| Amendment to IAS 16 – Property, plant and equipment: revenue obtained before putting into use |
2021/1080 |
The amendment forbids any deduction from the initial value of property, plant and equipment of amounts obtained from the sale of products produced in the course of bringing an asset to a condition where it is fit for use as intended (from test production). Such proceeds from sales and related costs will be recognized in the profit or loss.
The change did not have any significant effect on the PZU Group’s consolidated financial statements.
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| Amendment to IAS 37 – Onerous contracts – costs of fulfillment of contractual obligations |
2021/1080 |
The amendments define what costs should be taken into account when deciding whether or not the contract in question is an onerous contract. The amendments specify that „contract performance costs” are costs directly related to the contract which include:
- incremental contract performance costs, such as direct costs of material, direct labor, and
- allocation of other costs that are directly related to the performance of the contract, e.g. allocation of the depreciation charge on the items of property, plant and equipment taken advantage of to perform the contract.
The change did not have any significant effect on the PZU Group’s consolidated financial statements.
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| Amendments to IFRS 3 |
2021/1080 |
The amendments include:
- updated references to the framework (from 2018 instead of 1989);
- added requirement to apply IAS 37 or IFRIC 21 instead of the framework – for transactions and events falling in the scope of this standard and interpretations for the purpose of identifying liabilities taken over in a business combination;
- unambiguous prohibition of the recognition of contingent assets acquired in a business combination.
The change did not affect the PZU Group’s consolidated financial statements.
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| Amendments to IFRS 2018-2020 |
2021/1080 |
The amendments pertain to:
- IFRS 1 – the amendment permits a subsidiary that adopts IFRS for application later than its parent and applies paragraph D16(a) of IFRS 1 to measure cumulative foreign exchange differences using the amounts reported in the parent’s consolidated financial statements based on the date of the parent’s transition to IFRS;
- IFRS 9 – the amendment clarifies that for the purposes of the „10 percent” test, only fees paid or received between the borrower and the lender, including fees paid or received by the borrower or lender on behalf of the other party, should be considered in making a decision on the possible derecognition of a financial liability;
- IFRS 16 – the amendment has removed the example concerning the reimbursement of lease improvements by the lessor (due to related uncertainties);
- IAS 41 – to ensure consistency with IFRS 13, the amendment has removed the requirement from paragraph 22 of IAS 41 according to which reporting entities should exclude cash flows from taxation when measuring the fair value of a biological asset using the present value method.
The amendments did not exert a material influence on the PZU Group’s consolidated financial statements.
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