SELECTED ACCOUNTING PRINCIPLESFinancial revenues and costs comprise, in particular, revenues and costs related to:
Transactions expressed in foreign currencies are converted upon the initial recognition into functional currency applying the average exchange rate established for a given currency by the National Bank of Poland on the day preceding that day. As at the balance sheet date, monetary items are converted applying the closing exchange rate (for entities whose functional currency is Polish zloty, the closing rate is the average exchange rate determined for a given currency by the National Bank of Poland on that day). |
For the purpose of balance sheet valuation, the following exchange rates were applied:
Export to Excel| Currency | 31 December 2020 | 31 December 2019 |
|---|---|---|
| USD | 3.7584 | 3.7977 |
| EUR | 4.6148 | 4.2585 |
| CZK | 0.1753 | 0.1676 |
| Exchange differences arising on settlement and translation as at the balance sheet date are recognised, respectively, in the income statement under financial revenues (costs), except when capitalised in the value of assets. |
TAURON Polska Energia S.A. Capital Group Consolidated financial statements for the year ended December 31, 2020 in accordance with IFRS approved by the EU (in PLN thousand)
Export to Excel| Year ended 31 December 2020 |
Year ended 31 December 2019 (restated figures) |
|
|---|---|---|
| Income and costs from financial instruments | (631,195) | (255,413) |
| Interest costs | (283,456) | (248,781) |
| Exchange differences | (246,352) | 30,079 |
| Remeasurement of loans granted | (221,382) | 15,936 |
| Gain/loss on derivative instruments | 125,514 | (53,233) |
| Interest income | 25,946 | 30,265 |
| Commission relating to borrowings and debt securities | (18,162) | (20,338) |
| Dividend income | 6,176 | 4,254 |
| Other | (19,479) | (13,595) |
| Other finance income and costs | (9,838) | (56,379) |
| Interest on employee benefits | (21,150) | (31,981) |
| Interest on discount of other provisions | (10,289) | (12,154) |
| Other finance income | 32,941 | 12,871 |
| Other finance costs | (11,340) | (25,115) |
| Total, including recognized in the statement of comprehensive income: | (641,033) | (311,792) |
| Interest expense on debt | (283,456) | (248,781) |
| Finance income and other finance costs | (357,577) | (63,011) |
In the year ended 31 December 2020 compared to the comparative period, the main changes in the financial revenues and costs referred to:
- excess of exchange rate losses over gains in the amount of PLN 246 352 thousand (in the comparable period, the excess of exchange rate gains over losses in the amount of PLN 30,079 thousand). The exchange differences mainly relate to exchange differences related to the Company liabilities on account of debt in EUR;
- revaluation of loans granted to the joint venture, Elektrociepłownia Stalowa Wola S.A., resulting mainly from credit risk analyses of the loans granted as at the balance sheet date, which reduced their carrying amount in the total amount of PLN 235,714 thousand (discussed in more detail in Note 27 to these consolidated financial statements);
- recognising a positive result on derivatives due to the measurement and realisation of derivatives, mainly currency forwards and CCIRS;
- the increase in other financial revenues is mainly related to the recognition by the Company of revenues from the reversal of the provision for audit proceedings in the part relating to interest in the amount of PLN 24,497 thousand, as further described in Note 43.3 to these consolidated financial statements.