Tauron – 35. Cash and equivalents

SELECTED ACCOUNTING PRINCIPLES Cash and cash equivalents comprise, in particular, cash in hand and at bank and short-term deposits with the original maturity period of up to three months. Cash is recognised at a face value. In case of funds deposited in bank accounts, the face value as at the balance sheet date comprises interest calculated by the bank or accrued by the entity on its own. Unpaid overdraft facilities that constitute an integral part of cash management are classified as “Cash and cash equivalents” for the purposes of statement of cash flows. In the statement of financial position, such facilities are presented, respectively, in debt liabilities.

SELECTED ACCOUNTING PRINCIPLES

Cash and cash equivalents comprise, in particular, cash in hand and at bank and short-term deposits with the original maturity period of up to three months.

Cash is recognised at a face value. In case of funds deposited in bank accounts, the face value as at the balance sheet date comprises interest calculated by the bank or accrued by the entity on its own.

Unpaid overdraft facilities that constitute an integral part of cash management are classified as “Cash and cash equivalents” for the purposes of statement of cash flows. In the statement of financial position, such facilities are presented, respectively, in debt liabilities.

Table 1

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	As at 31 December 2020	As at 31 December 2019
Cash at bank and in hand	658,881	1,231,112
Short-term deposits (up to 3 months)	250,006	4,898
Other	566	1,942
Total cash and cash equivalents presented in the statement of financial position, of which :	909,453	1,237,952
restricted cash, including:	210,661	729,450
collateral of settlements with Izba Rozliczeniowa Giełd Towarowych S.A.	120,981	599,059
bank accounts related to subsidies received	31,899	71,606
cash on VAT bank accounts (split payment)	49,111	58,428
Bank overdraft	(2,261)	(23,339)
Cash pool	(20,864)	(10,973)
Cash reclassifed to assets held for sale	11,892	–
Foreign exchange	(2,843)	(39)
Total cash and cash equivalents presented in the statement of cash flows	895,377	1,203,601

The decrease in the balance of restricted cash compared to the comparable period in the total amount of PLN 518,789 thousand relates mainly to settlements with Izba Rozliczeniowa Giełd Towarowych S.A. (a decrease in the cash balance on this account by PLN 478,078 thousand) and results from the decline in the value of required margins.

The difference between the balance of cash presented in the statement of financial position and in the statement of cash flows results from overdrafts, cash pool loans granted by entities not subject to consolidation due to the overall immateriality and exchange gains and losses on measurement of cash on accounts in foreign currency.