In line with IFRS 17:C3, the PZU Group has applied the full retrospective approach unless it was impracticable. The PZU Group has determined that the application of the standard is impracticable within the meaning of paragraph 5 of International Accounting Standard 8, i.e., the application of the standard is impracticable in practice when an entity cannot apply it, despite all reasonable efforts and actions to do so. For a specific past period, an entity is not able to make changes in accounting policies or make retrospective restatements of data if:
- the effect of the retrospective approach is impossible to determine;
- retrospective application of a policy or retrospective restatement of data requires making assumptions about management’s intentions during the period indicated; or
- retrospective application of rules or retrospective restatement of data requires making significant estimates, and it is impossible to objectively extract from the information in possession such information on estimates that:
- confirm the conditions as of the date on which the values are to be recognized, valued or disclosed;
- could be available when the financial statements for that period were approved for publication.
For those parts of the business for which it was not feasible to apply the full retrospective approach (e.g., data were not collected at the required resolution, there were changes in IT systems that made it impossible to prepare the relevant data, and there were profound changes in actuarial models that were in practice impossible to implement retrospectively), the PZU Group applied the simplifications allowed by the standard.