Strategic Report Strategic Report Strategic Report Financial Additional Overview Strategy Performance Governance Statements Information 3. Summary of Significant Accounting Policies continued Adoption of new or revised standards and interpretations continued The impact of transition to IFRS 9 on reserves and retained earnings is, as follows: Other reserves and retained earnings Other reserves Closing balance under IAS 39 (31 December 2017) 122,082 Recognition of expected credit losses under IFRS 9 for debt financial assets at FVOCI 3,350 Income tax in relation to the above (83) Opening balance under IFRS 9 (1 January 2018) 125,349 Retained earnings Closing balance under IAS 39 (31 December 2017) 2,180,415 Recognition of IFRS 9 ECLs including those measured at FVOCI (see below) (54,031) Reinstatement of loans to customers previously written off* 33,582 Income tax in relation to the above 2,212 Opening balance under IFRS 9 (1 January 2018) 2,162,178 Non-controlling interests Closing balance under IAS 39 (31 December 2017) 311,768 Recognition of IFRS 9 ECLs including those measured at FVOCI (see below) (2,724) Opening balance under IFRS 9 (1 January 2018) 309,044 Total change in equity due to adopting IFRS 9 (17,694) * As at transition date, the change in write-off policy as a result of IFRS 9application resulted in the reinstatement of loans to customers previously written off. Annual Report 2018Bank of Georgia Group PLC 203