14.1. Implementation schedule

Starting in 2020, the Group’s insurance companies are implementing the IFRS 17 implementation project, with support from the External Advisor from 2021. The scope of the project primarily includes the development of a methodology and the implementation of a dedicated tool to perform actuarial calculations in line with the requirements of IFRS 17.

In the second quarter of 2022, a project coordinated by the Bank and supported by the External Advisor commenced, where the scope of work related to the implementation of IFRS 17 was extended to the Group, including the Bank and the Group’s leasing companies. The project coordinated by the Accounting and Reporting Department also involves employees of the Tax Department, Planning Department and Control Department, Credit Risk Management Department, as well as employees from business, settlement and IT. In addition, representatives of subsidiaries are involved in the project: PKO Leasing S.A., PKO Życie Towarzystwo Ubezpieczeń S.A and PKO Towarzystwo Ubezpieczeń S.A.

As part of the work carried out as part of the projects:

• a gap analysis of existing legislation (IFRS 15, IFRS 9, IFRS 4, Recommendation U) versus the requirements of IFRS 17 was prepared;
• a concept was developed on how to implement IFRS 17 and its impact on the method of consolidation, the structure of the balance sheet and the income statement, taking into account tax and capital adequacy issues;
• a detailed valuation methodology has been developed for each type of contract;
• adjustments were calculated for the opening balance sheet as at 1 January 2022 and for the comparable periods of 2022, resulting from the implementation of IFRS 17;
• Group accounting policies regarding IFRS 17 have been developed;
• templates for disclosures in the financial statements from 1 January 2023 onwards have been prepared;
• the concept of IT solutions was developed (identification of data sources, construction of input and output data repositories to facilitate the automation of recalculations, construction of an actuarial recalculation tool, operationalization of their generation);