Treasury shares purchased and retained by consolidated PZU Group entities are shown at purchase price. The “Supplementary capital” item includes:

  •  the effect of distribution of profit, in accordance with the legal regulations in effect in the country of the company’s domicile (in Poland under the Commercial Company Code) and the articles of association of PZU Group companies;
  •  the capital created upon the sale of investment property previously transferred from own property, according to the rules described in section 33;
  • the difference between the change in value of non-controlling interest and fair value of payment in transactions with noncontrolling interests.

Results of the following are posted in the “Revaluation reserve” item:

  • revaluation of financial assets classified as assets measured at fair value through other comprehensive income;
  •  revaluation of property to its fair value on the date when it is classified from own property to investment property;
  • measurement of hedging instruments, in respect to the part constituting effective cash flow hedge; after taking into account the corresponding change in deferred tax assets or liabilities.

The item “Actuarial gains and losses related to provisions for employee benefits” includes amounts resulting from increases or decreases in the present value of the defined benefit obligation because of changes in actuarial assumptions and experience adjustments – demographic (e.g. mortality, employee turnover) and financial (e.g. discount rate or projected salary growth rate).

“Foreign exchange translation differences” include differences resulting from translation of financial data of foreign entities using exchange rates, in accordance with the rules described in section 6.6.