The preparation of consolidated financial statements in compliance with IFRS requires the PZU Management Board to make professional judgments, estimates and assumptions that affect the adopted accounting policies and the presented values of assets, liabilities, revenues and costs.

The estimates and the related assumptions are based on historical experience and other factors which are deemed reasonable in the given circumstances, and their results provide the basis for professional judgment regarding the carrying amount of the assets and liabilities which does not follow directly from other sources.

In making judgments, estimates or assumptions, the PZU Management Board may, in significant matters, rely on the opinions of independent experts.

The actual value may differ from the estimated one. All judgments, estimates and related assumptions are revised on an ongoing basis. Their changes are recognized as described in section 6.1.

The key accounting policies, estimates and judgments used for the preparation of the consolidated financial statements are described below and in the individual notes as specified in the table below.

XLS

Item of the profit and loss account Note Item of the statement of financial position Note
Gross written premiums 11 Goodwill 28
Revenue from commissions and fees 12 Intangible assets 29
Interest income calculated using the effective interest rate 13 Deferred acquisition costs 31
Result on derecognition of financial instruments and investments 15 Property, plant and equipment 32
Movement in allowances for expected credit losses and impairment losses on financial instruments 39 Investment property 33
Claims, benefits and movement in technical provisions 19 Assets securing liabilities 37
Interest expenses 21 Entities measured by the equity method 34
Acquisition expenses 22 Loan receivables from clients 35
Administrative expenses 23 Financial derivatives 36
Income tax 26 Investment financial assets 37
Cash and cash equivalents 40
Assets and liabilities held for sale 50
Equity attributable to equity holders of the Parent 41
Non-controlling interest 2.4
Technical provisions 42
Subordinated liabilities 43
Liabilities on the issue of own debt securities 44
Liabilities to banks 45
Liabilities to clients under deposits 46
Other liabilities 47
Provisions 48
Deferred tax 49
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5. Parent Company’s Supervisory Board
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6.1 Changes in accounting policies and estimates, errors from previous years