Table 1
Export to Excel| Categories and classes of financial assets | As at 31 December 2020 |
As at 31 December 2019 | ||
|---|---|---|---|---|
| Carrying amount | Fair value |
Carrying amount |
Fair value |
|
| 1 Financial assets measured at amortized cost | 2,662,298 | 2,582,793 | ||
| Receivables from buyers | 2,473,416 | 2,473,416 | 2,290,746 | 2,290,746 |
| Deposits | 53,448 | 53,448 | 50,228 | 50,228 |
| Loans granted | 26,190 | 26,190 | 39,467 | 39,467 |
| Other financial receivables | 109,244 | 109,244 | 202,352 | 202,352 |
| 2 Financial assets measured at fair value through profit or loss (FVTPL) |
1,397,075 | 2,004,034 | ||
| Derivative instruments | 158,846 | 158 846 | 86,067 | 86,067 |
| Shares | 85,454 | 85 454 | 140,508 | 140,508 |
| Shares classified as fixed sasets held for sale | 91,227 | 91 227 | – | – |
| Loans granted | 72,523 | 72 523 | 216,018 | 216,018 |
| Other financial receivables | 67,680 | 67 680 | 296,867 | 296,867 |
| Investment fund units | – | – | 26,622 | 26,622 |
| Cash and cash equivalents | 921,345 | 921 345 | 1,237,952 | 1,237,952 |
| 3 Derivative hedging instruments | – | 19,462 | 19,462 | |
| 4 Financial assets excluded from the scope of IFRS 9 Finanical Instruments |
586,559 | 559,144 | ||
| Investments in joint ventures | 586,559 | 559,144 | ||
| Total financial assets, of which in the statement of financial position: |
4,645,932 | 5,165,433 | ||
| Non-current assets | 890,915 | 1,032,701 | ||
| Investments in joint ventures | 586,559 | 559,144 | ||
| Loans granted to joint ventures | 96,293 | 238,035 | ||
| Other financial assets | 208,063 | 235,522 | ||
| Current assets | 3,755,017 | 4,132,732 | ||
| Receivables from buyers | 2,363,085 | 2,290,746 | ||
| Loans granted to joint ventures | 2,420 | 4,999 | ||
| Other financial assets | 266,431 | 599,035 | ||
| Cash and cash equivalents | 909,453 | 1,237,952 | ||
| Assets classified as held for sale | 213,628 | – | ||
The above note includes financial instruments of the subsidiary TAURON Ciepło Sp. o.o. recognized by the Group as at the balance sheet date as assets classified as held for sale.
Based on the analysis performed, the collaterals transferred whose value as at 31 December 2020 amounted to PLN 67,680 thousand, were classified as other financial receivables at a fair value through profit or loss due to the fact that this classification provides the best reflection of the nature of these financial assets. The remaining other financial receivables are classified as measured at amortised cost.
The Group classifies the loan granted to Elektrociepłownia Stalowa Wola S.A. under an agreement of 28 February 2019 to assets measured at a fair value though profit or loss, as discussed in detail in Note 27 to these consolidated financial statements.
Table 2
Export to Excel| Categories and classes of financial liabilities | As at 31 December 2020 |
As at 31 December 2019 |
||
|---|---|---|---|---|
| Carrying amount | Fair value |
Carrying amount |
Fair value |
|
| 1 Financial liabilities measured at amortized cost | 15,913,883 | 15,428,187 | ||
| Preferential loans and borrowings | 1, 717 | 16 717 | 12,488 | 12,488 |
| Arm’s length loans and borrowings | 5,973,155 | 6 004 972 | 7,014,824 | 7 030,597 |
| Bank overdrafts | 2,261 | 2 261 | 23,339 | 23,339 |
| Bonds issued | 7,522,209 | 7 939 153 | 6,257,022 | 6 537,537 |
| Liabilities to suppliers | 1,021,364 | 1 021 364 | 850,628 | 850,628 |
| Other financial liabilities | 245,623 | 245 623 | 223,920 | 223,920 |
| Capital commitments | 880,373 | 880 373 | 765,357 | 765,357 |
| Salaries and wages | 232,274 | 232 274 | 223,679 | 223,679 |
| Insurance contracts | 19,907 | 19 907 | 56,930 | 56,930 |
| 2 Financial liabilities measured at fair value through profit or loss (FVTPL) |
85,523 | 124,527 | ||
| Derivative instruments | 85,523 | 85 523 | 124,527 | 124,527 |
| 3 Derivative hedging instruments |
90,061 | 90 061 | – | – |
| 4 Financial liabilities excluded from the scope of IFRS 9 Financial Instruments |
1,146,094 | 90 061 | 1,006,603 | |
| Liabilities under leases | 1,146,094 | 1,006,603 | ||
| Total financial liabilities, of which in the statement of financial position: |
17,235,561 | 16,559,317 | ||
| Non-current liabilities | 13,245,304 | 11,909,600 | ||
| Debt | 13,108,449 | 11,830,183 | ||
| Other financial liabilities | 136,855 | 79,417 | ||
| Current liabilities | 3,990,257 | 4,649,717 | ||
| Debt | 1,478,550 | 2,484,093 | ||
| Liabilities to suppliers | 965,106 | 847,226 | ||
| Capital commitments | 838,486 | 757,943 | ||
| Other financial liabilities | 549,671 | 560,455 | ||
| Liabilities associated with assets classified as held for sale | 158,444 | – | ||
The above note includes financial instruments of the subsidiary TAURON Ciepło Sp. o.o. recognized by the Group as at the balance sheet date as liabilities related to assets classified as held for sale.
The fair value measurement methodology applied to financial instruments and fair value hierarchy levels assigned to these instruments are presented in the following tables.
Table 3
Export to Excel| Financial asset/liability classes | Fair value measurement level |
Fair value measurement methodology |
|---|---|---|
| Financial assets/liability measured at fair value | ||
| Derivatives, including: | ||
| IRS and CCIRS | 2 | Derivatives have been measured in line with the methodology presented in Note 51.3 hereto. |
| Currency forwards | 2 | |
| Commodity forwards and futures | 1 | |
| Shares | 3 | The Group estimated the fair value of shares held in not listed companies using the adjusted net assets method, considering its share in the net assets and adjusting the value by relevant factors affecting the measurement, such as the non-controlling interest discount and the discount for the limited liquidity of the above instruments or using a mixed approach. As the key factors affecting the value of the assumed shares had not changed at a given end of the reporting period compared to the initial recognition, in the case of other instruments the Group assumes that the historical cost is an acceptable approximation of the fair value. |
| Loans granted | 3 | Fair value measurement of the loan had the form of the current value of future cash flows, including borrower’s credit risk. |
| Financial liabilities whose fair value is disclosed | ||
| Loans, borrowings and bonds issued | 2 | Liabilities arising from fixed interest debt are measured at fair value. The fair value measurement was carried out based on the present value of future cash flows discounted using an interest rate applicable to given bonds or borrowings, i.e. applying market interest rates. |
The fair value of other financial instruments as at 31 December 2020 and 31 December 2019 (except from those excluded from the scope of IFRS 9 Financial Instruments) did not differ considerably from the amounts presented in the financial statements for the individual periods for the following reasons:
- the potential discounting effect relating to short-term instruments is not material;
- these instruments are related to arm’s length transactions.
Shares in jointly controlled entities excluded from the scope of IFRS 9 Financial Instruments are measured using the equity method.
Change in the balance of financial assets whose measurement is classified at the 3rd level of the fair value hierarchy
Export to Excel| Year ended 31 December 2020 |
Year ended 31 December 2019 |
|||
|---|---|---|---|---|
| Not quoted shares | Loans granted | Not quoted shares | Loans granted | |
| Opening balance | 140,508 | 216,018 | 138,492 | 199,256 |
| Gains/(losses) for the period recognized in financial revenue/expenses | (1,376) | (143,495) | (10,044) | 16,762 |
| Purchased | 47,049 | – | 12,072 | – |
| Sold (liquidation)/repaid | – | – | (12) | – |
| Other changes | (9,500) | – | – | – |
| Closing balance | 176,681 | 72,523 | 140,508 | 216,018 |
Neither in the year ended 31 December 2020 nor in the year ended 31 December 2019, reclassification occurred between level 1 and 2 of the fair value hierarchy; nor did such reclassification occur from or to level 3 of that hierarchy.