2022 Annual Report

45. Other assets

2022 Annual Report

Accounting policies:

Valuation and classification of other financial assets into categories is carried out in accordance with the principles for determining the business model and assessing the characteristics of contractual cash flows referred to in note “General accounting policies for financial instruments”.

Other financial assets recognized in this item are stated at amounts due, comprising also potential interest on such assets, taking into consideration provisions for expected credit losses.

Other non-financial assets are measured in accordance with the valuation principles applicable to specific categories of assets recognized in this item.

Inventories are measured at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The value of inventories disbursement is determined by specific identification of individual purchase prices or production costs of components, which relate to realisation of specific projects.

Financial information

For more information on credit risk exposures, see note “Credit risk – financial information”.

OTHER ASSETS 31.12.2022 31.12.2021
Other financial assets 1 867 1 895
Settlements in respect of card transactions 620 1 252
Settlement of financial instruments 134 109
Receivables in respect of cash settlements 340 233
Receivables and settlements in respect of trading in securities 24 14
Sale of foreign currencies 118 4
Trade receivables 229 215
Other 402 68
Other non-financial assets 937 710
Inventories 287 191
Assets for sale 126 89
Prepayments and deferred costs 131 99
VAT receivable 45 195
Receivables from the State Budget in respect of flat-rate income tax 12
Receivables from settlements with the National Clearing House 1
Other1 335 136
Total 2 804 2 605
1 under “Other” as at 31 December 2022 includes an amount of PLN 186 million (PLN 281 million of gross receivables and PLN (95) million of gross adjustments to other assets) due to the recognition of receivables for capital paid out to customers and an amount of PLN 40 million due to claims by the Group for reimbursement of costs for non-contractual use of capital (see note “Cost of legal risk of mortgage loans in convertible currencies”).

Other non-financial assets

OTHER NON-FINANCIAL ASSETS 31.12.2022 31.12.2021
Gross amount 1 274 1 040
Impairment losses (337) (330)
Net carrying amount 937 710

Other non-financial assets – CHANGES IN IMPAIRMENT LOSSES 2022 2021
As at the beginning of the period (330) (268)
Recognized during the period (66) (84)
Derecognition of assets and settlements 36 30
Reversed during the period 27 41
Other (4) (49)
As at the end of the period (337) (330)

Management of foreclosed collateral – item “assets for sale”

Foreclosed collaterals as a result of restructuring or debt collection activities are either designated for sale or used by the Group for internal purposes. Details of the foreclosed assets are analysed in order to determine whether they can be used by the Group for internal purposes. All of the assets foreclosed as a result of restructuring and debt collection activities in the years ended 31 December 2022 and 31 December 2021, respectively, were designated as held for sale. Activities undertaken by the Group are aimed at selling assets as soon as possible. The primary procedure for the sale of assets is an open tender. In justified cases, the sale follows a different procedure depending on the specifics of the sold property.

Other non-financial assets – inventories

OTHER ASSETS – INVENTORIES 31.12.2022 31.12.2021
Goods 264 185
Materials 22 16
Inventory write-downs 1 (10)
Total 287 191

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