37.2 Other capital

Reference Areas:
Best Pratices in PZU

37.2.1 Accounting policy

Treasury shares purchased and retained by consolidated PZU Group entities are shown at purchase price. The “Supplementary capital” item includes:

  • the effect of distribution of profit, in accordance with the legal regulations in effect in the country of the company's domicile (in Poland under the Commercial Company Code) and the articles of association of PZU Group companies;
  • the capital created upon the sale of investment property previously transferred from own property, according to the rules described in section 31;
  • the difference between the change in value of non-controlling interest and fair value of payment in transactions with non-controlling interests.

Results of the following are posted in the “Revaluation reserve” item:

  • revaluation of financial assets classified as assets available for sale;
  • revaluation of property to its fair value on the date when it is classified from own property to investment property;
  • measurement of hedging instruments, in respect to the part constituting effective hedge; after taking into account the corresponding change in deferred tax assets or liabilities;

The item “Actuarial gains and losses related to provisions for employee benefits” includes amounts resulting from increases or decreases in the present value of the defined benefit obligation because of changes in actuarial assumptions and experience adjustments – demographic (e.g. mortality, employee turnover) and financial (e.g. discount rate or projected salary growth rate).

“Foreign exchange translation differences” include differences resulting from translation of financial data of foreign entities using exchange rates, in accordance with the rules described in section 5.5.

37.2.2 Quantitative data


Other capital31 December 201731 December 2016
Treasury stock-(1)
Supplementary capital11,82410,758
Share premium account538538
Distribution of results of PZU Group companies11,23110,106
Revaluation reserve157106
Measurement of financial instruments available for sale7825
Reclassification of real property from property, plant and equipment to investment property8589
Entities measured by the equity method11
Cash flow hedging(7)(9)
Other reserve capital55
Actuarial gains and losses related to provisions for employee benefits43
Foreign exchange translation differences(73)(2)
Lietuvos Draudimas AB(13)40
AAS Balta-12
PZU Ukraine(51)(49)
PZU Ukraine Life(10)(8)
Total other capital11,91710,869
Change in the revaluation reserve resulting from remeasurement of financial instruments available for sale1 January – 31 December 20171 January – 31 December 2016
Beginning of the period25129
- change in fair value132(130)
- sale(79)26
End of the period7825

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