The consolidated financial statements have been prepared in accordance with the historical cost concept, except for the update of the valuation of investment properties and certain financial instruments which are carried at fair value.
Preparation of the consolidated financial statements in accordance with IFRS requires that the PZU Management Board make professional judgment and estimates and assumptions, which impact the adopted accounting policies and the presented values of assets and 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.
Making the judgments, estimates or assumptions the PZU Management Board may, in material issues, rely on the opinions of independent experts.
The actual value may differ from the estimate value. The judgments, estimates and related assumptions are subject to ongoing verification. Their changes are recognized in the manner described in section 5.1.
The key accounting policies and estimates and assessments used in preparation of the consolidated financial statements are described below and in individual notes, according to the table below.
|Profit and loss account item||Note number||Statement of financial position item||Note number|
|Gross written premiums||10||Goodwill||26|
|Revenue from commissions and fees||11||Intangible assets||27|
|Net investment income||12||Deferred acquisition expenses||29|
|Net result on realization of financial instruments and investments||13||Property, plant and equipment||30|
|Movement in allowances for expected credit losses and impairment losses on financial instruments||36||Investment property||31|
|Claims, benefits and movement in technical provisions||17||Entities measured by the equity method||32|
|Interest expenses||19||Loan receivables from clients||33|
|Acquisition expenses||20||Financial derivatives||34|
|Administrative expenses||21||Investment financial assets||35|
|Assets held for sale||39|
|Equity attributable to equity holders of the parent||40|
|Provisions for employee benefits||42|