7. Explanation of the differences between previously published financial statements and these financial statements
Apart from the changes resulting from the implementation of IFRS 9 in the PKO Bank Polski SA Group’s consolidated financial statements for the year ended 31 December 2018, to better reflect the changes the Group made the following changes to the presentation.
Annual report
2018
2018
| Consolidated income statement | period from 01.01.2017 to 31.12.2017 before restatement |
Separate presentation of net credit losses and impairment of non-financial assets | Reclassification of provisions for legal claims and other provisions | period from 01.01.2017 to 31.12.2017 restated |
| Net impairment allowances and write-downs | (1 620) | 1 617 | 3 | – |
| Net credit losses | – | (1 545) | – | (1 545) |
| Impairment of non-financial assets | – | (72) | – | (72) |
| Other operating income | 710 | – | 23 | 733 |
| Other operating expenses | (240) | – | (26) | (266) |
| Total | (1 150) | – | – | (1 150) |
| Consolidated statement of cash flows | period from 01.01.2017 to 31.12.2017 before restatement |
separate presentation of the change in hedging derivatives and other derivatives | reclassification to change in “other assets” | separate presentation of the change in “non-current assets held for sale” | reclassification to „accumulated allowances for credit losses and impairment allowances” | separate presentation of ” accumulated allowances on non-financial assets and other provisions” | separate presentation of the change in “amounts due to the Central Bank” | reclassification to “change in other liabilities” | separate presentation of “liabilities in respect of insurance activities” | reclassification of liabilities in respect of insurance activities to “change in amounts due to customers” | separate presentation of the “change in subordinated liabilities” | reclassification to “change in securities” | reclassification of interest accrued, discount, premium on debt securities to the “change in securities” | period from 01.01.2017 to 31.12.2017 restated |
| Cash flows from operating activities | ||||||||||||||
| change in derivative financial instruments | (1 155) | 1 155 | – | – | – | – | – | – | – | – | – | – | – | – |
| change in hedging derivative instruments | – | (1 436) | – | – | – | – | – | – | – | – | – | – | – | (1 436) |
| change in other derivative financial instruments | – | 281 | – | – | – | – | – | – | – | – | – | – | – | 281 |
| change in financial instruments designated at fair value through profit or loss upon initial recognition and financial assets held for trading | 5 675 | – | – | – | – | – | – | – | – | – | – | (5 675) | – | – |
| change in securities | – | – | – | – | – | – | – | – | – | – | – | 5 675 | (325) | 5 350 |
| change in other assets, inventories and non-current assets held for sale | 45 | (45) | – | – | – | – | – | – | – | – | – | – | – | |
| change in non-current assets held for sale | – | – | – | (143) | – | – | – | – | – | – | – | – | (143) | |
| change in other assets | – | – | 45 | 143 | – | – | – | – | – | – | – | – | 188 | |
| change in provisions and impairment allowances | (172) | – | – | – | 172 | – | – | – | – | – | – | – | – | – |
| change in accumulated allowances for credit losses and impairment allowances | – | – | – | – | (172) | (14) | – | – | – | – | – | – | – | (186) |
| change in accumulated allowances on non-financial assets and other provisions | – | – | – | – | – | 84 | – | – | – | – | – | – | – | 84 |
| change in amounts due to the Central Bank | – | – | – | – | – | – | 2 | – | – | – | – | – | – | 2 |
| change in amounts due to banks | (1 202) | – | – | – | – | – | (2) | – | – | – | – | – | – | (1 204) |
| change in amounts due to customers | 15 337 | – | – | – | – | – | – | – | – | (284) | – | – | – | 15 053 |
| change in liabilities in respect of insurance activities | – | – | – | – | – | – | – | – | 339 | – | – | – | – | 339 |
| change in subordinated liabilities | – | – | – | – | – | – | – | – | – | – | 17 | – | – | 17 |
| change in other liabilities and liabilities in respect of insurance activities | 1 124 | – | – | – | – | – | – | (1 124) | – | – | – | – | – | – |
| change in other liabilities | – | – | – | – | – | – | – | 1 124 | (339) | 284 | – | – | – | 1 069 |
| Other adjustments | (179) | – | – | – | – | (70) | – | – | – | (17) | – | 325 | 59 | |
| Total | 19 473 | – | – | – | – | – | – | – | – | – | – | – | – | 19 473 |
| 31.12.2017 before restatement |
reclassification of inventories to “Other assets” |
31.12.2017 restated |
|
| Inventories | 186 | (186) | – |
| Other assets | 2 925 | 186 | 3 111 |
| Total assets | 296 912 | – | 296 912 |
| Amounts due to customers | 31.12.2017 before restatement | change in the treatment of liabilities arising from insurance products | separate presentation of loans and advances | 31.12.2017 restated |
| Measured at amortized cost: | ||||
| Amounts due to retail customers | 151 161 | – | – | 151 161 |
| Current accounts and overnight deposits | 86 819 | – | – | 86 819 |
| Term deposits | 64 126 | – | – | 64 126 |
| Other liabilities | 216 | – | – | 216 |
| Amounts due to corporate entities | 56 230 | – | (3 563) | 52 667 |
| Current accounts and overnight deposits | 40 070 | – | – | 40 070 |
| Term deposits | 11 613 | – | – | 11 613 |
| Loans and advances received | 3 563 | – | (3 563) | – |
| Amounts due from repurchase agreements | 48 | – | – | 48 |
| Other liabilities | 936 | – | – | 936 |
| Amounts due to public entities | 11 409 | – | – | 11 409 |
| Current accounts and overnight deposits | 9 555 | – | – | 9 555 |
| Term deposits | 1 820 | – | – | 1 820 |
| Other liabilities | 34 | – | – | 34 |
| Loans and advances received | – | – | 3 563 | 3 563 |
| Liabilities in respect of insurance products | – | 2 117 | – | 2 117 |
| Total | 218 800 | 2 117 | – | 220 917 |
| Liabilities in respect of insurance activities | 31.12.2017 before restatement | change in treatment of liabilities arising from insurance products | 31.12.2017 restated |
| Technical reserves | 882 | – | 882 |
| Liabilities in respect of insurer’s investment contracts | 2 117 | (2 117) | – |
| Total | 2 999 | (2 117) | 882 |
| Provisions | 31.12.2017 before restatement | separation of provisions for pensions and restructuring from other provisions | 31.12.2017 restated |
| Provisions for legal claims and tax proceedings | 21 | – | 21 |
| Provisions for pension and other liabilities in respect of defined post-retirement benefits | 46 | 15 | 61 |
| Restructuring provision | – | 21 | 21 |
| Provisions for financial liabilities and guarantees granted | 86 | – | 86 |
| Other provisions, including for disputes with employees | 62 | (36) | 26 |
| Total | 215 | – | 215 |