17. Other operating income and expenses
Accounting policies
Other operating income and expenses comprise income and costs not directly related to banking activities. Other operating income mainly includes gains on sale of housing investments, sale or liquidation of non-current assets, intangible assets and foreclosed collateral, sale of shares in a subsidiary, legal damages, fines and penalties, income from lease/rental of properties. Other operating expenses mainly include losses on sale or liquidation of non-current assets, intangible assets and foreclosed collateral, and donations made.
2018
Other operating income and expenses of the Group entities also include income from sale of finished goods, goods for resale and materials, and the corresponding costs of their production.
Income from construction services (real estate development activities) is recognized on a completed contract basis, which involves recognition of all costs related to the housing investments that are incurred during the period of construction as work-in-progress, and payments received on account of purchase of apartments – as deferred income.
Financial information
| Other operating income | 2018 | 2017 |
|---|---|---|
| Net sales of finished goods and services | 392 | 472 |
| Gains associated with loss of control over a subsidiary | 25 | – |
| Gains on sale or scrapping of property, plant and equipment, intangible assets and assets held for sale |
57 | 95 |
| Damages, compensation and penalties received | 19 | 22 |
| Ancillary income | 19 | 27 |
| Recovery of receivables expired, forgiven or written off | 7 | 3 |
| Income from BGF in respect of guarantees | 8 | – |
| Release of provision for future payments | 16 | 2 |
| Release of provision for legal claims | 4 | 21 |
| Other1 | 83 | 91 |
| Total | 630 | 733 |
1 The amount relating to the refund of the penalty imposed by UKOiK of PLN 21 million is shown in the item “Other” in 2018.
| Other operating expense | 2018 | 2017 |
|---|---|---|
| Costs of products and services sold | (32) | (118) |
| Losses on sale or scrapping of property, plant and equipment, intangible assets and assets held for sale | (25) | (21) |
| Donations made | (53) | (23) |
| Sundry expenses | (17) | (17) |
| Provision for a potential return of fees and commissions to customers1 | (62) | – |
| Provision for future payments | (6) | (4) |
| Provision for legal claims2 | (43) | (22) |
| Other | (75) | (61) |
| Total | (313) | (266) |
1 A detailed description of the provision set up was provided in Note 48 “Legal claims.
2 The amount relating to the refund of the penalty imposed by UKOiK of PLN 21 million is shown in the item “Provisions for legal claims” in 2018.