5. Key accounting policies, key estimates and judgments

Annual Report 2017 > Results 2017 > Supplementary information and notes > 5. Key accounting policies, key estimates and judgments
Reference Areas:
Best Pratices in PZU

The consolidated financial statements have been prepared on the historical cost basis, except from remeasurements of investment property and some financial instruments, which are measured at fair value.

The preparation of consolidated financial statements in compliance with IFRS requires the PZU Management Board to make professional judgments, estimates and assumptions that affect the adopted accounting policies and the presented values of assets, liabilities, revenues and costs.

Such estimates and associated assumptions are based on historical experience and other factors which are considered reasonable in existing circumstances and their results provide grounds for making a professional judgment regarding the carrying amount of assets and liabilities that does not result directly from other sources.

In making judgments, estimates or assumptions, the PZU Management Board may, in significant matters, rely on the opinions of independent experts.

The actual value may differ from the estimated one. All judgments, estimates and related assumptions are revised on an ongoing basis. Their changes are recognized as described in section 0.

The key accounting policies, estimates and judgments used for the preparation of the consolidated financial statements are described below and in the individual notes as specified in the table below.

Item of the profit and loss accountNote No.Item of the statement of financial positionNote No.
Gross written premiums10Goodwill26
Revenue from commissions and fees11Intangible assets27
Net investment income12Deferred acquisition costs28
Net result on realization and impairment losses on investments13 33.7Property, plant and equipment30
Claims paid and movement in technical provisions16Investment property31
Interest expense18Entities measured by the equity method32
Acquisition expenses19Financial assets33
Administrative expenses20Cash35
Income tax23Assets held for sale36
Equity attributable to equity holders of the Parent37
Non-controlling interest2.3
Technical provisions38
Provisions for employee benefits39
Other provisions40
Deferred tax41
Financial liabilities42

Section includes:


Facebook Twitter Google Plus All