000 €000
As at 1 January 2021 675 363 1,038
Remeasurement recognised in OCI (125) (135) (260)
Purchases 95 130 225
Sales (20) (45) (65)
As at 30 June 2021 625 313 938

Embedded foreign Embedded commodity

exchange derivative derivative
Asset Liability Liability
CAD USD Brass Chrome
€000 €000 €000 €000
As at 1 January 2021 210 — 600 182
Purchases — 55 — —
Sales (166) (83) (57) (16)
Net unrealised loss recognised in statement of profit
or loss 117 792 (543) (166)
As at 30 June 2021 161 764 — —

There were no transfers between Level 1 and Level 2 fair value measurements during the period, and no IAS 34.15B(k)
IFRS 13.91(b)
transfers into or out of Level 3 fair value measurements during the six months ended 30 June 2021.
IFRS 13.93(c),(f)
The fair value decrease on financial instruments categorised within Level 3 of €66,000 (31 December 2020: IFRS 13.93(e)(ii)
€38,000), was recorded in the statement of profit or loss. IFRS 13.93(e)(iv)

Fair value hierarchy IAS 34.16A(j)

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value IFRS 13.93(b)
hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole, as
follows:
Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable
For assets and liabilities that are recognised at fair value on a recurring basis, the Group determines whether IFRS 13.95
transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest
level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
There were no changes in the Group’s valuation processes, valuation techniques, and types of inputs used in IFRS 15.93(b)
the fair value measurements during the period. IFRS 13.93(g)

43 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

12. Financial assets and financial liabilities continued

IFRS 13.93(d)
Set out below are the significant unobservable inputs to valuation as at 30 June 2021: IFRS 13.93(h)(i)
IFRS 13.93(h)(ii)

Valuation Significant Range Sensitivity of the input

technique unobservable inputs (weighted average) to fair value
Non-quoted equity DCF method Long-term growth 3.1% - 5.2% 5% increase/(decrease) in the
investments − power rate for cash flows for (4.2%) growth rate would result in
sector subsequent years increase/(decrease) in fair
value by €15,000
Long-term operating 5.0% - 12.1% 15% increase/(decrease) in the
margin (8.3%) margin would result in increase/
(decrease) in fair value by
€20,000
WACC 11.2% - 14.3% 1% increase/(decrease) in the
(12.6%) WACC would result in decrease/
(increase) in fair value by
€12,000
Discount for lack of 5.1% - 15.6% Increase/(decrease) in the
marketability (12.1%) discount would decrease/
(increase) the fair value.

Non-quoted equity DCF method Long-term growth 4.4% - 6.1% 3% increase/(decrease) in the
investments − rate for cash flows for (5.3%) growth rate would result in
electronics sector subsequent years increase/(decrease) in fair
value by €21,000
Long-term operating 10.0% - 16.1% 5% increase/(decrease) in the
margin (14.3%) margin would result in increase/
(decrease) in fair value by
€11,000
WACC 12.1% - 16.7% 1% increase/(decrease) in the
(13.2%) WACC would result in decrease/
(increase) in fair value by
€23,000
Discount for lack of 5.1% - 20.2% Increase/(decrease) in the
marketability (16.3%) discount would decrease/
(increase) the fair value.

Embedded derivative Forward Discount on 0.02% - 0.05% Increase/(decrease) in the

assets pricing model counterparty credit (0.04%) discount would decrease/
risk (increase) the fair value.

Embedded derivative Forward Discount on non- 0.01% - 0.05% Increase/(decrease) in the

liabilities pricing model performance risk (0.03%) discount would decrease/
(increase) the fair value.

Discount for lack of marketability represents the amounts that the Group has determined that market
participants would take into account when pricing the investments.

Good Group (International) Limited 44

Notes to the interim condensed consolidated financial statements

13. Cash and short-term deposits IAS 34.16A(c)

For the purpose of the interim condensed statement of cash flows, cash and cash equivalents are comprised of IAS 7.45
the following:

30 June 2021 31 December 2020

€000 €000
Cash at bank and in hand 12,323 11,316
Short-term deposits 3,496 5,798
Total cash and short-term deposits 15,819 17,114
Bank overdraft (900) (966)
Cash at bank and in hand attributable to discontinued operations — 551
Total cash and cash equivalents 14,919 16,699

Commentary
The interim condensed consolidated financial statements are based on the most recent annual financial statements. The
provision of the disclosures required by the relevant standards (in this case, IAS 7) in the interim condensed consolidated
financial statements in response to transactions and events occurring after the end of the most recent annual financial
statements, is consistent with that premise.
The Group has disclosed the breakdown of the cash and cash equivalent balance as it provides further useful information
for the statement of cash flows.

14. Reversal of restructuring provision

As at 31 December 2020, a restructuring provision of €466,000 had been recognised for the elimination IAS 34.15B(c)

of certain product lines of Extinguishers Limited. Expenditures of €200,000 to complete the restructuring
in February 2021 were charged against the provision and the remaining unused amount of €266,000 was
reversed and is included within other operating expenses in the statement of profit or loss where the creation
of the provision was initially recorded. The reversal arises from contract termination costs being lower than
expected.

15. Share-based payments

In March 2021, 450,000 share options were granted to senior executives under the Senior Executive Plan IAS 34.16A(c)
(SEP). The exercise price of the options of €3.45 was equal to the market price of the shares on the date of
grant. The options vest if the Group’s basic EPS increases by 10% within three years from the date of grant
and the senior executive is still employed on such date. If this increase is not met, the options lapse. The fair
value at grant date is estimated using a binomial pricing model, taking into account the terms and conditions
upon which the options were granted. The contractual life of each option granted is five years. There is no
cash settlement of the options. The fair value of options granted during the six months ended 30 June 2021
was estimated on the date of grant using the following assumptions:
Dividend yield (%) 3.55
Expected volatility (%) 15.50
Risk-free interest rate (%) 5.15
Expected life of share options (years) 3.75
Weighted average share price (€) 3.45
The weighted average fair value of the options granted during the six months ended 30 June 2021 was €1.35
(year ended 31 December 2020: €1.32).
For the six months ended 30 June 2021, the Group has recognised €203,000 of share-based payment
expense in the statement of profit or loss (30 June 2020: €150,000).

45 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements
15. Share-based payments continued

Commentary
In accordance with IAS 34.16A(e), the Group has disclosed the number of share options granted to senior executives
for the six months ended 30 June 2021 together with the terms of the options, as this is considered to be a significant
event impacting the results for the period and gives an understanding of the impact for future periods. Entities should
also update the information on changes to existing plans made in the period if that provides information relevant for
understanding the plans.

16. Commitments and contingencies

Legal claims contingency
In March 2021, an overseas customer commenced a legal action against the Group in respect of equipment IAS 34.15B(m)

sold that is claimed to be defective. Should the action against the Group be successful, the estimated loss is
€850,000. A trial date has been scheduled for 4 September 2021. The Group has been advised by its legal
advisers that it is possible, but not probable, that the customer will succeed. Accordingly, no provision for
any liability has been made in these financial statements.
Commitments
At 30 June 2021, the Group had capital commitments of €1,610,000 (31 December 2020: €2,310,000) IAS 34.15B(e)
relating to the completion of the operating facilities of Sprinklers Inc. and commitments of €300,000
(31 December 2020: €310,000) in relation to the trade purchase commitments by the joint venture in
which the Group holds an interest.

17. Related party disclosures

The following table provides the total amount of transactions that have been entered into with related parties IAS 34.15B(j)

during the six months ended 30 June 2021 and 2020, as well as balances with related parties as at 30 June 2021
and 31 December 2020:
Purchases Amounts Amounts
Sales to from owed by owed to
related related related related
parties parties parties parties
€000 €000 €000 €000
Entity with significant influence over the Group:
International Fires P.L.C. 2021 3,382 — 412 —
2020 3,620 — 320 —
Associate:
Power Works Limited 2021 1,380 — 865 —
2020 1,458 — 980 —
Joint venture in which the parent is
a venturer:
Showers Limited 2021 — 327 — 75
2020 — 285 — 20
Key management personnel of the Group:
Other directors’ interests 2021 132 270 6 18
2020 — 220 15 7

Good Group (International) Limited 46

Notes to the interim condensed consolidated financial statements

17. Related party disclosures continued

For loans to directors, see Note 12. The following table provides the interest received during the six months
ended 30 June 2021 and 2020, as well as the loans outstanding from related parties as at 30 June 2021
and 31 December 2020:
Interest Amounts owed by
Loans to related parties received related parties
Associate: €000 €000
Power Works Limited 2021 27 431
2020 10 200

Key management personnel of the Group

Directors’ loans 2021 1 6
2020 1 13

IAS 34.16A(h)
18. Distributions made and proposed
IAS 34.16A(f)

For the six months

ended 30 June
Cash dividends to the equity holders of the parent: 2021 2020
€000 €000
Dividends on ordinary shares declared and paid:
Final dividend for 2020: 5.01 cents per share (2019: 5.66 cents per share) 1,087 1,082
Proposed dividends on ordinary shares:
First dividend for 2021: 4.60 cents per share (2020: 4.10 cents per share) 1,004 890

The proposed dividends on ordinary shares are subject to approval at the annual general meeting and are not
recognised as a liability as at 30 June 2021. The 2021 proposed dividend was approved on 1 August 2021.

One of the Group’s subsidiaries, Extinguishers Limited, issued cash dividends during the six months ended
30 June 2021 and 2020. The amount paid/received within the Group was eliminated on consolidation and
the amounts paid to non-controlling interests were €12,000 and €20,000, respectively.

47 Good Group (International) Limited

Notes to the interim condensed consolidated financial statements

19. Events after the reporting period IAS 34.16A(h)

On 15 July 2021, a customer commenced an action against the Group in respect of inventory that it claims
to be defective. Should the action against the Group be successful, the estimated loss is €550,000. However,
a trial date has not yet been set. The Group has been advised by its legal counsel that, at the date of
authorisation of these interim financial statements, it is not practicable to determine the likelihood of
the outcome of the action or state the timing of the payment, if any.
Covid-19 commentary
As the Covid-19 pandemic evolves, governments are implementing additional measures to address the resulting public
health issues and the economic impact. Entities need to assess if they are affected, or expect to be impacted, by
developments and measures taken after the end of their reporting period. A critical judgement and evaluation
management needs to make is whether and, if so, what these events provide of evidence of conditions that existed at the
end of the reporting period for the entity’s activities or their assets and liabilities.
If management concludes an event is a non-adjusting event, but the impact of it is material, the entity is required by
IAS 34.16A(h) to disclose the nature of the event and an estimate of its financial effect unless it is impractical to do so.
Areas that an entity should consider disclosing in its subsequent events note may include:
• The measures taken to mitigate the impact of the Covid-19 pandemic and to continue operations
• That the entity continues to monitor the Covid-19 pandemic situation and will take further action as necessary in
response to the economic disruption
• Any issuance of debt or equity or refinancing undertaken after reporting. Entities should disclose any amendments or
waivers of covenants agreed by lenders to accommodate Covid-19 related concerns
• Reorganisations to reduce the impact of the Covid-19 pandemic and whether any disposals of business units have
been decided
• The impact of the subsequent restrictions imposed by governments that caused disruption to businesses and
economic activity and the expected effects on revenue and operations
• Any decisions made to suspend or alter dividends made after considering the inherent uncertainty surrounding the
financial impact of the Covid-19 pandemic
• Whether the Covid-19 outbreak may continue to cause disruption to economic activity and whether there could be
further adverse impacts on revenue and other aspects of the business.

Good Group (International) Limited 48

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