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Communication No. 2 The Minister Of Finance Of 29 March 2012 On The Announcement Of The Resolution Of The Committee Of The Accounting Standards Board On Adoption Of Revised National Accounting Standard No. 4 "impairment Of Assets"

Original Language Title: KOMUNIKAT NR 2 MINISTRA FINANSÓW z dnia 29 marca 2012 r. w sprawie ogłoszenia uchwały Komitetu Standardów Rachunkowości w sprawie przyjęcia znowelizowanego Krajowego Standardu Rachunkowości Nr 4 "Utrata wartości aktywów"

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MESSAGE No 2
MINISTER OF FINANCE

of 29 March 2012

on the announcement of a resolution of the Accounting Standards Committee on the adoption of a revised National Accounting Standard No 4 "Loss of Asset Value"

Resolution No 2/12 of the Accounting Standards Committee of 14 February 2012 is hereby announced. on the adoption of a revised National Accounting Standard No 4, 'Loss of Asset Value', which is an annex to the Communication.

Minister of Finance: wz. M. Orłowska

Annex 1. [ Resolution No. 2/12 of the Accounting Standards Committee of 14 February 2012. on the adoption of a revised National Accounting Standard No 4 "Loss of Asset Value"]

Annex to the Communication No. 2 of the Minister of Finance
of 29 March 2012 (pos. 15)

Resolution No 2/12
Accounting Standards Committee

of 14 February 2012

on the adoption of a revised National Accounting Standard No 4 "Loss of Asset Value"

Based on Paragraph 6 (1) of the 1 in BU Article 2 (1) of the Ordinance of the Minister of Finance of 28 November 2001 on the scope of operation and manner of the organisation of the Accounting Standards Committee (Dz. U. No 140, pos. 1580, with late. (m) the following shall be adopted:

§ 1. 1. The Committee shall adopt the amendment to the National Accounting Standard No 4 "Loss of Asset Value", which is annexed to this Resolution.

2. The standard referred to in paragraph 1, shall enter into force on the day of the announcement in the Official Gazette of the Minister of Finance.

3. The Resolution of the Accounting Standards Committee No. 6/07 of 26 June 2007 is hereby repealed. on the adoption of the National Accounting Standard No 4 'The loss of value of assets'.

§ 2. The resolution shall enter into force on the day of its adoption.

Committee Secretary

The President

Accounting Standards Committee

Aneta Gołdyń

Joanna Dadacz

Annex to Resolution No 2/12 of the Standards Committee
Accounting date of 14 February 2012

NATIONAL ACCOUNTING STANDARD NO 4
'LOSS OF ASSET VALUE'

I. OBJECTIVE AND SCOPE OF THE STANDARD

1.1. The purpose of this National Accounting Standard (hereinafter referred to as the Standard) is to develop the provisions of the Act of 29 September 1994 on accounting (Dz. U. of 2002. Nr 76, pos. 694, with late. zm, hereinafter referred to as the Accounting Act or the Act), specifying the rules for determining and recognising in the accounting books and showing in the financial statements the write-offs of the assets of the entity due to the partial or partial balance sheet the total loss of capacity to bring economic benefits to the entity by those assets.

1.2. An update to the real amount of the carrying amount of the assets classified as assets, as they meet the conditions laid down in Article 4 (1) of the Financial Regulation. 3 para. 1 point 12 of the Accounting Act, serves to ensure a fair view of the performance and economic potential of the entity presented in the accounts and in the financial statements, while also protecting against the loss of losses as assets. Related to updating the need to verify the assets ' ability to bring economic benefits in the future and to strive to maintain the comparability of the solutions used in this respect justifies the use by the individual the proceedings provided for in this Standard.

1.3. The valuation of assets shall be subject to prudence (Art. 7. paragraph 1 point 1 of the Act). The precautionary principle requires updating the value of the assets in which they are recorded in the accounts and the financial statements, to their recoverable value, if it is lower than the value in which the asset is displayed in the accounts at the balance sheet date. This means taking into account the planned reduction of the value of the planned assets in the balance sheet (which serves depreciation and amortisation of certain fixed assets-Article 4 of the Financial Regulation). 32 and Art. 33 (1) 1 of the Act) and unplanned reductions in the usable value or commercial value of assets, both long and short-term (Art. 28 para. 7; art. 34 par. 5; art. 34a par. 5; art. 35 par. 2-3; art. 35a par. 2; Article 35b of the Act). The subject of the Standard is m. in. an explanation of the rules for measuring the loss of value of assets caused by other causes than their depreciation (redemption).

1.4. The valuation of the asset to the balance sheet should be followed by the value at which it was entered in the accounts, which does not exceed the value of the economic benefits that it can obtain through its possession (control over it). However, this rule does not apply to certain asset elements for which the Accounting Act and the Regulation of the Minister of Finance of 12.12.2001. on detailed rules for the recognition, valuation methods, the scope of disclosure and presentation of financial instruments (Dz. U. Nr. 149, pos. 1674 et z 2004 r. Nr 31, pos. 266 and 2005 Nr 256, pos. 2146, hereinafter referred to as the Regulation of 12.12.2001. or the Regulation) provides for their valuation: at the market value, fair value, value determined by the equity method or at the adjusted purchase price (after the amortised cost). Only in respect of such an asset may increase its value resulting from the accounts at the balance sheet date (revaluation) in plus), As is the case in this case, when the value of the asset is determined by the market value, the fair value, the value determined by the equity method, or the adjusted purchase price will be higher than the value resulting from the accounts. Otherwise, it is to establish that the value of the asset of the recoverable amount is lower than its value resulting from the accounts, revaluation is required. in minus, which is tantamount to making a write-off for the loss of value by that asset.

1.5. If, therefore, at the balance sheet date resulting from the accounts, the value of the asset valued is higher than the economic advantage it will bring, as determined in accordance with this Standard, this means that the asset in question has lost its value. -depending on the situation-totally or partially the ability to bring an economic advantage to the entity, which is the consequence of the need to write a write-down on the balance sheet date of its balance sheet.

1.6. The standard-despite the fact that it contains guidance on how to assess the loss of the asset's ability to benefit economic benefits-often refers to the need to apply a professional judgement based on knowledge, knowledge and knowledge things and experience. This obliges the entity to make such arrangements, which, in its opinion, reflect the assessed situation as closely as possible to the actual state.

1.7. Standard represents pricing update write-down procedure both operating assets and investment assets in case of loss of value and applies to all assets of the entity. The way in which it is recommended is presented in such a way as to highlight:

-the need for a comprehensive approach to impairment of assets,

-similarities procedures for determining the write-down of assets in relation to the loss of their assets regardless of whether they are assets related to the operational activities of the entity or are investments,

-the principles deriving from the balance sheet valuation act of assets, reflecting any, both beneficial and unfavourable (due to impairment) for the entity, the effects of current market price movements and changes in the fair value of some long-and short-term assets of the entity,

-the treatment in the accounts of the update write-off which depends on the nature of the assets in question,

-the need to comply with the principle of the individual balance sheet of assets (Art. 7 ust. 3), even if those components do not work out economic benefits on their own, but in the group, together with other assets.

1.8. Bearing in mind:

-art. 28 para. 7 of the Act, according to which the permanent loss of value justifies the making of a write-off of the updating of the value of the asset resulting from the accounts to the net sales price and, in the absence thereof, to a different value fair,

-art. 7 ust. 1 of the Act, according to which the exercise of the principle of prudence in the valuation of assets requires consideration of the reduction in the value of

and at the same time taking into account the fact that:

-many of the assets of a permanent entity will develop a group economic advantage (group) and their sales are not expected to be sold,

-the valuation of the asset in the net sales price and, in the absence thereof, at fair value established by other means, not in any case ensures a fair, ie. the justified function of its function in the unit of presentation of the value of the asset,

it is considered appropriate to detail the issue of the balance sheet valuation in the event of a permanent impairment of the asset value. This allows the value of the asset to be taken into account in addition to the commercial value, as the basis for determining their recoverable value (i.e. recoverable amounts) thanks to the trading or economic use of these assets by the entity. Using the delegation included in the art. 10 para. 3 The Standard Act presents the procedure used in this respect.

1.9. Any determination of the new balance sheet value of the asset, carried out in accordance with the procedure laid down in the Standard for the determination of the write-off of assets caused by the loss of value, may affect the need for the determination of the value of the assets and liabilities of deferred tax. This should be done in accordance with the National Accounting Standard (hereinafter referred to as KSR) 2-Income tax.

1.10. Where an entity conducts an employee benefit programme, the provisions of this Standard shall not apply to the assets associated with those programmes.

1.11. Some categories have been introduced to the Standard, not separately identified in the Act, in order to allow clear presentation of how the value of the assets is valued and the write-down of the assets is determined according to the accounts. It is explained in Chapter II.

1.12. Whenever the standard refers to the proceeds or expenditure of cash, it is understood both by the proceeds or expenses of the cash and of its equivalents.

II. DEFINITIONS OF THE TERMS USED IN THE STANDARD

The terms used in the Standard concept mean:

2.1. Future economic benefits - tissue in a given asset or group of assets measurable potential contributing to the (controlling) entity of that component, either individually or jointly with other asset components, to:

● the production and disposal of products (products, services) and goods which are the subject of an entity's operating activities and the maintenance of investments from which an entity may, on the basis of reasonable grounds, expect future revenue of the measure cash, or

● limiting future operating cash expenses, or

● the conversion of its current form to future cash receipts, including when a chain of subsequent exchange of one form of an asset may be envisaged for another, but with an impact perspective, in the final bonfire, of cash,

● to reduce the expenditure on future repayment of current or future liabilities of an entity.

2.2. Future net economic benefits (net cash flow) -forecast cash inflows potentially related to the asset or group of assets, respectively, less the forecast cash expenses that are to be spent by that asset or by the asset group the forecast receipts of cash.

2.3. Procedure for determining the write-off of assets resulting from loss of assets values (hereinafter referred to as replacement revaluation procedure ) -a series of analyses and arrangements at the balance sheet date, which results in the determination of the amount of the write-off of the entity's assets, resulting from its accounts at the balance sheet date, and the updating of the value of the update the balance sheet of these assets (i.e. the values presented in the accounts and the financial statements on the same balance sheet date).

2.4. Impairment of assets - detected in progress revaluation procedures the probability that the entity controlled by the asset in a significant proportion or in its entirety will not be future net economic benefits the corresponding at least the value resulting from the accounts at the date of the carrying-out of the balance sheet.

2.5. Assets that have an economic benefit individually - asset items, which have a significant capacity to provide independent economic benefits to the entity. Such an ability is determined where a single asset can be assigned to a particular type of future economic benefits resulting from the use (s) of (use) or maintenance.

2.6. An economic benefit site (called interchangeable site)- the smallest identifiable team of assets that are working out economic benefits group, to a large extent independently of economic benefits originating in others assets that have an economic benefit individually or other Facilities for economic benefits.

2.7. Common assets - other than the value of the company's assets, which contribute to the creation of the future net economic benefits of the entity by using them in conjunction with the functions of at least two components assets that have an economic benefit individually and/or Facilities for economic benefits.

2.8. Economic benefits of group economic benefits -Site Economic benefits along with the assigned to it common assets, goodwill or negative goodwill.

2.9. Value Loss Assessment Object -an asset which has an economic advantage, individually or in assets, which have a group economic benefit, including those assigned to them in accordance with the rules laid down in these Standard commitments, reserves and revenue future periods that are likely to be lost entirely or in part to the ability to benefit economic benefits. Liabilities, reserves and future periods shall be taken into account only if the value of the recoverable amount is determined (cf. Paragraph 2.12) of the object is not possible without them.

2.10. Commercial value -listed in Article 7 ust. 1 p. 1 of the Act and determined in connection with the application of the principle of prudent valuation of the future value of the net economic benefits of the impairment assessment object, determined on the assumption that there is an active market (cf. point 2.17) to this object. This value corresponds to net sales price (within the meaning of Article 28 para. 5 of the Act) of the given impairment assessment object. If the net sales price available on the active market cannot be determined, the commercial value of the impairment assessment object shall be determined by its estimate fair value (within the meaning of Article 28 para. 6 of the Act) less the expected to be incurred and directly assigned to the disposal operations of the impairment assessment object of the cash expenses constituting a total of the sales (disposal/liquidation) costs of this facility, excluding financial costs and income tax burdens.

2.11. Useful Value - listed in Article 7 ust. 1 point 1 of the Act and determined in connection with the application of the principle of prudent valuation of the economic suitability of an asset which in relation to a financial asset may be measured according to the rules set out in the Standard, and in relation to Fixed assets-discounted value future net economic benefits of Impairment Assessment Object as determined on the assumption of continued use (maintenance) 1 .

2.12. Recovered Value -higher of two values: (a) commercial value or (b) the value of the impairment assessment object.

2.13. Valuation level of the carrying amount of the asset - specified in the Act or Regulation of 12.12.2001, which depends on the type of asset, the category followed by its balance sheet valuation. This can be, for example, a commercial value, i.e. the net sales price and, in the absence of any other fair value, the fair value (Article). 28. paragraph 1 points 1, 1a, 2, 3, 4 and art. 28 para. 7 of the Act), the value resulting from the application of the method of property rights (art. 28 para. 1 point 4), the purchase price or the cost of production not higher than the net sales price at the balance sheet date, the net sales price (Art. 28 para. 1. point 6 of the Act), market price, purchase price or market price, depending on which of them is lower and in justified circumstances-fair value (art. 28. paragraph 1 item 5 of the Act), the amount of the required payment determined with the exercise of caution (art. 28 para. 1 points 7 and 35b of the Act), adjusted purchase price (§ 16 points 1 and 2 of the Decree of 12.12.2001).

2.14. Extract to update the value of the asset caused by the loss of value - a surplus of the excess value of the asset resulting from the accounts at the balance sheet date of the carrying amount over the balance sheet at the balance sheet date.

2.15. Write-down of the asset value caused by the permanent loss of its value - a write-down of the value of the permanent asset fixed for Impairment Assessment Object to which a permanent impairment was established.

2.16. Reversal of the write-down of the asset caused by the loss of value -the value determined as a result of revaluation procedures to be taken on a balance sheet date which, in duly justified circumstances, affects the carrying amount of the asset fixed for that day by reducing the current balance sheet a write-down of an asset that is caused by a loss of value.

2.17. Active Market - The market in which: (a) the goods traded are homogeneous in nature, (b) there are practically always buyers and sellers who are interested in the goods in question, (c) information on the prices of these goods is widely available.

III. Conditions of use and steps of the asset valuation update procedure

3.1. The balance sheet valuation of the assets taking into account the potential loss of their value shall be preceded by an assessment of the role which the assets under control of the entity will fulfil in the future.

This assessment shall result in the determination of which assets are used in the entity for operating activities and which are held as investments.

3.2. Subsequently, according to the accounting policies adopted, an entity shall determine the valuation level of the carrying amount individual asset items.

3.3. The assets shall be assigned to those assets, the associated liabilities, the reserves and the revenues of the future periods, which are the possibility of drawing on the future economic benefits of the asset. (for example, this is where the divestment of an asset can only occur inseparable from the assignment of an obligation.) The purpose of this attachment is to indicate in respect of which assets the determination of their economic benefits requires account to be taken of the liabilities, provisions and revenues of future periods affecting their value.

3.4. Another condition for use procedures for revaluation of assets is to determine the economic benefits that these assets will bring to the entity in the future. Such information should be provided in the unit, trustworthy and efficient, the business planning system, which allows for reliable determination of expected economic benefits, both for the assets used in the business on the operating system, as well as being held as investments.

It is important that the expected economic benefits, both from the assets used in the operations and from the investment (regardless of the arrangements of the planning system adopted for the management of the business of the entity), can be assign to assets that have an economic benefit individually and to assets that have a group economic benefit.

3.5. Procedure for determining the write-off of assets resulting from a loss of value includes the following steps:

(a) assessing the need procedures for updating the valuation of certain assets against loss of value (Chapter IV),

(b) the identification of the assets that have an economic advantage individually and the establishment of the impairment assessment facilities (Chapter V),

(c) the assessment of whether there has been a loss of value and the determination, where necessary, of a write-off of the value of the assets which have an economic advantage individually (Chapter VI):

-measured at market value, fair value or by the equity method (paragraph 6.1),

-valued in the amount of the required payment or at the adjusted purchase price (point 6.2),

-measured at the purchase price or the cost of manufacture or the revalued value (paragraph 6.3),

(d) the identification of the assets that have an economic benefit group and the establishment of impairment assessment facilities (Chapter VII),

(e) the assessment of whether there has been a loss of value and the determination, where necessary, of a write-off of the value of assets which have a group economic benefit (Chapter VIII), covering:

-the calculation of the resulting value of the economic benefits of the group (point 8.1) resulting from the accounts,

-the establishment of future net economic benefits (point 8.2),

-the establishment and settlement of the write-off of assets which have a group economic advantage (paragraph 8.3).

3.6. In subsequent periods, following the procedure for the revaluation of assets, it may be appropriate to increase or reverse the write-off of assets previously carried out in the carrying-out of the carrying-out of the balance sheet. They have an economic advantage at a time and a group. Changes to the previously made write-down do not constitute a basic error within the meaning of Article 4 (1). 54 para. 3 Accounting Act. The procedure recommended in case of the need to change the amount of the update write-down prior to the update shall be submitted to Chapter IX.

3.7. Whenever a procedure for revaluation of assets is carried out and a reversal of the write-off of their valuation, including evaluations, estimates and calculations carried out, needs to be properly documented in the internal evidence on the basis of the records. in the accounting books and disclosures of impairment of assets according to Chapter XI of the Standard.

IV. Assessment of the need to conduct the procedure for determining the write-down of assets

4.1. At least every balance sheet date, an entity shall determine whether there is a need to carry out procedures for determining the write-down of assets resulting from the loss of value- both for assets used for operating activities and for investments, whether or not they are available for use (i.e. ready, ready-to-use) or not yet. This check is useful for testing circumstances established on the basis of external and internal sources of information.

4.2. Examination of the need for procedures for the revaluation of assets based on circumstances to be established on the basis of external sources of information shall consist of consideration of at least the following:

(a) Are there any circumstances indicating that the entity may not be able to obtain, for reasons attributable to it, its monetary amounts, other financial assets, assets or benefits? This may, for example, be triggered: the occurrence of negative changes in the technological, market, economic, legal and other environments in which the issuers of financial instruments held by the entity, its debtors and other counterparties, and other counterparties, are active, and which give rise to significant financial or other difficulties in their activities, failure to meet the conditions of the contract by issuers, debtors or other counterparties, and failure to pay or arrears due interest or nominal value of the ingredient assets, high probability of liquidation, bankruptcy or restructuring the activity of issuers, debtors or other counterparties, the disappearance of the active market on the assets held, due to financial difficulties or other relevant issuers, debtors or other counterparties with the asset related.

The disappearance of an active market due to the withdrawal from the market of a financial instrument, good or benefit resulting from economic considerations and unforced difficulties, is not evidence of impairment of the assets held by the entity. It is also not considered to be a loss of value within the meaning of the Standard short-term decline of the value (market, fair, determined in accordance with the equity method or at the adjusted acquisition price) of the asset for which the Accounting Act or Regulation of 12.12.2001 r. provides for such a level of balance sheet valuation. However, for objective evidence of loss of value of assets measured at the balance sheet date, such values are considered to be significant and protracted decrease in their value (market, fair, determined in accordance with the equity method or in the the adjusted purchase price) below the value established when they are entered into the accounts of the entity. Such a decrease in value indicates that the expenditure incurred on the acquisition of asset items will not be recovered.) To be carried out procedures for revaluation of assets they may also indicate changes in the domestic or local economic situation, such as, for example, the rise in unemployment, falling property prices, falling prices of certain goods, etc., if they may have a negative impact on the implementation of contracts concluded with issuers, debtors and other counterparties.

b) Is the recovery of the costs incurred for the execution of a long-term service is likely despite: the dubious validity of the contract, the pending court hearing related to the contract, inability to complete the entity or the other party of the contract and resulting from the Your duties?

(c) Is the expected distribution over time of the proceeds expected from a particular asset to be changed? This may be the case, for example, where, for economic or legal reasons, an entity will grant to the debtor or other counterparty the amenities arising from its financial difficulties or any other entity that it would otherwise not have admitted.

(d) Is the loss of the market value of the individual assets that occurred during the reporting period is significantly higher than the loss that could have been expected as a result of the passage of time and normal use?

(e) Is there a decrease in the prices on the recipient markets or price increases on the supplier markets on which the entity is active during the reporting period or until the date of preparation of the financial statements?

(f) Whether the costs necessary to sell the products, goods, etc. are increased. to effect?

(g) Are the financial instruments and investments in which the entity is using adverse changes in the value of the financial instruments and investments?

(h) Whether during the reporting period or in the near future there will be significant adverse effects on the entity, changes of a technological, market, economic or legal nature in the environment in which the entity is active or also on the markets to which the entity's assets are used?

(i) Whether there has been an increase in market interest rates or other market return on investment during the reporting period and whether this increase is likely to affect the discount rate used for the calculation usage values of a given asset and significantly lowers the present value of the expected net economic benefits from this component?

(j) Whether the resulting value of the net assets of the entity on the balance sheet date is higher than the market value or fair share of the shares issued by that entity?

(k) Should there be any other indication that the value of some (or all) of the assets in the accounts may be regarded as arising from the accounts at the balance sheet date, is it sensitive to the existence of the circumstances and changes that have been identified?

4.3. Examination of the need for an asset valuation update procedure based on circumstances established on the basis of internal sources of information shall consist of consideration of at least the following:

(a) Is there any evidence that there has been physical damage to the tangible assets of the asset-e.g. This follows from the findings of a physical inventory, production reports, or impairment of stocks or receivables due to counterparty failure to pay deadlines-as evidensed by the outstanding components of the asset, both long-and short-term?

(b) Whether during the reporting period it is or likely to occur in the near future, substantial, unfavourable to the entity, changes in the scope or the manner in which all or only some of the asset components are, or- as expected-will be used?

(c) Does the entity intend to refrain or restructure the activity to which the specified asset components are used? Does it intend to discontinue or eliminate any asset items before the previously anticipated deadline?

(d) Is there any evidence that the economic effects of the use of some of the assets are, or will be, worse in the future than expected?

(e) Can the value of some (or all) assets of the assets resulting from the accounts at the balance sheet date be regarded as sensitive to the occurrence of other circumstances and changes found?

4.4. The test referred to in point. 4.2 and 4.3, for the establishment of assets whose ability to bring economic benefits in the future is most likely to be changed for the worse in relation to the original plans to accompany them (acquisition or production). In carrying out this study, a professional judgement of the circumstances of the circumstances, including those mentioned above, is necessary.

4.5. If it is found that there is no circumstances in the balance sheet date, indicating the need for procedures for updating asset valuation, Unit of measurement at the balance sheet date:

-assets valued in accordance with the Act or the Regulation of 12.12.2001. in the market value, fair value, determined by the property rights method or at the adjusted purchase price-in these values,

-the remaining assets-in their net value resulting from the accounts at the balance sheet date, taking into account in the case of assets held by foreign currencies of their current on the balance sheet date.

4.6. On the other hand, if it is found that one or more of the circumstances referred to in point (s) are present on the balance sheet date. 4.2 and 4.3, the unit carries out further stages procedures for the revaluation of assets against the likely loss of their assets (Chapter V-VIII).

4.7. Reassessment of the need for the procedure revaluations of assets against the loss of their assets shall be carried out no later than the next balance sheet date in an analogous manner, covering all assets of the unit again. During the subsequent analyses, special consideration shall be given to those assets whose value has already been adjusted in advance by the updating write-offs and those whose value is most sensitive to the circumstances set out in point 4.2 and 4.3.

Example 4.1. Indications from internal sources of information showing the need to carry out an update procedure for the valuation of assets caused by the loss of value

The JG unit at the end of the financial year concludes that:

1) provided for in its budget (financial plan) for subsequent years, the cash expenses associated with the operation of the building for rent (and being the most important component of the investment) are significantly higher than the amounts originally planned,

2) after the summary of the results of the operation of the building for the current period the entity also stated that the resulting result is significantly lower than the one expected in this period.

These facts were found to be evidence which could provide sufficient evidence of a serious change in the circumstances surrounding the operation of the building and, therefore, it was considered appropriate to carry out an update procedure for the valuation of assets on suspicion of loss of the building values.

V. IDENTIFICATION OF THE ASSETS THAT HAVE AN ECONOMIC BENEFIT ALONE AND THE DETERMINATION OF THE IMPAIRMENT ASSESSMENT FACILITIES

5.1. An entity shall identify the asset items that are considered to be impairment of the value of the assets that may be affected by the effects of the circumstances listed in Chapter IV, up to date at the balance sheet All assets affected by the circumstances indicating the probable loss of their value, i.e., are covered by the identification. assets used for operating activities and investments, with the exception of deferred tax assets and assets shown in the balance sheet at their nominal value (e.g. cash).

5.2. The determination of the impairment assessment facilities requires a professional judgement and a reasonable assessment, taking into account the nature of the activity, the existing experience and the unit plans associated with the use of the individual components of its assets.

5.3. Of the identified assets referred to in point 5.1, the entity first extracts-as impairment assessment facilities-the assets that have an economic advantage at a time (cf. Point 2.5).

5.4. In the event of unequivocal identification of an asset as having a significant degree of ability to develop an economic advantage, the entity shall include such an element (whether or not it is used) to an operational activity, or an investment), to a centre of economic benefits and is dealt with in the manner set out in Chapter VII. This may, for example, apply to a case where the use of a given asset is to some extent dependent on the use of another asset (e.g. The benefits of renting an investment property are linked to the provision of garage locations in another facility, which is primarily used for operating activities).

5.5. Some assets are present in a unit in significant quantities, have a similar nature, fulfil similar functions, are valued at the balance sheet date using the same rules and are related to similar risks. An entity may consider it justified to treat a group of such assets as a self-employed entity that has an economic benefit alone. In particular, it is justified in relation to financial instruments with similar credit risk characteristics, to the large number of commercial claims arising, similar to their origin, the nature of the debtor/counterparty, the rules of their reimbursement, to groups of stocks of homogeneous types and to the functions fulfilled. In rare cases, it may concern homogeneous, non-tangible assets, intangible assets, whether tangible or intangible investments. However, a condition for the recognition of a group of such assets as an asset for economic benefit is one at a time, however, that each component of the asset in question is used in the same (and on the same) terms and conditions, and that it has identical functions. economic, which can be considered to be carried out independently of the use of other assets of the entity, have a similar period of economic life in the unit and be depreciated using the same method and stakes; in addition, it should be the case very sensitive as other components of this group to the risks associated with the use of such assets. The possibility of treating a group of assets as one business of an economic advantage alone does not apply to assets that are individually significant, even if they do not meet in a unit of functions different than other assets of similar nature No

No component whose value loss is already certain may be included in the group of assets considered as an economic benefit individually. This feature, if it is included in a group, must be disabled.

5.6. If the entity has liabilities, reserves, or future income, it is related to the identified object of the impairment assessment that the value of the future economic benefits to be obtained by that object depends on the value of the from the value of those liabilities, provisions or revenues of future periods, such liabilities, reserves and future income shall be assigned to the impairment assessment object.

5.7. The analyses and arrangements in question shall be carried out on each day of the procedure for updating the valuation of assets.

5.8. It is important that, in subsequent periods, the entity should re-examine the economic role of each asset recognised as an asset that has an economic benefit, individually. If the economic role of a particular asset does not change, the entity shall continue to treat it as an asset that has an economic benefit, one at a time, and, for order, it shall record that fact in the records of the detailed assets.

5.9. If, in subsequent periods, there will be a change in the plans for the purpose or economic function of the asset, which has so far been considered to have been an economic advantage, one at a time, as it is, as the case may be, to its revised role -it will no longer be able to benefit from economic benefits, the entity, in accordance with point 5.4, shall include it in a group of economic benefits group.

5.10. Following the isolation-as set out in pence 5.1-5.9-for the assessment of the impairment of the economic benefits individually, the entity shall carry out the valuation adjustment procedures in accordance with the principles set out in Chapter VI.

VI. DETERMINATION OF THE WRITE-OFF OF ASSETS WHICH HAVE AN ECONOMIC ADVANTAGE INDIVIDUALLY

6.1. Assets valued at market value, fair value or by the equity method.

6.1.1. An entity shall determine which of the permanent and financial assets identified in the manner set out in Chapter V and which are considered to have an economic advantage individually, should be in accordance with the Accounting Act and the Regulation of 12.12.2001. and accounting policies adopted by the entity-measured at the balance sheet date at market values or at a specified fair value or by the equity method.

In particular, they shall be:

(a) investments in immovable property and intangible assets which are included in the investment, if it is valued at the market price or at a certain fair value (Art. 28 para. 1 point 1a of the Act),

(b) long-term shares in subordinate units, if they are valued at fair value or by the equity method (art. 28 para. 1 point 4 of the Act),

(c) long-term interests in other entities, if they are measured at fair value (Art. 28 para. 1 point 3),

(d) long-term investment, other than those mentioned in points (a) to (c), if it is measured at fair value (Art. 28 para. 1 point 3 of the Act),

(e) short-term investments measured at market value (values), and short-term investments for which there is no active market and which are valued at fair value (Article 3 (1) (a)) (c) (d) (e) of the EC 28 para. 1 point 5 of the Act).

6.1.2. In the first place, the entity determines at the balance sheet date-according to the asset-specific valuation level of the carrying amount-their market value (net sales price), otherwise the estimated fair value or the value determined by the method property rights, guided by the provisions of art. 28 para. 6, art. 44b and art. 63 of the Act and § 14 of the Decree of 12.12.2001. and other rules that allow these values to be determined reliably.

6.1.3. The entity then compares the value of the asset as determined in accordance with the point. 6.1.2 with its value as a result of the balance sheet date from the accounts. A reduction in the value of a given asset shall take place when its value resulting from the accounts exceeds its value determined in accordance with the value of the carrying amount of the carrying amount to be determined for that asset. Otherwise, the value of the asset in question resulting from the accounts at the balance sheet date shall be increased to the level prescribed by the carrying amount of the carrying amount.

6.1.4. Appropriate to the arrangements referred to in point. 6.1.3, the value of such assets at the date of the balance sheet valuation resulting from the accounts shall be adjusted in plus or in minus, The valuation differences relate, depending on the investment or operational nature of the valued asset, and in accordance with the provisions of the Accounting Act or the Regulation of 12.12.2001. concerning these assets, on the financial result of the entity (income or financial expenses, other operating income or operating expenses) or, respectively, on the capital from the revaluation adjustment (Art. 35 par. 3 and 4 of the Law and § 21 (1) of the (2) 2 (2) of the Decree of 12.12.2001. In the consolidated financial statements, in the case of valuation of participation in another entity by the equity method, the share as a result of this entity is displayed in the profit and loss account in a separate line, as " Profit (loss) of shares in units subordinated to the valued method of property rights '.

6.1.5. In the case of financial assets measured at fair value, when the effects of the revaluation are transferred to the capital from the revaluation, in accordance with Paragraph 21 (1) (a) of the Article 2 (2) of the Decree of 12.12.2001, which is cumulative on the capital of negative write-off, is possible for as long as they are not of a permanent impairment. At the balance sheet date on which the entity determines the occurrence of a persistent impairment of the value of the valued asset-in accordance with § 24 (1) (a) of the 2 point 2 of the Decree of 12.12.2001. -the difference between the acquisition price of the asset and its fair value on the balance sheet date shall be determined. The difference shall be determined by the amount of the write-off of the asset. Under Paragraph 24 (1) of the 1 point 2 of the Decree of 12.12.2001. the entity carries out this deduction as follows: moves the accumulated loss to that day in the revaluation capital relating to that asset to the financial costs, and then the difference between the value of the asset resulting from the The accounts and its fair value at that date shall be recognised in financial costs, with a simultaneous reduction in the value of the asset, bringing the value of the valued asset to its fair value as at the balance sheet date.

Any further write-off of the fair value of such an asset shall be recognised by the entity in financial costs, if any further (on the next balance sheet days).

6.1.6. For debt financial instruments, measured in accordance with § 21 paragraph. 2 points 2 and 24 (2) 2 point 2 of the Decree of 12.12.2001, the entity determines the fair value at the balance sheet date, by which the current value of the expected cash flows is understood to be discounted using the current market rate of return applicable to the like financial instruments. If the revaluation of the fair value at the balance sheet date results in a reduction in the capital from the revaluation of a valuation below zero, the entity shall determine whether the reduction in the carrying amount of that asset is due to indications of a lasting loss values. Where such a case exists, the difference between the balance sheet date between the resulting value of the debt instrument in the adjusted purchase price, calculated on the basis of the existing rules and its fair value, constitutes a write-off of the balance sheet date. updating the value of the measured asset due to a permanent loss of value. The current value of the revaluation capital related to this asset and the write-off of the entity shall be recognised in the profit and loss account, while at the same time leading the value of the valued asset to its fair value. fixed at the balance sheet date. From the date on which the impairment loss is made, the interest income shall be calculated at the market rate of interest used to determine the fair value of the asset's overvaluation.

Otherwise, the effect of a reduction on the balance sheet date of the fair value of such an entity shall be shown in the revaluation capital.

6.1.7. If the value of an overvalued asset increases during subsequent periods, and this increase may be linked to the previously identified causes of the loss of the asset, reversing the write-down of the asset is included in the revenue. to the amount of that write-off.

6.1.8. In the case of a financial instrument that cannot be measured at market value or otherwise fixed fair value (for example, untreated equity instrument), and there is objective evidence that there has been a loss of its value, the amount of the update write-off caused by the loss of its value unit shall be fixed at the balance sheet date as the difference between the value of that component the assets resulting from the accounts and the present value of the estimated future net economic benefits discounted at the current market rate of return for similar financial assets. The write-off of the entity is so established that the entity refers to financial costs. In the future, this copy cannot be reversed.

6.1.9. For non-financial assets for which a fair value cannot be measured reliably, the entity shall use the procedure for determining the write-off of assets resulting from the loss of the value of the assets at the purchase price (purchase price) or in the cost of manufacture (point 6.3).

6.1.10. Where it is established that there are objective indications in relation to the financial asset valued by the equity method, that the goodwill associated with the entity's share of the fair value of the entity's net assets is present subordinated to no economic benefit, the entity determines the recoverable amount of this asset. For this purpose, it sets a higher of two: the commercial value of that asset or its useful value expressed as the current value expected-through its maintenance-future net economic benefits, discounted at application the current market rate of return for similar financial assets. If the recoverable amount of that asset is higher than its value established by the equity method, it is considered that there has been no loss of the goodwill associated with that asset. Otherwise, the entity shall determine the write-off of the goodwill associated with the asset in the amount of the difference between the recoverable amount determined on the balance sheet date and the value determined on the same day by the equity method, a maximum of the value of the company established for this asset on the balance sheet date (ie. after taking into account the accumulated depreciation and the existing update write-off). The amount of the write-off of the updating entity shall be recognised in the profit and loss account as other operating expenses.

Such a determined write-off of the goodwill which is associated with the asset feature, which is valued by the equity method, does not turn back. The write-off of the value of this asset requires the adjustment of the depreciation set for the goodwill included in the value of that asset.

If the difference between the recoverable amount of the recoverable asset and its value determined on the same day by the equity method exceeds the value of the goodwill established for that asset on that balance sheet date (ie. after taking into account its accumulated depreciation and the existing update write-off), the entity shall treat this surplus as a write-off of the entity's share of the fair value of the net assets of the subordinated entity.

The write-off of the value of the entity's share in the fair value of the net assets of the subordinated entity may be reversed only if it is established that the reasons for the permanent impairment of the value of that asset are established.

Example 6.1. Determination of the write-off of financial assets with which interest income is not associated, measured at the fair value of the fair value through capital from revaluation

1. In the JG unit at the end of the financial year, it was found that in the previous financial year there were events in its economic environment, which allow it to believe that an update procedure for the valuation of assets is justified on the balance sheet date. The amount of money that is to be made by the

2. The circumstances indicate that the loss of value may relate to, among other things, one asset at fair value, classified by the entity into the assets available for sale and valued-in accordance with the applicable rules in the to this extent and to the accounting policies adopted by the JG, through the valuation capital of the revaluation.

3. The acquisition of this asset by the JG took place some time ago and was associated with an expense of 10 000,-j.p. (cash units). In the periods following the introduction of this component into the accounts up to the balance sheet date, the fair value of that component was fixed at each balance sheet date and is currently 9000,-i.e. the accounts show that the balance sheet is accumulated until the date of the balance sheet valuation date. The revaluation capital associated with this asset is a negative value of 1000,-j.p.

4. The entity has determined that the fair value of the asset at the balance sheet date is 7000,-j.p. Since the acquisition of that component for 10000,-j.p. has incurred a loss on it in the amount of 3000,-j.p. (i.e. 10 000-7000). In view of the circumstances of the JG, it is of the opinion that the loss of value is permanent, as more favourable conditions cannot be expected in the long term, due to the serious financial difficulties of the individual. The JG therefore decides to carry out the relevant records in the accounts and disclosures resulting from the revaluation procedure caused by the permanent loss of value by the valued asset.

5. A write-off of the asset at the balance sheet date shall be 3000,-j.p. and the entity shall disclose that amount in the notes to the financial statements.

6. In the accounting books, the entity reduces the value of the asset and charges the profit and loss account for the amount of 2000,-j.p., i.e. the difference between the fair value of that asset at the balance sheet date (7000 j.p.) and its value resulting from the accounts for that day (9000 j.p.). In addition, it transfers the negative value of the revaluation capital (-1000 j.p.) to the profit and loss account related to the valued asset.

7. In this way, the JG fixes the carrying amount of the asset (7000 j.p.) at the fair value level at the balance sheet date, charges the total financial cost of 3000,-j.p. and discloses the update write information in the amount of 3000,-j.p.

Example 6.2. Determination of the write-off value of non-financial assets measured at the fair value of the balance sheet date

1. In the JG unit at the end of the financial year, it was found that in the past financial year there were circumstances that indicate the need to carry out an update procedure at the balance sheet date (due to permanent impairment) the value of the property an investment value at market value.

2. The purchase price of this property amounted to 30 000,-and its value shown in the accounts-32,000,-. In recent periods, there have been changes in the market value of the property, which both increase and reduce the value of the property, respectively, for the benefit of the remaining operating income or the burden of the remaining costs. operational.

3. At the balance sheet date, the market price of the property amounts to 24,000,-; the entity determines that the reduction of its value is 8,000,-(32,000-24,000), charging this amount the remaining operating costs.

4. An entity therefore determines the carrying amount of the property in the amount of 24000,-including in the other operating costs the amount of 8000,-and discloses in the notes to the financial statement an amount of 8000,-as a write-down of the value of the value of the value property.

Example 6.3. Determination of the write-off of the financial assets with which interest income is measured at the fair value of the fair value through the revaluation capital

1. The business unit of the JG for two years has the debt financial assets of another entity that it classified in the assets available for sale and valuation in accordance with accepted accounting principles (policy) at fair value through the capital of the revaluations. The initial value of this asset was 500 000,-and was included in the company's accounts under the date of 1.01.20A1.

2. On the day of the initial recognition of this asset, the JG determined the original effective return rate of 13,8165% (as shown in the example 6.5).

(3) In the light of the initial effective interest rate, the entity has determined that, in the event of the distribution of the payments provided for in the contract concluded two years ago, the financial asset should be shown in the following years. the financial statements drawn up for the following balance sheet days at the adjusted purchase price as follows:

Per day

Revenue from Title
percentage
(IRR x SCN)

Adjusted purchase price (SCN) *

Initial concept 01.01.20A1

500,000

31.12.20A1

69 083

424 083

31.12.20A2

58 593

337 676

31.12.20A3

46 655

239 331

31.12.20A4

33 067

127 398

31.12.20A5

17 602

0

* The calculation method see the example 6.5.

4. At the date of the balance sheet valuation, the JG accumulated the capital from the revaluation of that asset in the amount of 25 917, which was due to the fact that at the end of the year 200A1. the fair value of this instrument, determined at the current market rate of return, was 450,000,-.

(5) As at 31.12.20A2, JG states the circumstances indicating the serious economic difficulties of the issuer of the financial instrument; it is already certain that the JG has to establish a different distribution of the cash flows associated with this asset, as they occur conditions for permanent loss of its value.

6. At 31.12.20A2 The JG established the fair value of this asset by discounting the expected proceeds according to the new cash flow distribution using the current market rate of return, which for similar financial instruments amounts to 15,4473%:

Per day

Fair value of expected cash flows according to the new payment distribution

31.12.20A3

86 620

31.12.20A4

75 029

31.12.20A5

64 990

31.12.20A6

56 294

31.12.20A7

17,067

Total

300,000

7. An entity, confirming the permanent loss of the value of this asset, shall determine a copy updating its value in the following manner:

Day
balance sheet

Adjusted Acquisition Price (SCN)

Fair value

Update copy due to loss of value

31.12.20A2

337 676

300,000

37 676

Balance sheet value

300,000

8. An entity shall be exerting (reversing) positive write-downs on the capital of the revaluation in the amount of 25 917,-debit the financial cost of the write-off of the asset to the fair value set at the balance sheet date and reveals a write-down of the value of this asset caused by a lasting loss of value of 37 676,-.

Example 6.4. Determination of the write-off of assets valued at the balance sheet date by the equity method

1. Significant investor, JG states at the end of the financial year that in the previous financial year there were an economic environment of an association with the entity associated with it, which caused the associated entity to suffer serious difficulties. economic.

2. The investment made 5 years ago in the shares of this unit (about the initial value, i.e. in the purchase price of 40 000,-j.p. and 30% of the ownership rights to the net assets of the associated company) shall be valued in the balance sheet of the JG by means of ownership rights.

3. On the day of the acquisition of these shares, JG fixed the value of the company of the associated company in the amount of 5000,-j.p. Thus the acquisition price included on that date the fair value of the net assets of the associate in the amount of 35,000,-j.p. and the value of the company-5000,-j.p. The significant investor has also established a 10-year period of amortisation of this value of the company.

4. The financial results achieved by the associated company in previous periods (since the acquisition of its shares) were different: in the first two years there was a gain, in the third year there was a loss, but the value of shares exceeded the price of their acquisition (amounted to 47 000,-j.p.). In the fourth year, the loss of the associated company was significant and the participation in that loss in accordance with the equity method has resulted in the carrying amount of the investment (shares) fixed at the end of the fourth year being lower than its initial value and was 36,000,-j.p.

5. The end of the financial year (the fifth year of maintenance of this investment) was also not a successful entity. The participation of the JG in the loss of the associated entity amounted to 3500,-j.p. At the balance sheet date, the value of this investment resulting from the accounts and determined by the property rights method is 32,000,-j.p. This amount includes the value of the company-2500,-(i.e. 5000-5 x 500) and 30% share in the net assets of the associated entity in the amount of 29 500,-(i.e. 35.000 + 8500-10 500-3500).

(6) In view of the existence of a permanent loss of value, the entity concludes on the balance sheet date that, since the acquisition of the shares for 40 000, the entity has suffered a loss of 8000,-j.p., and the circumstances indicate that more favourable results could not be expected. the existing contingent causing serious economic difficulties of the associate's undertaking. As a result, JG undertakes the procedure for determining the write-off of this investment due to the sustained loss of value and determines the recoverable amount of that investment in the amount of 30 000,-j.p. The difference between the amount of 32,000,-j.p. and the recoverable amount (30 000 j.p.), i.e. 2000,-j.p. JG regards as a write-off of the goodwill associated with this associated company caused by the permanent loss of capacity to bring economic benefits to the JG and to be recognised in financial costs.

(7) Finally, at the balance sheet date-JG shows the value of the investment in the associate in the amount of 30 000,-j.p., in the balance sheet, and reveals in the notes an additional copy updating its value in the amount of 10 000,-j.p. At the same time, JG verifies the rules depreciation, in future periods, of the remaining value of the company (500 j.p.) associated with the affiliated entity.

8. Disdisclosed in the notes an additional copy updating the value of the investment in the associate in the amount of 10 000,-j.p. is the difference between the recoverable amount of this investment and its value resulting from the accounts at the date of valuation Following the application of the equity valuation procedure, the existing write-downing of the investment resulting from the participation of the JG in the net asset increment of the associate (ie. a negative amount of 5500 j.p.), the existing depreciation write-offs of the associated company's goodwill (ie. 2500 j.p.) and a write-off of the company's value concerning this investment (2000 j.p.). This copy shall at the same time be equal to the amount of the financial cost burdens made at the balance sheet date in accordance with the valuation rules in force in this case.

6.2. Assets valued in the amount of the required payment and at the adjusted purchase price

6.2.1. An entity shall determine which of the fixed and financial assets identified in accordance with Chapter V and recognised as assets that have an economic benefit, individually, should be in accordance with the Accounting Act and the Ordinance of 12.12.2001. and the entity's accounting principles (policy), measured at the balance sheet date, in the amount of the required payment, subject to prudence (in accordance with Art. 28 para. 1 item 7 of the Act) or at the adjusted purchase price (in the manner prescribed in § 16 paragraphs 1 and 2, § 24 (2) of the Act). 1 and 2 (1) of the Regulation of 12.12.2001. These are receivables and other financial instruments that are not measured at fair value.

6.2.2. The amount of the required payment of debt financial instruments, which is not measured at fair value, is the value established at the level of the adjusted purchase price.

6.2.3. The method of determining the amount of the required payment of the duty with prudence shall depend on whether the claims arising from the following are:

(a) the issuance of cash and the repayments of financial assets (financial assets included in financial instruments),

(b) the sale or issue of goods or services and shall be repaid in cash (financial assets not included in financial instruments),

(c) the issuance of monetary assets and regulated by the supply of goods or services (assets equalled with tangible or intangible assets; these include, in particular, advances on supplies of stocks, services, fixed assets, intangible assets and legal).

6.2.4. Amount of payment required due to the issuance of cash and the repaid financial assets (paragraph 6.2.3a) classified by the entity into one of the categories: loans granted and own receivables or financial assets held until the due date, sets the adjusted purchase price not minus the write-off caused by the loss of value (paragraph 6.2.7).

In accordance with Paragraph 16 (3) of the Decree of 12.12.2001. amounts receivable with a short term of maturity for which no interest rate has been set, pursuant to Section 16, point 1, of the Regulation of 12.12.2001. to be valued in the amount of the required payment determined in accordance with point 6.2.8, provided that the entity considers that it does not differ significantly from the current value of the cash flows expected by the entity from that claim, as determined by the application of the assigned interest rate receivables.

6.2.5. Amount of payment required due to the sale or issue of goods or services and the payment of money assets (paragraph 6.2.3b). determines the adjusted purchase price not minus the write-down caused by the loss of the value that the entity calculates as the current value of the expected future cash flows at the market rate of return for debt financial instruments similar characteristics. In such a case, it is assumed that the market rate of return and the effective rate of return are equal. The difference between the nominal value and the initial value of the receivable shall be settled at a time with the effective rate of return in accordance with the point. 6.2.7.

For claims with a short term of maturity, i.e. up to 3 months, the amount of the required payment may be determined as specified in Section 6.2.8, if the entity considers that this value does not differ significantly from the current value of the cash flows expected by it from that claim, as determined by the application of the interest rate assigned to it.

6.2.6. The amount of the required payment of an advance on the supply of stocks, services, fixed assets, intangible assets (paragraph 6.2.3c) determines the value of the goods or services the receipt of which is expected to be received from the counterparty, entity at the balance sheet date at the level of the selling price (purchase) of goods or services plus VAT (if applicable). This may be the totality of this value or a part of that value, determined according to the contract, which was accompanied by an advance. In the event that the payment of the claim is to take place in the form of the delivery of goods or services from the import, then the amount of the required payment should take into account the average rate of the relevant currency determined by the NBP from the balance sheet date. The entity shall fix the exchange differences associated with such advance on that day. (If the claim amounts to an advance on the acquisition of fixed assets or intangible assets which will form, together with other asset components, the centre for economic benefit, the establishment of a possible write-off of the assets and of the assets of the asset, the updating amount of this claim is made in accordance with the provisions of Chapter VII-VIII of the Standard, but taking into account that the negative exchange rate differences established for that claim on the balance sheet date do not affect the amount of the write-off of the asset caused by a loss of value.).

6.2.7. The adjusted purchase price not minus the write-off caused by the loss of value corresponds to the amount at which the asset was entered in the accounts (initial value), less the proceeds of the repayment (eg. of the loan instalments) adjusted by the cumulative amount of the difference between the initial value of the component and its value within the maturity date, calculated by an effective interest rate. The adjusted price for the acquisition of claims expressed in foreign currency shall be determined first in a foreign currency by the application of the effective interest rate assigned to that charge. In the foreign currency, the amount of the required payment fixed at the balance sheet date shall then be calculated taking into account the average rate of that currency determined by the NBP from the balance sheet date.

6.2.8. The amount of the required payment of a short maturity requirement (up to 3 months), regulated by cash, for which the interest rate has not been determined shall be the nominal amount of the receivables. In special cases, the amount of the required payment may increase the contractual penalties, the court costs charged and the delay due in payment of the contractual or statutory interest, the payment of which, according to the state at the balance sheet date, expects the entity. An entity shall not charge any interest due to its counterparty if it does not claim the amount of interest to be paid to its counterparty. If the payment of the receivables is to occur in the foreign currency, the amount of the required payment in zloty shall be determined by applying the average rate of that currency determined by the NBP from the balance sheet date.

6.2.9. The entity shall update, at the balance sheet date, in the accounts the amount of the required payment in the manner specified in the point. 6.2.10-6.2.12, and then follow the recommendation given in the paragraph. 6.2.13.

6.2.10. The amount of the required payment of the debt and the adjusted purchase price of the debt financial instruments, determined in accordance with the point. 6.2.7, as shown in the accounts, shall be updated at the balance sheet date. For this purpose, it compares the value of the receivables resulting from the accounts with the amount of the required payment fixed on the same day and increases the value of that claim accordingly while recognising the financial revenues.

6.2.11. The amount of the required payment for a short period of maturity as determined in accordance with the point. 6.2.8 the entity's accounts shall be updated at the balance sheet date by means of its increase as financial revenue or other operating revenue, depending on whether or not the increase in the amount of payment required is due to statutory or statutory income. The contractual interest that the entity is expected to pay at the balance sheet date is expected by the entity or from other titles.

6.2.12. Amount of the required payment of the claims arising from the issue of the cash assets repaid to the supply of goods or services (it includes, in particular, advances on supplies of stocks, services, fixed assets, intangible assets) due to the balance sheet date of the accounts, the entity shall not update due to impairment if the amount of the required payment fixed at the balance sheet date in accordance with point (s). 6.2.6 is higher than the amount of the required payment shown in the accounts for the same day. If at the amount of the required payment fixed at the balance sheet date in accordance with point. 6.2.6 foreign exchange differences are affected, the entity does not treat them as sums affecting the amount of the write-off of such affiliation.

6.2.13. The reality of the amount of the required payment to be paid on the balance sheet date shall, in any case, be subject to verification in terms of the degree of probability of obtaining it (Art. 35b ust. 1 Accounting Act). For this purpose, an entity shall act in accordance with the point. 6.2.14-6.2.20.

6.2.14. First, the entity determines which receivables are on the balance sheet date of the expired, decommitted or uncollectible, as a result of which the amount of their required payment (including the value determined as the adjusted purchase price not reduced by a write-off) caused by a permanent loss of value) cannot be considered real. Their settlement will not be due to the expiry of the prescribed time of the recovery of the claim by civil action, which exempts the debtor from the obligation to pay it (statute of limitation), the dismissal of the counterparty from the obligation and the resignation of the collection of receivables (redemption), or because of a documented lack of possibility of enforcing receivables in a cost-effective (irrecoverable) way. In each of these cases, an entity shall write off such a claim on the accounts, debiting financial charges or other operating costs, depending on whether the charge is a financial instrument or not.

6.2.15. At the balance sheet date, an entity shall also determine those receivables which are neither expired nor remitted, nor irrecoverable, but are doubtful, which means that the due date for payment has already expired and/or is at risk of a high probability of irrevocability. The entity shall determine the value of the entity resulting from the accounts, if applicable after the conversion of the currency, and for such receivables a copy of the update shall be determined due to the loss of value taking into account the following rules.

6.2.16. The payment of the receivables is in particular doubtful in the event (Art. 35b of the Act):

-order of the debtor to be wound up or bankrupt; the entity shall then set up a write-off caused by the loss of value in the amount of the difference between the amount of duty resulting from the accounts and the value of the guarantee or other security of the claim of the liquidated liquidator or Judge to the Commissioner in the insolvency proceedings,

-dismissal by the court of an application for a declaration of bankruptcy or a write-off of insolvency proceedings, since the debtor's assets are not sufficient to satisfy the costs of insolvency proceedings; the entity shall then set up a write-off of the insolvency proceedings; the value of the full amount of the amount receivable resulting from the accounts,

-the debtor contests the receivables or arrears the payment, and the assessment of the debtor's financial and financial situation indicates that the payment of the receivables in the contractual amount is not probable; the entity shall then set up a write-off of the debt caused by the loss of value in the amount of the difference between the amount of duty resulting from the accounts and the value of the guarantee or other security of the receivables,

-increases in receivables that have already been updated because of the loss of value; the entity shall then set up a copy of the update due to the loss of value in the amount corresponding to the increase in receivables previously created and already being updated,

-when experience shows that, with a given type of activity or a group of customers (e.g. in energy, gas, telecommunications, municipal management, housing management, sellers, and other entities, there is a significant probability of irrevocability of the part of receivables both due to and not overdue; the entity then determines the overall write-off of the receivables due to the loss of their value in the amount that takes into account the maturity structure of the receivables (the distribution of receivables due to the terms of the sale of payment) and experience of the unit or the available characteristics to reliably determine the probability of repayment of the debt in whole or in part. For example, if receivable receivables from a group A recipients within a time range of 30-60 days from maturity are usually repaid at 80%, the update copy is 20% of the amount of receivables payable; if the receivables are due in the 61-90 days are repaid at 60%, the update copy is 40% of the amount of receivables payable during this time period; if the probability of payment of due receivables within 180 days and longer after the date The requirement is very low, a write-down of 100% of the amount is updated for these receivables. In the case of an analysis of the probability of repayment of receivables by another group of recipients, the reasoning may be similar, but the likelihood of regulation of receivables may be different and the same other will be the amount of the write-off of claims on that recipient groups.

6.2.17. Where it is established that it is likely that the entity will not receive the proceeds of the cash at the time and/or the value as established in the contract on receivables valued at the adjusted purchase price, then it shall set the amount that is possible to the to recover from a valued amount receivable. This amount is the current value of the cash flows expected by the entity in other than originally expected time and/or in other than originally assumed amounts of receipts, discounted by the original effective interest rate. The original effective interest rate is the rate that the entity has determined for that claim on the date of its original recognition in the accounts. A copy which updates the valuation of an asset due to a loss of value of an entity shall be determined by the amount of the difference between its value in the accounts in accordance with point (s). 6.2.10 and the amount of recovery determined in the above manner. Where it is established that it is likely that the entity will not receive the proceeds of the cash in time and/or the value as established in the contract relating to claims with a short maturity (up to 3 months) measured in value nominal, then it sets the amount to be recovered from the valued amount receivable. This amount is the current value of the cash flows expected by the entity in other than originally expected time and/or in the other than the amount originally assumed receipts, discounted at a market rate of return at the balance sheet date. A copy which updates the valuation of an asset due to a loss of value shall be determined by the amount of the difference between its value in the accounts and the amount of recovery that is fixed in that way. Where there is a need for further write-off of the asset valuation in subsequent periods, the market rate of return shall be applied as if it were the original effective interest rate.

6.2.18. If an entity determines that the current balance sheet price (purchase) of the goods or services received from the counterparty is expected to be less than the advance payment, and the advance is not refundable and does not occur the probability of total or partial non-execution of the supply, the entity shall determine the recoverable value of the goods or services. Where the claimed recovery is less than the selling price (purchase) of goods or services, the amount receivable (advances) shall be reduced by a copy of the update due to the loss of value determined in the amount of the difference between the advance and the lower the value of the shipment being recovered The difference shall be charged to the other operating costs. Where there is a likelihood of total or partial non-execution of the supply, the entity shall treat the advance as a dubious claim and proceed as set out in the point. 6.2.15.

6.2.19. The amounts of the updating write-off shall reduce the value of the receivables resulting from the accounts and charge in the case of: receivables recognised as financial instruments-financial costs, receivables-eg. incurred as a result of the sale or issue of goods or services-other operating costs. A write-off of the amount of receivables arising from the leasing contract concluded between the financing and the beneficiary shall debit the financial costs or other operating costs, depending on the type of financing activity.

6.2.20. Surplus of receivables compensated with the obligation to the same counterparty (in accordance with art. 498 and further statutes of 23 April 1964. Civil Code, Dz. U. of 1964. No 16 pos. 93 of late. zm.) is subject to a impairment assessment on the principles set out above.

Example 6.5. -Determination of the write-off of the value of the assets at the adjusted purchase price

1. The economic unit of the JG for two years has been owned by another entity, which it has classified in loans and own receivables. The initial value of this claim was 500 000,-and was included in the company's accounts under the date of 2.01.20A1.

2. Since the JG does not allocate this claim for sale, at the balance sheet date it shall be valued at the adjusted purchase price less a write-off of the valuation caused by the loss of value (and not at fair value).

3. On the day of the establishment of the receivables, the debtor has been established with the debtor that he will be repaying this charge in equal instalations for a period of five years after 145 000,-per year.

(4) On the day of the initial recognition of this claim (introduction into the accounts), the entity determined the original effective rate of return at the level of the internal rate of return for that claim (so-so-called). IRR) calculated by way of conversion of the formula:

infoRgrafika

where:

PV-the initial value of the asset,

IRR-effective interest rate (so-called. the internal rate of return),

i-the periods of anticipated receipts and expenditure related to the asset,

k-the period of last payment and/or last expenditure on a component of the assets at a fixed interest rate on the nominal value associated with that asset or the time after which the interest rate adjustment is closest,

NCFi-projected in the period and net cash flows associated with the asset.

5. By doing the appropriate transformation: 500 000 = 145 000/( 1 + IKR) 1 + 145 000/( 1 + IRR) 2 + 145 000/( 1 + IRR) 3 + 145 000/( 1 + IRR) 4 + 145 000/( 1 + IRR) 5 the unit has determined the original effective interest rate of 13,82% (more precisely 13,8165%).

6. An entity has determined that in the case of the maintenance of the method of payment provided for in the contract concluded two years ago (i.e. uninterrupted repayment of that claim and its related interest) that the amount owed by the original effective interest rate should, in subsequent years, be repaid in the accounts drawn up for the following balance sheet days in the the adjusted purchase price as follows:

Per day

Interest payments and receivables (NCFi = influencing)

Interest income (IRR x SCN)

Adjusted purchase price at the end of the period

Adjusted purchase price
(SCN)

Initial view
01.01.20A1

500,000

500,000

31.12.20A1

145 000

13,8165% x 500 000 = 69 083

500 000 + 69 083-145 000 = 424 083

424 083

31.12.20A2

145 000

13,8165% x 424 083 = 58 593

424 083 + 58 593-145 000 = 337 676

337 676

31.12.20A3

145 000

13,8165% x 337 676 = 46 655

337 676 + 46 655-145 000 = 239 331

239 331

31.12.20A4

145 000

13,8165% x 239 331 = 33,067

239 331 + 33 067-145 000 = 127 398

127 398

31.12.20A5

145 000

13,82% x 127 398 = 17 602

127 398 + 17 602-145 000 = 80

0

7. At 31.12.20A2 The JG has shown in the accounts receivables of the adjusted purchase price of 337 676,-. However, that day was found to be a point of view of the debtor's serious economic difficulties; it is already certain that the JG has to renegotiate the terms of the contract and that it should not lose the debt to be repaid and to set out a different repayment schedule.

8. It was established that the sum of the cash receipts expected from this claim (originally in the period 31.12.20A3-31.12.20A5) will not change and will continue to be 435 000,-. However, there will be changes in the distribution of these impacts over time; it is expected that they will occur as follows:

Per day

Interest payments and receivables (NCFi = influencing-expenditure and expenditure

31.12.20A3

100,000

31.12.20A4

100,000

31.12.20A5

100,000

31.12.20A6

100,000

31.12.20A7

35,000

Total

435,000

9. JG fixed at 31.12.20A2 r. a recoverable amount of this claim, discounting the expected receipts according to the new payment timetable using the original effective interest rate fixed earlier for that claim (13,8165%).

10. Calculation of the amount possible to be recovered:

Per day

Interest payments and receivables (NCFi = influencing)

Discount factor established at the original effective discount rate (IRR = 13,8165%)

Current value of expected cash flows

31.12.20A3

100,000

0.878607

87 861

31.12.20A4

100,000

0.771951

77 195

31.12.20A5

100,000

0.678241

67 824

31.12.20A6

100,000

0.595908

59 591

31.12.20A7

35,000

0.523569

18 325

Total

435,000

x

310 796

11. An entity, confirming the lasting loss of the value of this claim, shall determine a copy updating its amount in the following manner:

Balance sheet date

Adjusted Acquisition Price (SCN)

Reclaimable Amount

Update copy due to loss of value

31.12.20A2

337 676

310 796

26 880

Balance sheet value

310 796

12. An entity shall enter a copy of the update to the accounts and set the carrying amount of that claim in the amount of 310 796,-or at the adjusted cost of acquisition (337 676), less the write-off of that claim (26 880). A write-down of 26 880,-burdens the financial costs.

6.3. Assets valued at the purchase price (purchase price), in the cost of manufacture or in the overvalued value

6.3.1. An entity shall determine which of the fixed assets and assets identified in the manner set out in Chapter V as having an economic advantage, one at a time, should be in accordance with the Accounting Act and the rules adopted by the entity. (policy) accounting-valued at the balance sheet date at the purchase price (purchase price) or production cost not higher than the net sales price, at the purchase price or at the market price, whichever is the lower and those which should be measured at purchase prices or in the cost of manufacture or overestimated value less depreciation or amortization write-offs and write-downs caused by a loss of value.

They can be:

(a) the tangible assets of the rotary assets valued at the purchase price (purchase price) or the cost of production not higher than the net sales price (Art. 28 para. 1 point 6 of the Act),

(b) short-term investments valued at the market price (s) or the purchase price, whichever is the lower (Art. 28 para. 1 point 5 of the Act),

c) long-term shares in subordinated units (Art. 28 para. 1 points 3 and 4 of the Act) and long-term interests in other units (Art. 28 para. 1 (3), valued at the purchase price,

(d) investments included in the category of financial assets available for sale, for which the due date is not specified at the same time and the fair value cannot be determined and therefore valued at the purchase price (§ 16 point 3 of the Regulation, 12.12.2001),

(e) investments in immovable property and intangible assets included in the investment, valued at the purchase price or in the cost of production or revalued value (after an update of the valuation of fixed assets) less depreciation charges or umjudgement (Art. 28 para. 1 point 1a of the Act),

(f) other than those long-term investments, if they are valued at the purchase price (Art. 28 para. 1 point 3 of the Act),

(g) fixed assets under construction-at the price of their acquisition or at the cost of manufacture (Art. 28 para. 1 point 2 of the Act),

(h) fixed assets and intangible assets valued at the purchase price or in the cost of manufacture or in the value of the revalued (after updating the valuation of fixed assets) less depreciation or amortisation (Article 4 (1)). 28 para. 1 point 1 of the Act),

6.3.2. An entity shall measure individually these components of assets which are individually significant and different to the nature and function of the entity. The remaining assets of the entity can be valued individually or by group valuation, by setting the value of the individual, i.e., individually, i.e. separately for a group of assets determined in accordance with point (s). 5.5.

6.3.3. Impairment of tangible assets (stocks held for use in the business cycle or other items of assets to be disposed of over the next 12 months) at the cost of the acquisition (purchase) or the cost of manufacturing not higher than the net sales prices of the entity shall be determined in accordance with point (s). 6.3.8-6.3.17.

6.3.4. Impairment of short-term investments valued at the purchase price, or market value (s), whichever is the lower, shall be determined by the entity in accordance with the point. 6.3.18-6.3.22.

6.3.5. Loss of long-and short-term value of shares in other units and investments classified in the category of financial assets available for sale but not of a specific maturity, measured at the purchase price of the entity determine in accordance with the point. 6.3.23-6.3.26.

6.3.6. Impairment of fixed assets and intangible assets, fixed assets under construction, real estate investments and intangible assets as well as other investments valued at the purchase price or in the cost of production (or revalued) less depreciation or amortisation charges and write-downs due to loss of value shall be determined in the manner set out in Chapters VII and VIII, with the difference that loss of value assessment object only a single asset is considered, and not a group of assets that have a group economic benefit. The checks shall require that the value of the future net economic benefit of the individual impairment assessment object, which is determined by the commercial value (cf. Paragraph 2.10.) or the useful value (cf. Paragraph 2.11), whichever is higher, is not lower than the book value of that object at the balance sheet date, which justifies the updating of the update.

Normally, without any major difficulty, at the initial stage of the analysis, one can assess when an entity would gain more economic benefits from this asset: by selling it-it is determined by its commercial value or by using (keeping) it still to operate, the value of which is determined at the time of the operation.

However, if the commercial value of such a component is possible to determine, but the preliminary analysis will be likely to indicate a higher value than that value of the ingredient, then further actions consist solely of establishing the value of the utility at the time of the Having regard to the recommendations of paragraphs 8.2.8 to 8.3.29.

Where the value of the performance of the impairment assessment object is expected to be lower than its commercial value, or for various reasons, the estimates of useful value may not be well-estimated. documented, when determining the recoverable value of this object, its commercial value plays an essential role.

If at the date of the balance sheet, the entity shall be guided by Article 4. 4.1 (1) 1 and 2 of the Accounting Act and the pursuit of a fair and clear presentation of the financial and financial situation and financial result, will separate the fixed assets or/and intangible assets (or other assets, including their group), used before the balance sheet date for operating activities, but at the balance sheet date withdrawn from service and intended for disposal within the next 12 months, the entity shall apply the rules on the financial assets in question to the valuation of those assets as shown in points 6.3.8 to 6.3.17.

6.3.7. The loss of value of accrued accruals measured with prudence shall be determined by the entity in accordance with point (s). 6.3.27-6.3.30.

Tangible assets of rotary assets

6.3.8. The entity extracts the impairment assessment objects identified as having an economic benefit one at a time, the components of the in-kind rotary assets within the meaning of the Article. 3 para. 1 point 19 of the Accounting Act (i.e. materials purchased for captive use, manufactured or processed by the unit of finished products-products and services, which are fit for sale or in the course of manufacture, semi-finished products and goods purchased for resale in unprocessed state). The entity may also include those components withdrawn at the balance sheet date of use and are intended to be disposed of over the next 12 months fixed assets or/and intangible assets (cf. point 6.3.6 last paragraph).

6.3.9. The basic rationale justifying the recognition of the components of the rotary assets for the impairment assessment objects are the findings made in accordance with Chapter V, as well as the statement during the inventory of the nature, visual inspection, analysis of the records of the information about the rotation (time of arrears), etc., that they have lost in part or all of the value of the utility or trade (art. 7 ust. 1 of the Act). This can occur, for example, due to damage, deterioration, scraping, loss of aesthetic qualities, solicitation, changes in customer preferences, technical progress, season leakage, reduced market demand, or the use of divestiture from economic considerations. Another premise of impairment may be likely at the date of the balance sheet increase of the estimated costs necessary to bring the sale to effect, the fact that the purchase price (purchase) of certain goods or materials due to unfavourable transactions either the cost of producing some of the products, due to the start-up, or, on the contrary, quiescing the production process, etc. are higher than their net sales prices.

The valuation of the carrying amount of the items of assets in respect of which such conditions do not apply shall be made at the level resulting from the accounts at the balance sheet date, i.e. at the purchase price, purchase price, production cost, or, where applicable, the net value to date.

6.3.10. Where there is evidence to suggest that there has been a decrease in the useful value or the commercial value of the elements of the financial assets in kind, these assets are valued individually in the net sales prices (Art. 28 para. 5 of the Act). The starting point for the actual net sales price at the balance sheet date is the selling price of the asset. Depending on the type of asset for the sale price, the freight exchange quotations, the prices charged by the competitors, the prices according to the entity's own price list or the prices resulting from the contracts with the recipients should be accepted, if they are reliable. If, for the valued component of the tangible assets, it is not possible to establish the sales price in this way, it is otherwise necessary to determine its fair value at the balance sheet date.

6.3.11. A copy which updates the valuation of a given item of rotating assets shall take place in the case of the excess value of that component, resulting from the accounts at the date of the balance sheet valuation (purchase price, purchase price, cost of manufacturing or, where applicable, the cost of the asset) -net value) above its net sales price. This copy reduces the value of the asset at the balance sheet date and at the same time is deducted from the financial result (Art. 34 par. 5 of the Accounting Act).

6.3.12. If an entity maintains a stock of financial assets in excess of its economic needs considered normal, the excess shall be valued at net sales prices, if they are lower than the purchase, purchase or cost price. the manufacture of these stock components. On the other hand, the economically useful quantities are valued at purchase prices, purchase prices, purchase cost or cost. For the production of stock components, such as e.g. materials, semi-finished products are valued at the purchase price, purchase price or production cost only if other assets are expected to be valued (e.g. finished products, fixed assets under construction), to which such stock components will enter into the future in accordance with their economic purpose, will bring the expected economic benefits to the entity. If it is expected that the assets in which stocks are currently valued are expected to be part of the future, the future economic benefits are likely to be lower than originally expected, for example. will result in losses, the carrying amount of such stocks shall be fixed at the level of the net sales price, if they are lower than the purchase, purchase price or production costs of those stocks.

6.3.13. If the entity maintains a full volume of stocks (e.g. finished goods, goods), intended to be sold to an anonymous customer, in excess of the possibility of disposing of them during a period considered normal, the carrying amount of these excess assets should not exceed the price level Net sales, for example, during periodic sales. The entity should determine the rules to be applied in this respect, stipulating that the balance of such stocks held at the balance sheet date is divided into parts, taking into account the possibility and the sales policy foreseen in subsequent periods by the entity for the such stocks. This means that the balance sheet value of this stock will be determined as the sum of:

-the value of the spare part provided for the divestment during the period following the balance sheet date, whichever is the lower, at the level of the purchase, purchase or production cost, or price, net sales,

-the value of the spare part provided for disposal at a later date, which the entity determines at the level of the purchase price, purchase or production cost, or, where appropriate, reduced, for example, the cost of the unit. A certain percentage of the net sales price (whichever is lower).

If the sale of stock is also to be followed for further periods, the entity shall, when determining the value of the spare part for sale during those periods, take the above procedure with a view to the appropriateness of further lowering the sales price. net, depending on the type and purpose of the stocks, their sensitivity to changes in fashion, design, pace of technical progress, etc.

6.3.14. Stocks measured at net sales prices, if those prices are lower than the purchase, purchase or production cost, are to be analysed by type of stock, in principle, the position after the item. However, in the case provided for in the point. 5.5, in view of the valuation rules adopted and the labour-intensive measurement of the individual valuation, one indicator can be made of a cumulative reduction in the value of the stocks resulting from the accounts. Such aggregate reduction shall be possible in respect of a group of stocks, homogeneous due to the destination, material, origin, produced in the same geographical area and other features of the ingredients covered by that group. It is not appropriate to carry out the same cumulative reduction in the value of all finished products, the total of materials, etc. if they do not constitute a homogeneous stock group.

6.3.15. Stocks may include products in the course of manufacturing on individual orders (eg. houses built by developers, industrial facilities, ships, turbines, etc.). The entity should analyse the risks arising from the individual, unique and predominantly long-term nature of contracts (orders) and assess their impact on the carrying valuation of such assets. In particular, the risks may be caused by changes in the production range, insufficient discerning of the product's construction and technology, non-traditional estimates of manufacturing costs, etc., which makes the costs not covered by the sale price. If such stocks are linked to the unfinished construction services, their carrying valuation shall be carried out by the entity in accordance with the KSR 3-Non-completed construction services. Where an entity performs other than construction long-term service contracts, the corresponding application of the provisions of the CRS 3-Unfinished construction services shall also be recommended for the carrying-out of the assets related to them. For the remaining production in the course covered by the individual orders, the entity determines the difference between the following: the contract resulting from the contract (excluding VAT), adjusted in minus the impact on this price of such adverse events as the exchange rate change, if the contractual price takes care of the foreign currency, the penalties applicable to the payer for the product's failure to obtain the declared parameters or the expected delays in the discharge From the agreement, etc. and the value of the value of the valued asset resulting from the accounts plus the amount of the costs which the entity's assessment of the balance sheet is necessary to meet the contract.

6.3.16. Determined as described in the point. 6.3.14 and 6.3.15, the excess of the book value above the net sales price of the stocks justifies the write-off of the valuation against the loss of the value, minus the stock value resulting from the accounts at the balance sheet date, and at the same time as an incriminating financial In the case of reverse, the book value of the stock remains unchanged.

6.3.17. The way in which accounts are entered in the accounts at the balance sheet date of the adjustment of the stock value resulting from the accounts at the balance sheet date on the balance sheet-against their valuation at a lower net sales price-depends on the unit adopted in the unit of the solution Records. A copy of the update may be treated as a deviation from the stock prices of the stock group (materials, goods, products, etc.) or extracted, as an update of the valuation of the stock group caused by the loss of value. In each case, a copy of the resulting value of the stock components may be deducted from the accounts, and the subsequent partial or total distribution of the stocks entails the need to determine the part of the write-off which requires the use of the write-off of the stock. The

Example 6.6. -Valuation of tangible assets in the production company

1. JG's business unit producing sets of upholstered furniture for individual orders at 31.12.20A1 r. has tangible current assets of different purpose.

(2) At the balance sheet date, the JG states that it is reasonable to update the valuation of these assets, in view of the fact that they have an indication of the loss of their value.

3. The JG sets out which current financial assets should be valued individually, since they are assets which have an economic advantage individually and have a significant individual value and which may form a homogeneous group, also recognised as assets the economic benefits one at a time.

4. In JG stocks is located 510 m 2 organic leather with a purchase price (wholesale) 30 zł/m 2 . Due to the trends in the furniture production, the price of leather in the last year has decreased and is at the balance sheet date of 27 PLN/m 2 At the same time, the JG also notes that the market price for furniture upholstered with eco-friendly leather has also been reduced. This is in addition to the write-off of the stock and a reduction in the valuation of this skin to 27 PLN/m 2 A copy updating the value of the organic skin stock is 510 m 2 x (30-27) = 1530,-and the entity shall record it separately from deviations from the standard prices, chargeable to the other operating costs.

5. The JG also finds excessive in relation to the needs of the stock of carpentry glue. This glue was bought in the last period at a price of 20 zł/litre. The JG assesses that 20 litres are excessive in relation to its needs. The unit, fearing the expiry of the term of this adhesive for use, has already found a potential customer, who declares a desire to buy back an excess stock after 17 zl/litre, provided the adhesive is delivered to the recipient's warehouse. The projected transport costs of the unit are estimated at 100,-. The JG sets a new value for the excess glue stock of 240,-(i.e. 20 litres x 17 zł/litre-100). A write-down of 160,-(400-240) charges the remaining operating costs.

6. The JG also states that it has a stock of three identical sets of full-fledged products for woodwork and fabric. The cost of producing each of these sets is 5600,-. However, in the past period, the value of these sets was already updated, as the JG lowered the sales price due to the non-aqueous pattern of the fabric used to upholstery of these furniture. At the balance sheet date, the entity recalls the sales price again, resulting in a net sales price of 5400, for the complete set. The JG fixes the value of these three ensembles-600,-(i.e. 3 x (5600-5400)) and shall recognise it as a correction of the value of these products resulting from the accounts and as a burden on other operating costs.

7. In connection with the withdrawal from the use of machinery for the manufacture of bent furniture, from which this production unit resigns, the purpose of the disposal machine, at the balance sheet date-in accordance with the accepted accounting principles (policy)-JG indicates the value net of this machine 14 000,-in physical rotary activations. The machine is prepared for sale (dismantled) and agreed with the potential buyer the sales price is 11 700,-. According to the contract, JG will incub the costs of a special security for this machine during transport, which, according to the estimate, will be 200,-. JG valued the net sales price of the machine in the amount of 11,500,-(ie. 11 700-200) and a copy of the update of 3500,-which charges the remaining operating costs. In connection with the withdrawal of this machine it is also necessary to update the spare parts inventory value to this machine. The value of the acquisition of spare parts of these parts was 1000,-and was not updated so far, as there were no indications that they would become unusable. However, the buyer of the machinery did not express the willingness to acquire spare parts. That is why the JG must recognise spare parts as unsuitable economically, as it cannot use them for other machines and cannot sell to anyone else. JG intends to scrap the spare parts in the next period, and for the scrap it expects to receive 350,. The cost of transport to the scrap collection point will be 50,-. The JG considers that the value of the spare part is at the balance sheet date of 600,-(1000-350-50) and the difference (400) as the update write-off refers to the remaining operating costs.

Example 6.7. -Sale of stocks in the trading company

1. The commercial JG has at 31.12.20A1. stocks according to the specification below, for which revaluations have to be updated.

Inventory Component

Value in the purchase price

Existing write-downers

Net value resulting from the accounts (2-3)

Net sales price (quantity of stocks x unit price)

Special selling costs

Value in net sales price (5-6)

Increase updater write
(4-7)

Balance sheet value
(2-3-8)

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

Wooden garden pots

11 100

11 100

9,000

-

9,000

2 100

9,000

Plastic industrial compostable containers

12 200

1,000

11 200

9 300

700

8,600

2,600

8,600

Wicker wide garden mats

20 100

20 100

18,000

600

17,400

2 700

17,400

Gardening for garden furniture

5 600

700

4,900

2 300

2 300

2,600

2 300

Garden umbrellas

12,400

1 400

11,000

10,000

-

10,000

1,000

10,000

Ornamental mobile lighting equipment for gardens

30,000

30,000

23,000

23,000

7,000

23,000

Decorative figurines for gardens

7,000

7,000

2,000

-

2,000

5,000

2,000

Wooden garden cottages (in elements)

44,000

44,000

30,000

500

29500

14,500

29500

Plastic Garden Furniture

17,000

2,000

15,000

10,000

-

10,000

5,000

10,000

CDs

6,000

6,000

1,000

-

1,000

5,000

1,000

Calendars for the past year

1 200

1 200

0

-

0

1 200

0

Christmas ornaments

4 200

1,000

3 200

2 100

-

2 100

1 100

2 100

Total

170 800

6 100

164 700

X

x

X

49 800

114 900

2. Each of the listed stock groups, in spite of its diversity, is considered to be a group of homogeneous assets in the JG and, each of which is separate, is treated as an asset that has an economic benefit at a time.

3. Balance-sheet valuation of goods with which an increase in the update write-off:

31.12.20A1

Purchase price inventory value
(2)

Write-downers for valuation
(3 + 8)

Total
(9)

Stock value resulting from the accounts

170 800

6 100

164 700

Increase in update write-off

49 800

(49 800)

Balance sheet value of goods stocks

170 800

55 900

114 900

4. The JG exhibits these stocks in the commodity group at the carrying amount of 114 900,-and at the same time charges the remaining operating costs with an update write of 49 800,-. In the notes to the financial statements, an entity shall disclose the value of the write-off of the inventory of the goods in the amount of 55 900,-.

5. In the records of the detailed inventory of goods, the entity shall display data on the initial value of the inventory at the purchase price, the initial state, the increases and decreases, the update write-ups and their final state for the individual components of the groups stocks.

Short-term investments

6.3.18. The entity determines these, as explained in the explanation of Chapter V, for the economic benefits of a single short-term investment, which, according to the law and the accounting policies adopted by the entity, are valued at the same time. a balance sheet at the price (value) of the market or at the purchase price depending on which is lower (Article 3 of the EC 28 para. 1 point 3 of the Act). They can be such assets as, for example, not included in the works of art, antiques, coins with numismatic value, medallist and other collectors ' items, stocks of crushers, artistic jewellery, valuable useful items, old prints and other assets, meeting in the unit the role of the investment and the disposal of the divestments over the next 12 months.

6.3.19. Such assets shall be valued individually. For short-term investments, for which there is an active market, their market value is determined. Depending on the type of asset, the market value shall be the prices documented by the most recent sales transactions resulting from the publicly available price lists of specialised stores, auction houses, antiques and other units engaged in the turnover of such goods. Where a reliable market value cannot be established for a valued component of a short-term investment, its fair value at the balance sheet date shall be determined by other means, for example, by means of a valuer's services.

6.3.20. A copy which updates the valuation of such a short-term investment shall take place in the event of a balance sheet date of the excess value of that investment resulting from the accounts, over its market value. This copy reduces the value of the asset at the balance sheet date and at the same time is deducted from the financial result (an update of the value of the investment).

6.3.21. If the value of the short-term investment resulting from the accounts at the balance sheet date is not its value in the purchase price (since the write-downing of the purchase price was previously made) and the market value fixed for that date is higher than the value of the investment in the price of its acquisition, the entity shall determine the difference between the lower value resulting from the accounts and the higher value of the acquisition price, and then increases the value resulting from the accounts by bringing it to the market value not higher than the original purchase price, which in that case is the case the carrying amount of that investment. The amount of the increase in the carrying amount of the short-term investment entity relates to the financial result (update of investment value).

6.3.22. The way in which the accounts are included in the accounts at the balance sheet date of the adjustment of the value of the short-term investment resulting from the write-off of the write-off accounts depends on the standard of the accounting solution accepted in the unit. The write-down may be extracted as an update of the investment in a given investment due to a loss of value or a reduction in the direct value of the investments resulting from the accounts. It is recommended to use the first solution. In the case of a homogeneous investment group, a write-off of the group's accounts shall be reduced by the value of the group and the subsequent partial or total distribution of the investments covered by the group shall result in the need for a corresponding part of the write-off requirement. the exertion of the disgem.

Example 6.8. -Pricing of short-term investments in the lower of two values: at the purchase price or at the market price (value)

1. At the beginning of 20A1 The JG unit has acquired a valuable collection of coins at auction, paying 53 000 for it. The entity considered that the investment would be of a short-term nature and had an appropriate level of valuation for it.

2. At the end of the first half of the year, JG prepared financial statements and therefore also carried out a valuation of a collection of coins. Its balance sheet value was 48,000,-because it indicated the pricing of coins according to the current catalogue of prices quoted on the pick-up market. The JG considered it reasonable to write a write-down of the investment of 5000,-. This copy has borne the financial result.

3. At 31.12.20A1 The JG still classifies a set of coins to a group of short-term investments.

4. In connection with the valuation at the balance sheet date, the JG will again use the current price catalogue for this day and state that the current value of the harvest is 50 000,-.

5. It is still lower than the purchase price of the set by 3000,-. However, the current market value (50 000) is higher than the value resulting from the accounts for that day (48 000) by 2000,-.

6. The valuation of this investment takes place in the current market value and therefore the JG increases the value of the investment by 2000,-by establishing its carrying amount (50 000) at the current level at the balance sheet date of the market price (but still below the purchase price). At the same time, JG recognizes the financial result (updating investment value).

7. Na 30.06.20A2 r. The JG shall reprepare the financial statements.

8. On this market day the value of the set of coins is already 56 000,-. and is higher than the value resulting from the accounts (50 000) by 6000,-. It is also higher than the purchase price (3000).

Accordingly, as of 30.06.20A2, the JG leads the resulting value of the investment to its value in the acquisition price (53 000), which is achieved by increasing its value by 3000,-. As before, JG recognizes the financial result (an update of the value of the investment) and thus brings the carrying amount of the investment to the value in the acquisition price (53 000).

Financial assets with an undetermined maturity

6.3.23. An entity determines which of the investments classified in the category of financial assets available for sale do not have a specific maturity and are recognised by the entity, in accordance with Chapter V, for the assets that have an economic benefit individually. If, for such financial instruments, an entity cannot establish fair value, it shall measure it (in accordance with § 16 (3) and § 24 (1) (a) of the 2. Item 3 of the Regulation of 12.12.2001) at the purchase price less a write-down of the update caused by the loss of value.

6.3.24. For each financial asset referred to in point (s). 6.3.23 The entity shall determine separately whether the balance sheet date of the circumstances indicates the loss of the value of that asset within the meaning of Article 3 (1) of the Financial Regulation. 28 para. 7 and art. 35b of the Accounting Act). If the unfavourable circumstances are of a temporary nature and the entity does not establish a permanent impairment, the carrying amount of that asset shall be determined in the value of that investment resulting from the accounts at the balance sheet date.

6.3.25. In the event of a permanent loss of value of a given asset, the entity shall determine the excess value of the asset resulting from the accounts at the balance sheet date above the current value of future cash flows expected by the entity. the entity from this asset, discounted using the current market rate of return, appropriately chosen for the valued asset and applied to similar financial instruments (§ 24 paragraph. 2 point 3 of the Decree of 12.12.2001). A copy of the update shall reduce the value of that asset resulting from the accounts at the balance sheet date and shall debit the financial costs. If the excess in question does not occur, the carrying amount of the asset shall be the value of the asset resulting from the accounts at the balance sheet date.

6.3.26. An entity shows an investment in net worth in its balance sheet, but a write-off of the value of the investment shall be recognised in the accounts separately from the purchase price of that investment.

Example 6.9. -Determination of the write-off of a financial asset with an unspecified maturity

1. A unit of JG has shares in another unit in the portfolio of securities, which has acquired 100 000,-. These shares were classified on the date of acquisition for the assets available for sale. The entity did not make them available for sale because it has not yet decided whether or not it will resell it or rather it will acquire further shares in the unit to create a control package.

2. No revaluation was carried out until now due to the sustained loss of the value of these shares, as there were no indications that such a need was warranted. JG once even received its dividends due.

3. At the end of the current financial year (31.12.20A1), JG stated that in the last quarter of this financial year there were unexpectedly certain events in the economic environment of the issuer of shares, which caused it to survive for a long time. serious economic difficulties. The JG assesses that these difficulties will be of a lasting nature, as it may take up to 4 years. The stock is losing very quickly at market value. Nevertheless, the company does not want to sell the shares, as it is estimated that after a difficult 4-year period the company will start to prosper better, and then the sale may prove to be beneficial. The JG does not expect to be able to receive some dividend until then.

4. The JG carefully estimates that it will maintain stock in the portfolio still for five years and will sell it at the beginning of the year 20A7. According to the capital investment experts employed in the JG, the likely price of the share sale could be 130,000,-.

5. The JG sets out that at the balance sheet date of 31.12.20A1 the current value of the future cash flows expected from the sale of the shares is 61 893,-(in the industry in which the company operates, the current interest rate (rate of return) is 16%, and at this rate the discount factor for the fifth year is 0.4761).

6. A write-down from the calculation of the write-off of the investment is 38 107,-(i.e. 100 000 -61 893). At the balance sheet date, the JG shall include it in the records separately from the value of the shares in the purchase price and shall be charged to the financial costs.

7. The carrying amount of the investment shall be 61 893,-and disclosed in the notes to the financial statement of the update-38 107,-.

Accruals and accruals

6.3.27. The entity determines which of the long-and short-term accruals is recognised in accordance with Chapter V for assets that have an economic advantage individually and, further, which are the operational nature of future periods, and which are due to the difference between the higher amount of cash received and the lower amount of the funds actually received (Art. 39 (4) of the Accounting Act).

6.3.28. In assessing whether the balance sheet date has been lost on the balance sheet date, the value of the accruals entered in accordance with Article 4 of the 39 (4) of the Accounting Act, the entity shall check that the accounts are still covered in the accounts with which the accounts have been incurred. In the event of a statute of limitations or waivers of such a liability, the entity shall, in its entirety, write down the value of those accounts in financial costs. In the event of a partial write-off of such an undertaking, the entity shall write off that part of the accruals which corresponds to the part of the liabilities that are decommitted.

6.3.29. Operational expenditure of future periods of an entity shall be measured in accordance with art. 39 (3) of the Accounting Act as shown in the accounts at the balance sheet date not yet settled on the amount, with caution. Their demonstration in the financial statements is well founded if the entity has not changed its plans to reap the benefits of the (up-front) benefits of other entities. Otherwise, and in particular, when the contract accompanying the formation of such accounts cannot be resolved or does not provide for the reimbursement of paid sums in advance, the entity shall assess the periods during which the benefits of these are still to be repaid. benefits; this part of the expenditure which falls in excess of that time requires write-off and is a write-down of the value of these inputs. The adjustment of the settlement rate will impact on the results in the following periods, starting from the nearest one, through the burden of the financial result.

6.3.30. The entity shall further determine whether to show in the accounts the short and long term outlays for future periods (such as: paid in advance: rents, operating leases, insurance, subscriptions, overhaul, first equipment, etc.) in an amount not outstanding at the balance sheet date is reasonable, or whether the amount of that settlement for the next reporting period should be reduced due to the loss of future economic benefits accrued by the effort concerned. If it is concluded that the economic benefits will be smaller, the resulting value in the accounts shall be reduced between the periodic accounts. The amount of the update shall be determined on the basis of a professional judgement of the relationship between the amount of the accrual accounts and the planned activities of the unit. The write-downing of the accruals of the accruals increases the remaining operating costs respectively.

Example 6.10. -Write-down of short-term intermittal accounts

1. In the JG unit at 31.12.200A r. there are active accruals for the paid rent of the rents for renting the exhibition rooms, together with the necessary equipment. The accruals for the next year are equal to 1000,-and the accruals for the long term of the year are 2000,-.

2. The rent was paid in accordance with the contract two years ago, in five years in advance, at the height of 5000,-.

3. Two years ago, the economic unit provided for the use of the leased exhibition space in a very intense manner.

4. In the nearest 200B year, the use of the space will be only partial. It is not possible to subtract other units of this area, because the lease agreement does not allow it. In the following years, the full use of the space is foreseen.

5. It is estimated that, since the leased area will be used in the next year only at 20%, it is justified to reduce the value of this effort (resulting from the accounts) of a copy of the 200A year in the report ending 200A. updating 800,-(i.e. 80% x 1000) and the determination of the carrying amount of this settlement in the amount of 200,-. The amount of long-term rent settlement-2000,-remains unchanged.

VII. IDENTIFYING ASSETS THAT BENEFIT FROM GROUP ECONOMIC BENEFITS AND ESTABLISHING IMPAIRMENT ASSESSMENT FACILITIES

7.1. The entity shall apply to those assets -impairment assessment facilities which may be affected by the effects of the circumstances set out in Chapter IV and which are identified as current on the balance sheet date and which are assets have not been considered as having an economic advantage individually.

To this end, the entity first identifies the centres that have an economic benefit (cf. points. 7.4-7.8), then fixes common assets (point. 7.9, 7.10) and the value of the company or the negative value of the company falling into the centre of the economic benefit (paragraphs 7.11 to 7.14). In turn, the entity, where necessary, sets the adjusted assets for the group economic benefits and, finally, (point). 7.15 -7.17) specifies a group of values for the evaluation of impairment.

7.2. It is important for an entity to consider the role of each asset in subsequent periods, using a consistently once adopted asset-split or adjusted asset-to-benefit group. If the economic role of the asset in question does not change, it shall not be included in the harvest to which the asset was originally assigned. To that end, the records of the detailed intangible assets, tangible assets, investments and other assets which benefit from the group economic benefit shall be annotated as appropriate, indicating that they are not the attachment to a set of assets which have a group economic benefit.

7.3. If an entity carries out changes during the reporting period, e.g. a reorganisation which changes the composition of the asset in the economic benefit centre to which the common assets have been assigned and/or the goodwill, the timeliness and correctness of that attachment needs to be verified. If there is a change in the plans for the purpose or economic function of the asset in the following periods, that component shall, as appropriate, be assigned to another (appropriate) asset to the asset or to the changed role of that asset, or the adjusted assets that have a group benefit.

An economic benefit site

7.4. The economic benefit centre is, as indicated in the point of point. 2.6-The smallest identifiable asset of the economic benefit group (net cash flows), which is largely independent of the economic benefits of one or more of the other assets an economic group of economic benefits. The ability to group future economic benefits to a group is where the benefit of the use (maintenance or disposal) of a single asset is its use (maintenance or disposal) including other asset components.

An economic benefit can also be an asset assembly, producing products used (in whole or in part) for the entity's own needs, despite the fact that the work of such an asset team does not directly affect the measures. cash from individuals or persons in the environment of the entity. The recognition of such an asset as the centre of an economic benefit is such that an active market exists for the products produced by the group of assets.

7.5. The purpose of identifying the economic benefit site is to identify: (a) how to monitor the business of the entity (according to the responsibility of the management of the unit of responsibility for the activities of the entity, or by the means of the entity's own responsibility). products, industries, locations, regions, etc.), (b) the manner in which decisions are taken on the continuation or abandonment of the business and the continued use or disposal of assets.

7.6. An economic benefit centre may include: only assets used for operating activities, only investment components, or at the same time assets used for operating activities and investment components.

7.7. An entity identifies a facility that has an economic benefit and allocates assets to its asset, bearing in mind that the use of some investment element may, to some extent, depend on the use of some asset to the operational activities, or vice versa. At that time, both an asset of an investment nature and an asset related to its use in operating activities shall be covered by a single economic benefit measure. It shall not be assigned to a centre of assets previously recognised as assets which have an economic advantage individually, even if physically (e.g. by storage), these assets would be linked to a given economic benefit. For example, in an economic benefit site, an entity does not assign the financial assets in kind that it considered to be an asset that would have an economic advantage at a time (cf. Dec (v) and shall be valued in accordance with the principles set out in Chapter VI.

7.8. The entity may at the balance sheet date identify several economic benefits centres for which the revaluation procedure will have to be carried out. The establishment of these centres of economic benefit requires a professional judgement and a subjective assessment, underpinned by the entity's plans relating to the use of its assets and the conditions set out in Chapter IV.

Common assets

7.9. The entity determines, in turn, which of its assets are assets that are common to at least two economic benefits centres, since it is not possible to assign the asset to a specific site unambiguable. an economic advantage, since this component is used in different ways or on a different scale, with several centres that have an economic benefit. The special feature of the common assets is that, in their use, it is not possible to determine the economic benefits of these assets without having to link their functions at least with two economic benefits centres. and that, for such assets, economic benefits can be determined individually only if the entity decides to dispose of them. (In the event that such a decision is taken, such an asset shall be considered as an asset for the economic benefit of one at a time and shall be measured as described in Chapters V and VI).

7.10. The allocation of common assets to individual economic benefits centres is a fraction of a professional judgement, with reasonable and consistent application (e.g. (c) the rules for the distribution of the economic role of the common assets-and, as a result, their value resulting from the accounts at the balance sheet date-between the centres that make the economic benefits through which they are used. This may involve such assets as, for example, multi-functional: buildings, including their equipment, facilities, warehouses, research centres, which alone do not have the capacity to be independent of other economic benefits assets, and their The work supports the operation of several impairment assessment objects. The attachment of the value of the common assets to several economic benefits centres shall be carried out in accordance with pact 8.1.

Goodwill and negative goodwill

7.11. If, as a result of a combination of economic units, an entity acquires assets together with goodwill, it will assign it, according to the point. 8.1, on the basis of professional judgement-in relevant parts-to individual economic benefits centres, from which it expects to bring economic benefits through the combination of units. The value of a company alone does not have the ability to develop economic benefits; this ability is only obtained in combination with the resources it binds to. If the value of the company is negative, then the entity will assign it (as in the case of the attachment to the assets of the liabilities on which the entity depends on the economic benefits) to the benefit centres. the economic with which she was originally involved. The attachment of both positive and negative goodwill to the economic benefit centres shall take place irrespective of whether other assets (common) and liabilities of the acquirer are also assigned to those centres or not.

7.12. An important criterion for valuing the company's value to the economic benefits centres is the level at which the board of directors supervises (monitors) this category. The division of goodwill between the economic benefits centres would be artificial if the management board tracks changes in factors determining the value of the company at a higher level than one such centre. This is usually the case when the goodwill confers an economic advantage on several centres and its impact on the benefit of one of them cannot be determined without the impact on the benefit of the other. In such a case, the goodwill is determined by the higher level of the higher level economic benefit, i.e. covering several (two or more) economic benefits centres. If this proves to be reasonable, the value of the company will be reduced first by the value of this site (paragraph 8.3). Any centre providing an economic benefit or a team of such centres to which the value of the firm or negative value is assigned. The goodwill should therefore correspond to the lowest level at which the goodwill or negative value of the company is monitored for internal management needs; the site or their team should not be greater than one segment of the company's activities (industry or geographical).

7.13. If, during a given reporting period, an entity has either eliminated or eliminated part of the business of the economic benefit to which the goodwill has been assigned, the value of the firm in respect of the part still operating shall be determined in proportion to those resulting from the accounts, the share of the value of the part of the centre which is still operating in the value of the centre which has the economic benefit before the amendments. A part of the goodwill for a divested or liquidated business of an economic benefit shall charge the result of the divestment or liquidation of the assets covered by the entity in question.

7.14. Analogous-as shown in point. 7.11-7.13-The company's negative value is progressively.

Group Value Loss Assessment Objects

7.15. To assets which have a group economic advantage (cf. Point 2.8) shall be assigned commitments or reserves relating to these assets where the amount of economic benefit that is likely to be obtained in the future depends on those liabilities or reserves. For assets that have an economic benefit, the entity shall also assign revenue for future periods, recognised and settled in accordance with Article 4 (1) of the Financial Regulation. 41 par. 2. accounting law, where these relate to the economic benefits of the asset (fixed assets, intangible assets, fixed assets under construction) which have been assigned to a given centre, including the amount of the assets obtained free of charge, including those of the by donations.

7.16. The assets that have an economic benefit, grouped together with their commitments, reserves and future periods (if applicable), identified as being at risk of loss of value, shall be referred to as the group subject loss of value assessment. It is included in the revaluation procedure as the entity considers it likely that the verification of the value of any future net economic benefit may significantly affect the assessment of the carrying amount of the assets included in the asset these group value loss assessment objects.

7.17. The analyses and arrangements in question shall be carried out on each day of the procedure for updating the valuation of the assets resulting from the loss of the value.

Example 7.1. -Establishing the economic benefits in the retail chain of the retail chain-ŚSD

1. The company operates a network of retail stores of the ŚSD; it has a total of 25 stores.

2. 5 of them are located in different districts of the city of M, and 20 other stores each in another city.

3. Of the 25 shops, 3 shops were purchased together with other 4 stores five years ago from another network; the accounts included the value of the company.

4. About the pricing policy, marketing, advertising and human resources management in the network of shops (except for the recruitment of cashiers and sellers working in store A) is decided by the company's management board. All stores (including store A) are managed in the same way.

5. All purchases are centralised and are made through the purchasing department. For 20 shops located in other cities than M, purchases are in "exactly on time" mode. These stores do not have inventory facilities. With regard to 5 stores located in M, M is used in justified cases to store foreign goods warehouses and then to take goods to individual shops, using transport services of other companies.

6. The Management Board of the Company decided to build a new 26-th store in the next (other than M) city. A bank loan has been made for this purpose.

7. Collected before the decision to build a new store, the own funds of the company ŚSD were placed in the timely and partial contributions of the Z company. From these investments the company will benefit from the payment of the payment expenses. as the construction progress.

In determining which centres of economic benefit require in the case at issue, it is necessary to bear in mind, inter alia, the following:

(a) how the records and internal reporting are organised; is it possible to measure the performance of individual stores?

(b) the management of shops; whether the parameter on management is the revenue or the result obtained by individual shops, or the revenue or the result at the level of the region of the country, or of the city?

In this case, in spite of the fact that the shops are centrally managed, each of them-due to the location and the various customers-will make cash receipts (market), which are largely independent of the proceeds obtained by the other stores of this network. Supervision is carried out over the various shops and the fair is observed. As a result, each store can be considered an economic benefit which justifies the establishment of the operational assets of the company in the area of their use, that is to say, stores.

An example of the specifications for the economic benefits in the SSD and the assets used in them are as follows:

Part 1
Economic benefits centres (OWKE) covering assets used for operating activities

Value resulting from the accounts at the balance sheet date

Assets

Commitments

Value Loss Assessment Object-1

Group of 3 stores with a common company value

1

OWKE-1: retail store 1 located in the rented premises-city X

l Fixed assets-shelving

X

l Fixed assets-weights

X

l Fixed assets-refrigerators

X

l Fixed assets-cash

X

l Fixed assets-other equipment

X

l Stocks-assortment A

X

l Stocks-assortment B

X

l Cash

X

l Interperiod for rent paid for 5 years in advance for the rented store area for store 1

X

2

OWKE-2: Retail 2 located in its own building -city Y

l Fixed assets-shelving

X

l Fixed assets-weights

X

l Fixed assets-refrigerators

X

l Fixed assets-cash

X

l Fixed assets-building

X

l Fixed assets-other equipment

X

l Stocks-assortment B

X

l Stocks-C assortment

X

l Cash

X

3

OWKE-3: Retail 3-city of Z

l Fixed assets-mannequins

X

l Fixed assets-shelving

X

l Fixed assets-hangers

X

l Fixed assets-cash

X

l Fixed assets-store building

X

l Fixed assets-other equipment

X

l Stocks-assortment D

X

l Stocks-E assortment

X

l Cash

X

4

The value of a company associated with a group of stores acquired together 5-years ago.

X

Value Loss Assessment Object-2

Group of 5-storey stores in the city M with a common warehouse building

1

OWKE-4: retail store 4-city M

l Assets by their type

X

62

OWKE-5: Retail 5-city M

l Assets by their type

X

2

OWKE-6: Retail 6-city M

l Assets by their type

X

4

OWKE-7: retail store 7-city M

l Assets by their type

X

5

OWKE-8: Retail 8-city M

l Assets by their type

X

6

Warehouse building where the storage area is used by the unit for the supply of 5 stores in the city of M

X

Value Loss Assessment Object-3

Other Stores Group

1

OWKE-9: retail store 9-city L

l Assets by their type

X

....

17

OWKE-25: Retail shop 25-city K

l Assets by their type

X

Value Loss Assessment Object-4

A store under construction

1

OWKE-27 Store in construction

l Fixed assets under construction

X

l Stocks-equipment purchased to be mounted in the store

X

Part 2
Economic benefits centres covering investments

Value resulting from the accounts at the balance sheet date

Assets

Commitments

Value Loss Assessment Object-5
Investment property submited to other entities

1

OWKE-27 Investment property along with equipment

l Building with fixed equipment

X

l Electronic area monitoring system around the building

X

l System of own sewage treatment plant

X

l Land illumination system

X

2

Reserve for the decommissioning of its own sewage treatment plant

X

Value Loss Assessment Object-6
OWKE-27 Grunt held for investment purposes together with the fence

1

OWKE-27 Grunt with fencing

Grunt

X

l Permanent (forged) ground fence

X

Part 3
Assets common to all economic benefits centres

Value resulting from the accounts at the balance sheet date

Intangible assets-computer software

X

Fixed assets-administrative building

X

Fixed assets-building equipment

X

Fixed assets-computer equipment

X

Fixed assets-office equipment

X

Fixed assets-company car with financial leasing

X

Example 7.2. -Establishment of economic benefits in a multi-target production company - WPP

1. The WPP production company has several production facilities, including: Z1 and Z2.

2. The final product is produced by the Z2 plant; 80% of the production is sold outside the company (external customers) and 20%-used in the enterprise for its own purposes.

3. The Z2 plant consumes semi-finished products manufactured by the Z1 plant.

4. The products manufactured at the Z1 plant in 60% are transferred at internal transfer prices to Z2, and in 40% sold to external recipients.

In determining which economic benefit centres should be distinguished, it is necessary to bear in mind, inter alia, the following:

l Is there an active market for Z1 plant products and Z2 plant products?

l Does the Z1 and Z2 have an economic advantage to a large extent independently of each other?

If there is an active market for products Z1 and Z2, then-at least in theory-the Z1 plant could sell its products outside the company and would not make its production dependent on the demand reported by Z2. In turn, Z2 needed semi-fabricated goods could purchase on the active market and sell their products outside the company. Both Z1 and Z2 could therefore work independently of each other and therefore they will constitute separate economic benefits centres, despite the fact that some of their products are used within the company.

Another would be the case if there was no active market on the products of the Z1 plant, whereas Z2 products were in an active market. In such circumstances, since most of the Z1 products are used for internal purposes, the operation of Z1 depends on the demand reported by Z2. As a result, the smallest centre for economic benefits would constitute both bets.

Example 7.3. -The setting up of economic benefits in a multi-target company producing one product-WPPJP

1. The WPPJP company has three production plants Z1, Z2 Z3, each of which is located in another region of Poland.

2. Z1 produces semi-fabricated (components) which are processed in Z2 or Z3.

3. Z1 manufactures as many components as the Z2 and Z3 demand and passes them to the plants at internal transfer prices.

4. Z2 and Z3 produce independently of each other the same type of finished goods which they sell in the country and abroad.

5. It may happen that products manufactured in Z2 will be sold also by Z3 (or vice versa) depending on which bet they can be made to customers more quickly.

6. The degree of use of the assets Z2 and Z3 depends on the size of the possible sale by these plants.

In determining the economic benefit centres to be distinguished in this case, it is necessary to bear in mind, inter alia, the following:

1. Is there an active market for the products (components) of the Z1 plant, products manufactured by the Z2 and Z3 plants?

2. Will Z1, Z2 and Z3 have an economic advantage to a large extent independently of each other?

3. How is the records and internal reporting organized? Is it possible to measure the performance of individual plants?

4. How do I manage sales of Z2 and Z3 plants? Is the result of this parameter management obtained at the level of individual plants, or the result at the level of the individual locations (geographic segments of the market)?

If there is an active market for Z1 products, this means that Z1 could independently dispose of its products (components) independently of the other two plants. In order to be able to consider Z1 as a benefit centre, the system of records and internal reporting and the budgeting used in that undertaking should provide information on the production volume in Z1, on the costs involved and on the costs involved in the production of the products. the expected internal prices.

With regard to Z2 and Z3, it is important, in turn, that the results of these plants depend on different (depending on the particular circumstances) the ability of the plants to react quickly to the needs of their markets and to be allocated to them on that basis. the production volume to be performed. If the determination and observation of the result is combined for both plants, this means that the future economic benefits for both bets are not likely to be determined separately. Therefore, both Z2 and Z3 are considered to be a single centre for economic benefits. However, it would be different if each of these plants (Z2, Z3) were kept separate records, reporting and barters were established.

While there would be no active market for Z1 products, the future economic benefits of the Z1 plant would be entirely dependent on the contracts notified by Z2 and Z3. This would mean that Z1 is not able to make economic benefits independently. Also taking into account the explanation above how Z2 and Z3 are managed, and the fact that the possibility of production in these plants (in the absence of an active market for components) depends entirely on production in Z1, it would be appropriate to consider that all three plants should be considered as they cannot function independently. In the case of such a centre, the economic benefits would be Z1, Z2 and Z3.

Example 7.4. -Establishing economic benefits centres in the publishing company- CI

1. The CI spends 20 titles of periodicals, 8 of which have been redeemed, and 12 were created from scratch.

2. The price of the purchase of the redeemed journals is recognised as intangible, while the costs associated with the creation of new titles were written off against the financial result at the time of the payment of these costs.

3. There is a possibility to determine the proceeds from the sale and from the advertisement for each title separately.

4. Title Management (editorial policy, effort size) is oriented towards the segments of the market diversified in terms of customers purchasing individual magazines.

5. The prices for advertisements in a given journal depend, among other things, on whether or not other magazine titles are sold in a given customer circle.

6. The management has accepted the principle that in case of cessation of issuing the old title of the magazine it is immediately replaced with a new title intended for the same circle of customers.

Given that the revenue from the sale of magazines and advertising can be established for each magazine separately (although the amount of advertising revenues depends on the sales of other magazines in a particular segment, the possibility of advertising is independent of other titles) and that the decision to stop issuing the periodical collapses individually, in respect of a given title and does not entail the cessation of the issue of other titles, may be considered that the economic benefits are working out individual titles in the manner in which it is independent of each other. Therefore, each title of the journal is a separate centre for the exploitation of economic benefits.

VIII. DETERMINATION OF THE WRITE-OFF OF ASSETS WHICH HAVE A GROUP ECONOMIC BENEFIT

8.1. Determination of the group value of the impairment assessment of the value resulting from the accounts

8.1.1. At the date of the evaluation of the loss of value by the individual group evaluation facilities, the values identified as a result of the proceedings described in Chapter VII shall be assigned to them resulting from the accounts at that date as a whole or the relevant part of the assets included in the facility, depending on the arrangements made. This allows you to compare the value of an object separately for each group object of a loss of value that requires a determinant (as shown in the following terms). 8.2) the value of the future net economic benefits that can be expected from this entity and, where necessary, determine the amount of the write-off of the assets consisting of the group's impairment assessment entity.

8.1.2. The resulting value of the group's value loss assessment object, as specified in the point. 7.15-includes:

-the sum of the net worth of all the assets that make up the economic benefit centre,

-increasing this proportion of the net value of the common assets on that site,

-increasing this value of the net value of a company involving two or more centres per centre (or requiring a portion of the negative goodwill),

-the reduction of such a determined value of the undertaking and the reserve where the potential disposal of that centre or of its assets requires the acquisition by the acquirer of a particular liability or reserve.

8.1.3. The net value directly assigned to each of the site's assets includes their initial value, less remission, and any write-offs caused by a permanent loss of value. In determining the net worth of individual assets, the sources of their funding are not taken into account, e.g. grants received. Where an asset is part of an asset used under an agreement with a lease that meets at least one of the conditions laid down in the Article. 3 para. 4 of the Act, the value of this component does not affect the outstanding commitment to the sponsoring company on that day.

8.1.4. The share of the value of the common assets for several economic benefits centres assigned to the centre at issue (in accordance with Chapter VII), which increases its value, shall be determined on the basis of a professional judgement. This requires the application of the accounts on the balance sheet date of the assets common to several key centres on the balance sheet date, taking into account the economic role of the jointly operated assets. For example, such a key may be, if applicable, the area, the purchase of common assets for several sites, or the duration of use by different sites. It is not possible to establish a single key, as it is intended to reflect the function of common assets for several centres that have a group economic advantage.

The selected clearing key shall be used for the settlement of the accounts on the balance sheet date of the net assets common to several centres, including the initial value, redemption and eventual write-downs caused by the loss of the assets. values.

If there is no reasonable choice of a key to settle the values of the common assets under consideration for several centres, the entity shall again (in accordance with Chapter VII) identify the site but at a higher level of the aggregation of the assets. This means that an entity establishes a larger group of assets, which includes assets that are part of a site (s), which at the same time allows them to be assigned to them in a reasonable manner the value of the common assets for several centres.

8.1.5. The company's share of the goodwill or negative value of a company that binds to two or more sites (and assigned to the site in question in the manner discussed in Chapter VII) is also determined on the basis of professional judgment. Resulting from the accounts at the balance sheet date:

-the net value of the company-includes the initial value, redemption and eventual write-downs caused by the loss of value,

-negative goodwill-includes the initial value less the amounts cleared before the balance sheet date.

Recognition of the part of the goodwill for the economic benefit of the individual centres requires the consideration of all factors and the use of the results of the analyses carried out in the acquisition of the net assets, which the value of the company was associated with. It is only then that a key can be established to allow a reasonable settlement of the company's value on the individual sites. Such a key may, for example, be the fair value of the net assets acquired. It can also be a natural key-like for example. the number of employees who use the assets forming the centres, in particular if these centres develop economic benefits primarily through the work of the people employed. It is not possible to establish a single key, as it is intended to reflect the expected results of the work and the function of the centres the value of which is concerned.

Also, the economic benefit of a part of the negative value of the firm, which is binding on two or more centres, is determined in such a way as not to be further reduced by the accounts at the balance sheet date of the value. the site to which it refers.

8.1.6. The value determined as described in the value of the site shall be determined by the obligation or reserve assigned to the centre in the manner set out in Chapter VII.

8.1.7. Where the centre includes assets (fixed assets, intangible assets, fixed assets under construction) accepted free of charge, including those financed by a grant, the entity shall determine, in accordance with the provisions of Article 4, the entity in accordance with Article 4 (1) of the EC Regulation. 41 par. 2. The accounting law, the income of future periods, and shall be recognised in the accounts. They shall be written off in parallel to the depreciation of the assets received free of charge. If this proves to be reasonable, the revenues of the future periods in question shall be reduced by the amount of the write-off of the updating write-off caused by the loss of the value of the asset, financed by those revenues (paragraph 8.3.10). the income of future periods does not diminish the value of the impairment assessment object resulting from the accounts at the balance sheet date. However, if such revenues were due to, for example, from a grant that requires a refund, the amount of such income should be reduced by the value of the group evaluation object of the impairment to which it relates.

Example 8.1. -Assignment of liabilities (or reserves) to-resulting from the accounts at the balance sheet date-a centre for economic benefits accruing to the economy

1. The JG unit for mineral extraction has established at the end of 200A that the economic benefit centre includes two closely related discoveries which remain under the joint management.

2. The sum of the net worth of the individual assets consisting of this economic benefit shall be at the balance sheet date of 5000,-and includes the net value of heavy mining equipment, pumping devices, conveyors, and rights to the operation of the deposit.

3. According to environmental regulations, after the completion of the operation of the deposit (which will occur in 10 years), the unit must rehabilitate the site of the discoveries. The cost of reclamation will include the investments related to the reconstruction of the original landscape on the site of the discoveries, which requires the levelling of the site and its development.

4. At the time of acquisition of the rights to exploit the deposit (i.e. three years ago) the value of the acquisition of these rights was increased by the anticipated remediation efforts (they are covered by the amount of 5000), while creating a special reserve for this purpose. This reserve is at the balance sheet date of 1500,-.

5. If the divestiture of the explorations has been carried out in the next few years (of which JG does not rule out), the buyer will take over also the obligation to rehabilitate the site of the explorers. Therefore, the possible sale price of such landings will take into account not only the value of the assets of the mine, but also the associated obligations in the reserve for land reclamation.

6. Having regard to the associated reserve, the value of the two explorations (and thus the entire centre of the economic benefit) fixed at the balance sheet date prior to the revaluation procedure of the assets This site is 3500,-(5000-1500).

Example 8.2. -Assignment of goodwill to-resulting from the accounts at the balance sheet date-a centre for economic benefits accruing

1. A JG unit occupying the provision of printing services at the end of 200A has two printers. Both printers function independently of each other, specializing-one in label printing, the other-in the printing of packaging. Each of them has a graphic design studio and a sales department. They are the centres of economic benefits that work on their own, but within the tasks assigned by the board of the unit.

2. In the current reporting period (200A r.) JG took over another printing company, specialising in book printing, involving two printing works and an administrative building with equipment. As a result of the acquisition, the company value was

One of these printers (after some technical changes) has decided to use the label to produce labels that sell well, but the production requires a wider hardware base.

The second printer will be used in accordance with its original purpose, to print books. The administrative building is about to be renovated for lease as an asset of investment assets.

3. The value of the company, created as a result of this acquisition, will be supervised at the horizontal printing press of the book, because in relation to this area of operation of the company will result in intangible features of the acquired value of the company.

The value of the company will not be relevant for the printing of the labels and the management of the building under the lease, since the primary importance for the acquisition of this company had for the unit primarily: the location of the printing works printing works books, its technical condition, qualified technical staff and the already concluded (and potential) contracts.

In this condition at 31.12.200A r. The entire value of the company will increase-the value of the book printing works on this day-the value of the company's printing works.

4. If the second of the acquired printers were not intended for printing labels, and would still be dealing with the printing of books, then it would be reasonable to consider the separation of goodwill into two parts, in proportion, for example, to the value acquired in the the result of the acquisition of the assets of both printing works or the annual production capacity of both printing works

This is what you can do if the economic life of each of the printers is close. Otherwise, the assignment of the goodwill to both printers should be considered in proportion to the value of the assets of each of them, weighted by the expected economic life of the two printers (in the same way as the attribution example). the value of the common assets of several of the economic benefit measures) or to the expected economic exploitation of the production potential of the two printing works for the further period.

Example 8.3. -The assignment of the value of the common assets-resulting from the accounts at the balance sheet date-to several centres providing economic benefits

1. At 31.12.200A r. Three economic benefits centres-OWKE 1-3, have been identified in the JG unit.

2. The value of these centres from the accounts for this day is: OWKE 1-1000,-, OWKE 2-1500,-and OWKE 3-2000 respectively,-and does not include the goodwill.

3. The assets used jointly by these centres are the assets of the unit's headquarters with the value of 2000,-comprising the building of the unit headquarters (1500) and the central research and design office (500).

4. It was considered that the reasonable basis of the assignment resulting from the accounts of the value of the headquarters building to the centres of the economic benefit may be (resulting from the accounts on that day) the value of these centres.

5. Unfortunately, it is not possible to determine the reasonable rules of the analogous value of the value of the assets constituting the central office of design and research.

6. It is estimated that OWKE 1 will still be in the JG for 10 years, whereas for OWKE 1 and 2 it is expected to have a 20-year economic period for their use. For the building of the unit the unit is assumed to be a 10-year period of use and the use of linear depreciation at this time.

In view of the different economic periods for the use of the economic benefits and of the common assets for these centres, it is appropriate to assign the value of the common assets to the values of the individual centres in proportion to the value of the centres. the centres (resulting from the accounts for that day) of the weighted duration of their use.

The value will be fixed as follows:

31.12.200A r.

OWKE 1

OWKE 1

OWKE 1

Total

Value deriving from the accounts

1,000

1 500

2,000

4,500

Estimated period of economic use

10 years

20 years

20 years

X

Weightings resulting from the period of economic use

1

2

2

X

Weighted Value

1,000

3,000

4,000

8,000

Percentage of Weighted Values of Individual Sites

1 000 ÷ 8 000
= 12,5%

3 000 ÷ 8 000
= 37,5%

4 000 ÷ 8 000
= 50%

= 100%

Assignment of Unit Centers of Building Values

12,5% x 1 500 = 187

37,5% x 1 500 = 563

50% x 1 500 = 750

1 500

Total value resulting from the accounts

1 187

2,063

2 750

6,000

Since it is not possible to determine reasonable rules for the attachment of assets to the central assets of the research and research office, its assets will be included in the value of the entity as a whole, which is the centre for the development of economic benefits on the highest level and from this level the central design office will be analysed for possible impairment of the assets.

8.2. Determine the future net economic benefits of a group impairment assessment object.

8.2.1. In order to check whether the value of the assets covered by the group's interest impairment assessment has been lost, the findings require the value of the future net economic benefits of the entity that determine its value: trade value and value utility. The entity shall take into account the higher of the two values by establishing whether there is a need to write off the valuation of the assets resulting from the loss of value and in what amounts. The value that you select determines the recoverable value of the group value loss assessment object.

8.2.2. Thus, in principle, determining the recoverable value of a given group object of impairment assessment, both its commercial value and its commercial value must be determined.

However, if, in the opinion of the company's management, at least one of these values is higher than that resulting from the accounts of the value of the group object of the assessment of the impairment, it is not necessary to establish that of both values. It is sufficient to establish a value which is expected to be higher than the value resulting from the accounts.

If it is assessed that the useful value of a group impairment assessment object is not materially different from the commercial value that can be determined, the commercial value of the facility may be used as the recoverable amount. This may, in particular, take place in the event of an imdistant intention to dispose of the site concerned. If the trade value of a given group rating object is not possible, the entity shall determine as recoverable value the usable value of the object. For example, this can be apply to the case where there is no reliable basis for the estimate of the amount which could be obtained from the sale of the site concerned at market conditions or where it is not the intention of the entity to dispose of it.

The relationship between the commercial value and the utility value of the impairment assessment of the group's economic benefits at the preliminary stage of the analysis is not always easy to determine. It will often be difficult to decide which of these values will most likely be higher and ultimately determine the recoverable amount. In such a case it is necessary to apply a more in-depth procedure of establishing both the commercial value (point. 8.2.3-8.2.7) as well as utility values (points. 8.2.8-8.2.29). Differences between these values should be expected, for example by reason of the market (external) and internal evaluation and valuation of the effect of the combined use of individual assets of such a group loss assessment object. values.

Commercial value

8.2.3. The determination of a commercial value requires the analysis of all indications to objectively determine the ability of a given impairment assessment object to benefit the economic entity in the event that it is the subject of a divestitement.

8.2.4. The trade value of the impairment assessment object specifies an alternative to the value:

* the net sales price (within the meaning of art. 28 para. 5 of the Accounting Act),

* fair value (within the meaning of art. 28 para. 6 Accounting Act) less the expected to be incurred in connection with this sale of cash expenses and other inputs representing the total costs of disposing of this facility.

8.2.5. When determining the commercial value of an impairment assessment entity, an entity shall be guided by information from actual sales contracts concluded in the past at market conditions between the parties concerned and well informed parties. transactions where such a contract reflects a potentially possible transaction for which an object could be subject, under similar market conditions.

However, such an agreement may form the basis for determining the commercial value of an object only if the contract: (a) refers to identical or similar assets, (b) was concluded in a period of time with respect to the date of fixing of that value, (c) does not correspond to the an unusual situation.

In the absence of such information, the commercial value may be used as the basis for the following: (a) the purchase price of an object similar to the one at which the price is normally the most appropriate market price, or, in the absence of such information, is to be accepted (b) the price of a similar transaction last executed, provided that, during the period from the date of this transaction to the date of the assessment of the loss of value, there have been no significant changes in the economic circumstances, potentially affecting changes in the price of the assets similar to the object in question, or-where no such possibilities are available-(c) value resulting from reliable transaction information concerning assets similar to the entity in question, carried out at market conditions, between the parties concerned and the well-informed parties.

8.2.6. The fair value of the impairment assessment object shall be reduced:

(a) any liabilities and reserves assigned to a given impairment assessment object, if the contract does not contain information on the same or similar obligations and reserves in relation to the divestment (as a reference basis). Object

(b) costs associated with the disposal of the facility, even if the contract constituting the basis for the measurement of fair value does not contain information on such costs, and they could be linked directly to the object in question if it were the subject of disposal; they may include such costs; For example: costs necessary in the event of divestment: legal services, notarial services, tax charges, tax burdens related to such a transaction, removal of the component from the place of existing use, bringing the site into a state of to sell it.

8.2.7. The commercial value of the impairment assessment object in question shall not be taken into account:

(a) the termination of the employment relationship of persons whose employment contracts would be eligible for dissolution in the event of the disposal of the facility in question,

(b) the reorganisation of activities and other costs or benefits potentially lost due to the reduction of the activity as a result of the divestment necessary after the sale.

Useful Value

8.2.8. Determination of useful value requires the analysis of all indications to objectively determine the ability of a given impairment assessment object to benefit the economic entity in the event that it is still in use. (held) in the unit according to the economic tasks that it plans for.

8.2.9. The useful value of the site in question shall be determined taking into account:

(a) the estimated (forecast) net cash flows that the entity may expect to obtain through its use (cf. Paragraph 8.2.15) and disposals after the end of the use of the facility (cf. paragraph 8.22),

(b) expectations of changes in quotas and decay during these flows,

(c) the value of money over time, by applying the current risk-free market rate (discount rate),

(d) the impact on these data of the uncertainty associated with the characteristics of the facility concerned,

(e) other conditions which the entity considers to be relevant for the valuation of future cash flows that it may expect from the given impairment assessment object.

In the absence of an option to determine the discount rate on the basis of the current market rate, the entity may, on the basis of the discount rate, accept:

-the weighted average cost of capital of a given unit established by the CAPM 2 ,

-marginal lending rate,

-other market rates of borrowing/loans.

The discount rate (point (c) should in any event reflect those in pact (b) and (d) the risk associated with the object of the assessment of impairment if the entity does not take into account the possible effects of that risk on the basis of a forecast correction net cash flows.

The factors set out in pact (b) and (d) shall be taken into account by adjusting the net cash flow forecast or the calculation of the discount rate so that the factors referred to in point (s) can also be taken into account. (c) and (e).

8.2.10. The key element for determining the useful value is a reliable forecast of net cash flows from the facility in question; it is, by nature, subject to a significant subjectivism of predictions on future achievements. Information from external sources, relevant for the assessment of the entity's future business activities, plays a particular role in forecasting. The aim is to involve the most competent persons in this field.

8.2.11. The condition for considering the net cash flow forecast is reliable: (a) the use of data from the outside of the entity as to the overall economic conditions relating to it, and which will occur in the subsequent use of the service concerned. the impairment assessment object, (b) be based on the current, accepted by the management of the business plan entity, (c) to take into account any estimated revenue and expenditure of the cash which, as expected, the entity may to be expected from the restructuring to which the entity has committed itself or already incurred expenses associated with the improvement/improvement of the results achieved through the use of the facility in question.

The reliability of the forecast favours the comparison of the net cash flow estimates carried out in the past years for the object concerned with the flows actually achieved. This allows you to identify significant key discrepancies and improve further estimates, however, taking into account the conditions that may occur in the future.

8.2.12. The forecast shall be made up to a maximum of five years, unless the adoption of a longer period will increase the reliability of the estimates. Where the forecast covers a period of more than five years, the value of the net cash flow over the first five years shall be the extrapolation of the forecast based on the business plan, but with the fixed or declining growth rates for the following years.

A growing rate of growth may also be applied, in principle not higher than the historical long-term average growth rate of product prices for the business sectors and for the countries in which the entity is established. The adoption of a higher rate than this rate of growth requires a rational justification.

8.2.13. If an entity does not prepare business plans for periods longer than five years, the net cash flow estimate is based on the most recent credible five-year plan.

The business plans underlying the cash flow forecast of the impairment assessment site concerned can be considered reliable if they are based on prudent and documented predictive reasons and resulting from the outcome of the a comprehensive analysis of the future operating conditions of the entity.

8.2.14. The estimated (projected) net cash flows associated with the impairment assessment object in question include:

(a) a forecast of the proceeds of cash from the continued use (or maintenance) of the facility concerned,

(b) a forecast of cash expenditure (including expenditure related to the preparation of the relevant object to use, with its service), which can be directly (in whole) or indirectly (in a reasonably established part) assigned to the object in question, and which must be incurred to obtain the proceeds of cash from further the use (or maintenance) of this facility,

(c) the amount of net cash to be obtained from the disposal of the facility in question after the end of its period of use (or maintenance).

The estimated net cash flows do not include income tax expenditure and financial activities (within the meaning of the CRS 1-Cash flow accounts).

If the value of the impairment assessment object resulting from the accounting books has not yet taken into account all the inputs required for the object to be suitable for further use or sale (for example, the value of the property may be used for the purpose of the sale of the site). in the case of a building under construction or unfinished development work), while estimating the future economic benefits of a value loss assessment object, future inputs of this kind are treated as forecasted cash expenditure, no matter whether or not the cash flow is associated with them. An entity may use its already existing non-cash assets to complete a given impairment assessment object. The consumption of these assets does not generate cash expenses and will result in an increase in the value of the facility.

8.2.15. The estimated net cash flows include only those values that involve the future work of the impairment assessment object in its current physical state and with its current capabilities. It is not possible to base estimates on the assumptions about further activity of the entity, which has not found confirmation in the implementation of the business plans. For this reason, the projected net cash flow does not include projected cash flows potentially related to a given impairment assessment object, but resulting from yet unconcretised in the event plans, which may, in future, alter the physical state of the facility, its economic functions or its conditions of use, and thereby affect its subsequent operational potential.

For example, respect should not include future receipts and expenses, the occurrence of which is expected in relation to: (a) future restructuring, if an entity has not yet made a commitment to the relevant actions. restructuring, (b) improvement or improvement of the products (results) obtained from the object in question, if such actions are merely the intention.

8.2.16. If an entity has accepted restructuring arrangements, which means that it will be carried out in accordance with a special restructuring programme which may change the utility value of the impairment assessment object in question, then in the net cash flow estimates for this facility shall include the cost savings and other benefits that the restructuring is intended to bring for the facility concerned. In order to avoid the double counting of the same elements, estimating future net cash flows, the expected restructuring expenditures that have been taken into account in the relevant restructuring reserves are not included in the calculation of the future cash flows. the commitments associated with it.

8.2.17. When the improvement/improvement of the results obtained from the impairment assessment object in question is planned and not accompanied by the creation of a special special-purpose reserve, the receipts and expenditure relating to this activity shall be taken into account in the estimates net cash flows of the object in question. However, the estimated net flows of the facility do not include the economic benefits expected from such activities until the improvements have been made.

8.2.18. The estimated net cash flows of the assessment object in question include the expenses to be incurred in order to be able to fulfil the economic functions assigned to it in its present state and to bear the estimated receipts. cash. If an object requires the replacement of parts or components with a shorter usage period, and they are necessary for its use to be made possible, it is assumed that the exchange of even entire components of the assets (e.g. certain machines which are part of the production process), and not only their components of spare parts, are part of the current handling of the facility, whether such an exchange is such as to be repaired or improved. This does not include depreciation expense for the object.

8.2.19. For a impairment assessment object that uses an entity's internal transfer pricing (accounting) entity, to establish future net economic benefits for that entity and other loss assessment objects associated with it value-takes into account market prices established in accordance with the best knowledge, not internal transfer prices.

8.2.20. The respect of net cash flows associated with the subject of assessment of impairment may also be influenced by the value of the company's value in whole or in part. In this case, the expected cash flows for the facility concerned should take into account the impact on their value of the goodwill from the company's value, i.e. from the features associated with this impairment assessment object and not identified as separate asset components.

8.2.21. In estimating the net cash flows of the impairment assessment facilities, no account shall be taken of the offsets in time of receivables or expenditure on liabilities related to the operation of the facility. This simplifies respect and is justified by the fact that, over a long period of time, the value of the payment of outstanding claims and the value of the expenditure for the regulation of liabilities will be similar in the unit. An exception to this rule may relate to the investment object of the impairment of the value associated with their operation, where the regulation of obligations involves a way of working out the net economic benefits of the site.

8.2.22. For the net monetary amount, which will be obtained from the disposal of the impairment assessment object after the end of its use (maintenance), the amount that the entity will expect to receive from the disposal of the entity from the disposal of the entity, as expected, is assumed to be the market transaction between the parties concerned and the well-informed parties, less the estimated expenditure which will lead to the transaction.

By establishing this amount, the entity shall adopt a dominant price per day of the price of similar objects whose useful life (or maintenance) period has already been completed and which has been operated (or maintained) under similar conditions to those in which it will be used (or held) a given impairment assessment object. These prices shall be set by the entity alternatively: (a) taking into account the expected changes in the market price of the impairment assessment object not caused by inflation or (b) taking into account both market price developments and the inflationary price increase. In the case of (a) the selected discount rate should not take into account the effect of inflation and, in the case of (b), the discount rate should be chosen so that such an effect is taken into account.

8.2.23. When estimating cash flows during subsequent periods of use (or maintenance) of the impairment assessment object, the expected probability of receipt or disbursement of the estimated amounts may be taken into account.

8.2.24. Estimated as described in point. 8.2.14-8.2.23, future net cash flows shall be expressed in their current (discounted) value. For this purpose, the net cash flow established for the following years shall be converted using the pre-tax discount rate, reflecting: (a) the current market assessment of the value of money over time, and (b) the risks involved in the cash flow in question. The object is not included in the net cash flow estimates.

8.2.25. The respect of future net cash flows and the discount rate should be based on consistent assumptions about price increases caused by general inflation. If the effects of the inflationary price increase are taken into account in the net cash flow estimates and the forecast takes place in nominal terms, the discount rate shall be expressed at the nominal amount, calculated on the basis of the date of the fixed price, The balance sheet of the real discount rate and the projected inflation rate.

If, on the other hand, the forecast is in real terms, the real discount rate fixed at the date of the estimate shall be applied.

8.2.26. The real discount rate corresponds to the return expected by investors when deciding on an investment that is cash-flow in the amount and terms similar to the net cash flows estimated for the facility under consideration. The discount rate is the default rate of return and its choice may be based on: (a) the weighted average cost of the capital of the company that uses a single asset or a group of assets with a usable potential similar to that of the consideration the impairment assessment object or (b) the discount rate (rate of return) from the current market transactions with the object of the object similar to the impairment assessment object.

8.2.27. Typically, it is desirable to use a single discount rate for net cash flows forecasted for different periods of activity of the impairment assessment object. However, if at these times the risk impact (included in the chosen interest rate) is expected with a different force, then the net cash flow estimate shall be used to determine the current (discounted) value of the estimated net cash flow. individual discount rate periods. This may also take place when the inflation rate (s) is projected to be different over the forecast period.

8.2.28. If the cash flows or parts thereof are in foreign currency, they shall be estimated in that currency and then discounted at a discount rate appropriate to the currency. The value of the estimate thus determined in foreign currency shall be converted into national currency using the average rate established for that currency by the National Bank of Poland on the balance sheet date.

8.2.29. The next step of the asset revaluation procedure as a result of impairment losses shall be chosen as the value of the commercial value or the useful value of the impairment assessment object, whichever is higher. The selected value is the recoverable value loss assessment object that is reduced by the commitment and reserves that are assigned to this object (and also included in its value).

Example 8.4. -Estimation of net cash flows from the impairment assessment object, taking into account the probability of their implementation

1. In the economic unit of the JG, at 31.12.200A r. The net cash flow associated with the economic benefit measure in question has been estimated for a further period of 5 years. Guided by the precautionary principle in estimates, the JG set the minimum amount of expected cash receipts and all expected cash expenses.

(2) According to the JG, it is appropriate to use a fixed rate of 18% for the entire period of the discount rate.

3. The estimates of net cash flows shall be presented below:

Year

200B

200C

200D

200E

200F

The nominal value of the expected net cash flows on which the entity recognises that it is highly likely to be implemented in a given year

+100 000

+120,000

+144 000

+172 800

+207 360

Discount factor at the interest rate, e.g. 18%

0.8475

0.7182

0.6086

0.5158

0.4371

Current value of the estimated net cash flow

84 750

86 184

87 638

89 130

90 637

4. The value of one of the expected (and significant in estimates) of the proceeds of the X title (not yet included in the above statement) cannot be altogether unequivocally to a specific year, as the JG predicts that the amount of this impact can be realized with varying probabilities over different periods, as it is estimated below:

Year

200B

200C

200D

200E

200F

The nominal value of the expected impact from the X title

1000

1000

1000

Likelihood of its implementation in subsequent years

10%

60%

30%

The inclusion in estimates and this impact requires discounting of its value in subsequent periods and taking into account the likelihood of implementation, as follows:

Year

200B

200C

200D

200E

200F

The nominal value of the expected impact from the X title

1000

1000

1000

Discount factor at the interest rate, e.g. 18%

0.8475

0.7182

0.6086

Current value of the estimated net cash flow

848

718

608

Likelihood of its implementation in subsequent years

10%

60%

30%

Expected Current X Impact Value

85

430

182

5. In relation to the influence of another title (Y), associated with an economic benefit measure, JG is able to determine the term of this impact (year 200C), but at the balance sheet date it cannot determine the exact estimate of the amount, as it closes It may be in the range of 2000,-up to 11 000,-where each of the values of this interval is just as likely. In this situation, it was considered reasonable to averaged the expected impact and to determine its nominal value for 200C. at the rate of 6500,-(i.e. [ 2000 + 11 000] ÷ 2). The current value of this impact is 4668,-(ie. 6500 x 0,7182).

(6) In addition to the expenditure already taken into account in the earlier estimates, the JG expects a significant amount of expenditure to be associated with the operation of the centre of the economic benefit concerned, which the JG envisage that it may occur in the year 200F in the amount in the range of 1000,-up to 10 000,-the most probable is the amount of 4000,-. It was considered that, in view of the difficulty of reliably determining the likelihood of occurrence of any of the amounts in this compartment, it is appropriate to averaging the three above values and to determine the amount of expenditure in the year 200F in the amount of 5000,-(i.e. [ 1000 + 4000 + 10 000] ÷ 3). The current value of this expense is-2186,-(i.e. 5000 x 0,4371).

7. The compilation of all expected cash flows associated with the operation of the site of the economic benefit at 31.12.200A r. is shown as follows:

Current value:

Year

200B

200C

200D

200E

200F

Estimated net cash flows of different titles (other than X, Y, Z)

84 750

86 184

87 638

89 130

90 637

Impact from Title X

85

430

182

Impact from Title Y

4 668

Z-title Expense

(2186)

Total Current Value by Years

84 835

91 282

87 820

89 130

88 451

Total Usable

441 518

Example 8.5. -Comparison of the current value of the estimated net cash flows when estimating flows in real or nominal values, assuming a fixed rate of inflation in the forecast period

1. In the economic unit of the JG, at 31.12.200A r. the net cash flow of the measure at issue was estimated to have an economic benefit over the next five years, taking into account the 2% inflation price increase.

2. Estimates of these flows are as follows:

Year

200B

200C

200D

200E

200F

Nominal value

102 000

104 040

106 121

108 243

110 408

Real value

100,000

100,000

100,000

100,000

100,000

(3) As a result of earlier findings, the real discount rate before tax was fixed at 31.012.200A r. at the level of 20%. The nominal rate (at 2% of the inflation rate is r = (20% + 2% + 20% x 2%) = 22,40%.

4. Estimation of the current value of expected net cash flows:

Variant 1

Year

200B

200C

200D

200E

200F

Nominal value

102 000

104 040

106 121

108 243

110 408

Discounting factor at nominal discount rate
22.40%
= 1 + (1 + 0.224) n

0.8170

0.6675

0.5453

0.4455

0.3640

83 334

69 447

57 868

48 222

40 189

Total

299 060

Variant 2

Real value

100,000

100,000

100,000

100,000

100,000

Discount factor at a nominal discount rate of 20%
= 1 ÷ (1 + 0.20) n

0.8333

0.6944

0.5787

0.4823

0.4019

83 330

69 440

57 870

48 230

40 190

Total Usable

299 060

Example 8.6. -Comparison of the current value of estimated net cash flows when estimating flows in real or nominal values, assuming variable inflation rate in the forecast period

1. In the economic unit of the JG, at 31.12.200A r. the net cash flow of the measure at issue was estimated to have an economic benefit over the next five years, taking into account the 2% inflationary increase in prices.

2. Estimates of these flows are as follows:

Year

200B

200C

200D

200E

200F

Real value

150,000

170,000

100,000

120,000

180,000

Projected inflation rate

2%

3%

4%

2%

1%

Nominal value

153 000

178 602

109 262

133 737

202 612

(3) As a result of earlier findings, the real discount rate before tax was fixed at 31.012.200A r. at the level of 20%. The discount nominal rate for subsequent years is as follows:

Year 200B

r. = (20% + 2% + 20% x 2%) = 22,40%

200C

r. = (20% + 3% + 20% x 3%) = 23,60%

200D

r. = (20% + 4% + 20% x 4%) = 24,80%

200E

r. = (20% + 2% + 20% x 2%) = 22,40%

200F

r. = (20% + 1% + 20% x 1%) = 21.20%

(4) The discounting factors at various nominal discount rates for subsequent years are set as follows:

Year 200B

1 ÷ (1 + 0.2240)

0.8170

200C

1 ÷ [ (1 + 0,2240) (1 + 0,2360)]

0.6610

200D

1 ÷ [ (1 + 0,2240) (1 + 0,2360) (1 + 0,2480)]

0.5296

200E

1 ÷ [ (1 + 0,2240) (1 + 0,2360) (1 + 0,2480) (1 + 0,2240)]

0.4327

200F

1 ÷ [ (1 + 0,2240) (1 + 0,2360) (1 + 0,2480) (1 + 0,2240) (1 + 0,2120)]

0.3570

5. The estimate of the current value of expected net cash flows:

Variant 1

Year

200B

200C

200D

200E

200F

Nominal value

153 000

178 602

109 262

133 737

202 612

Discounting factor at different nominal discount rates

0.8170

0.6610

0.5296

0.4327

0.3570

125 001

118 055

57 876

57 867

72 332

Total

431 131

Variant 2

Real value

150,000

170,000

100,000

120,000

180,000

Discount factor at the real discount rate
20% = 1 + (1 + 0.20) n

0.8333

0.6944

0.5787

0.4823

0.4019

124 995

118 048

57 870

57 876

72 342

Total Usable

431 131

8.3. Determination and settlement of the write-down of the appraisal

8.3.1. In order to determine whether a impairment assessment object has been lost, the recoverable amount of the object shall be compared with its value resulting from the accounts at the balance sheet date. A value loss occurs when the value of the recoverable object is less than its value resulting from the accounting books, which justifies updating this value. If the value of the object at the balance sheet date is lower than the recoverable amount, there is no need to update the value of the object.

8.3.2. If the impairment of a given impairment assessment object is not found, then the value of the assets covered by that object shall not be updated, including when the trading value of the specified asset of the object is lower than its value resulting from the accounts.

8.3.3. The difference between the higher, resulting from the accounts, the value of the impairment assessment object and the lower recoveryvalue is determined by the amount of the write-down of the asset valuation of the asset at the balance sheet date of the asset, which leads to the the new balance sheet value of this object to its recoverable value.

8.3.4. A write-off of the value of the assets covered by the group's impairment assessment is settled between the individual assets included in the asset, in proportion to their net present value, resulting from the accounts for the day balance sheet. When you reconcile a write-off, any commitments, reserves, and future income that are assigned to that object are ignored.

8.3.5. If a company value is assigned to a given object:

(a) a copy of the update decreases the value of the company in the first place; this copy charges the remaining operating costs, respectively, and corrects the future annual amount of depreciation (ie. the amount of the depreciation) of the remaining value of the company; in the consolidated financial statements, a copy of the company updating the value of the company is included in the separate line "A copy of the goodwill of the company",

(b) if a write-off exceeds the value of the goodwill, the excess amount is to be settled between the individual assets of the impairment assessment object in proportion to their previous value (net) resulting from the accounts at the balance sheet date; these write-downs shall be reduced by the existing value of the individual assets.

8.3.6. Update copy (reduced by a write-down of the company according to pact 8.3.5.a) initially settled between the individual assets included in the group evaluation object, correcting their value resulting from the account books, requires regardless of how the recoverable value is determined, the verification, since the adjusted value of the asset subject to the group impairment assessment object cannot be lower than its commercial value. This requires the establishment of a commercial value-if it was possible to determine the value of the asset-the individual assets included in the asset. (The sales value can also be zero.) If the verification shows that part or all of the updating copy of the asset, the value of the asset is lower than the commercial value, the part or all of the write-off shall be adjusted by the the value of the remaining assets (not lower than their commercial value). If it were found that a write-off set for the settlement of assets included in a group assessment object of impairment in the original value is higher than the write-off of the settlement, taking into account the above rule, that excess shall not be shall be accounted for. As a result, a write-down of assets which form part of a group object of impairment will ultimately be lower than the original write-down.

8.3.7. The way in which the write-off of a write-off in the accounts depends on whether or not:

(a) a negative value of the goodwill is linked to the group's data loss object,

(b) the assets included in the group of assets included in the group object of the impairment assessment involve the capital from the revaluation of its valuation or the outstanding income of future periods included in the accounts (art. 41 par. 2 laws) and-generally

(c) a valued asset is used for operating activities or is an investment of an entity.

8.3.8. If a negative goodwill is associated with the object of the assessment of the impairment, the write-off of the printed copy shall be debited in the first order by the negative value of the company in the liabilities. If the amount of the update write-down is higher than the negative value of the company assigned to the given impairment assessment object, the entity proceeds as follows in the following sequence.

8.3.9. If an asset the valuation of which is subject to an update is shown in the accounts at the balance sheet date in the revalued value and the revaluation effects are transferred to the capital from the revaluation, then a write-off of the asset in the first the order of the revaluation of the valuation of the valued asset and then, in excess of the value of that portion of the revaluation capital, shall debit the financial result of the period according to the nature of the measure. a valued asset (Art. 32 par. 4-5, art. 35 par. 3-4 of the Act).

8.3.10. Where an asset the valuation of which is subject to an update does not involve the balance sheet date of the revaluation, the revenues of the future periods referred to in Article 4 shall be associated with the valuation of the assets. 41 par. 2 Accounting Act, this copy of the update charge (lowers) the value of these revenues. The amount of the write-off on the income of future periods shall be determined by taking into account the degree of financing of the asset valued in those revenues. Any excess of the write-off over an amount which reduces the income of future periods shall be charged to the financial result of the period, according to the nature of the asset being valued.

8.3.11. In so far as the asset feature of the balance sheet date does not involve either revaluation capital or deferred income, the update shall debit the financial result of the period, according to the nature of the asset being valued.

8.3.12. If the asset the value of which is being updated is amortising, then, on the basis of the update write-off in the accounts, a new depreciation shall be established for subsequent periods. The new depreciation rate (taking into account the possible end value of the asset) shall be determined taking as the starting point the new carrying amount of that asset, the verified remaining life of the asset and the method of its depreciation.

The point is that, after the revaluation of the valuation, the depreciation will be followed in a manner that ensures the systematic writhing of the newly established balance sheet value for the remaining expected life of that asset (Art. 31 par. 3 of the Act). According to art. 32 par. 3. The accounting law, the correctness of the periods used and the depreciation rates should be reviewed periodically, resulting in a corresponding adjustment in the following years of the depreciation of the depreciation, irrespective of whether or not the entity carries out a test for the loss of value of the assets or not.

8.3.13. Bearing in mind that the value of the company in accordance with art. 44 par. 10 Accounting laws are depreciated, impairment assessment facilities with which the goodwill binds are subject to revaluation procedures at the balance sheet date, which is stated (in the analysis carried out in accordance with the recommendations) in Chapter IV), the existence of indications that the goodwill is likely to have lost its ability to benefit economic benefits.

On the other hand, the impairment assessment sites with which a negative goodwill is associated shall be subject to the revaluation procedure where there are indications of the conditions set out in Chapter IV of the Standard.

As soon as depreciation or write-downers have reduced the goodwill to zero-starting from the next day-the entity assesses the impairment of the assets by following the recommendations of the Standard for the impairment assessment facilities, the company's value does not apply.

Similarly, when write-dowed write-downers, which update the value of the impairment assessment object with which the negative value of the company was bound, have been at least equal to the negative value of the company.

Example 8.7. -The determination of the value resulting from the accounts at the balance sheet date and the write-off of the asset in the case of assets which have a group economic benefit

1. JG's business unit at 31.12.200A r. assessed that the assets below will not be expected to benefit from the expected economic benefits in the future.

Assets exposed to impairment-Balance at 31.12.200A

Value resulting from the accounts
Accountancy
balance sheet valuation

1.

Intangible Values-Diagnostic Equipment Software

2,000

2.

Fixed assets-building

50,000

3.

Fixed assets-diagnostic machine

10,000

4.

Fixed assets-car air lift (covered by financial leasing)

15,000

5.

Fixed assets under construction-new diagnostic position

1,000

6.

Receivables from customers

2,000

7.

Other claims

1,000

8.

Spare parts inventory

5,000

9.

Short-term accruals (leasehold fee for diagnostic equipment)

400

10.

Short-term accruals (charges for use of the property next to the diagnostic station of the posession where parking is organised for customers)

600

Total

87,000

2. The JG has established the following impairment assessment facilities by making an appropriate attachment to OWKE-X of the company's value (7000), common assets (2000):

Value Loss Assessment Objects

Value resulting from the accounts
Accountancy
balance sheet valuation

Value Loss Assessment Object for Group Economic Benefits

assets

Commitments

1

OWKE-X-the point of payment service in the field of computer diagnostics of passenger cars

Intangible Values-Diagnostic Equipment Software

2,000

Fixed assets-building

50,000

Fixed assets-diagnostic machine

10,000

Fixed assets-car air lift (covered by financial leasing)

15,000

Short-term accruals (leasehold fee for diagnostic equipment)

400

Short-term accruals (charges for use of the property next to the diagnostic station of the posession where parking is organised for customers)

600

Goodwill assigned to OWKE-X

7,000

Common assets for several centres assigned to OWKE-X

2,000

Total

87,000

One-at-one cost-of-value assessment object

2

Receivables from customers

2,000

3

Other claims

1,000

4

Spare parts inventory

5,000

7

Built diagnostic position

-Fixed assets under construction-new diagnostic position

1,000

-Revenues of future periods related to the received in-kind grant for the construction of a new diagnostic station

10,000

Total

96,000

10,000

3. In view of the fact that a part of the assets may be valued individually, the JD has checked the carrying amount of those assets at the end of the 200A year, in accordance with the Accounting Act and in accordance with the rules adopted in the unit of rules. (policy) accounting. The analysis has established:

-claims on customers should be higher by 1000,-since the negotiations with customer A, for which a number of diagnostic services have been carried out in the past, indicate a high probability of recovery in the amount of a higher amount of 1000,-in relation to the value that was established in the previous period as being possible to obtain (and in relation to the previous balance sheet valuation of the receivables updated in minus); the existing write-down of these receivables in plus by 1000 was adjusted;-

-an inventory of spare parts for cars has shown that a certain number of them (with the resulting account books at the date of 2000) will no longer be useful, as the unit will no longer diagnose the car model, to the Whereas these parts could be used; whereas the value of these parts was valued at net sales prices at 1500,-whereas a write-off was made to update the value of parts-500,-;

Value Loss Assessment Subjects for Economic Benefits One at a Time

Value
resulting
from the books
accounting
at the measurement date
balance sheet

Copy
updating
on 31.12.200A

Value
balance sheet
on 31.12.200A

Impairment assessment objects deemed to have an economic benefit individually

2

Receivables from customers

2,000

+ 1 000

3,000

3

Other claims

1,000

x

2,000

4

Spare parts inventory

5,000

-500

4,500

6

Built diagnostic position

-Fixed assets under construction-new diagnostic position

1,000

1,000

-Revenues of future periods related to the received in-kind grant for the construction of a new diagnostic station

Total (1 to 6)

96,000

-500

95 500

4. JG at 31.12.200A r. established as a recoverable amount for the economic benefit of OWKE-X its useful value in the amount of 61 000,-.In view of the fact that the resulting value of the assets of the site is 87 000,-, a write-down of the value of the assets the assets of this facility are 26,000,-; it should be allocated to the individual assets of this site.

5. The JG sets the structure of the value of the assets covered by the impairment assessment and clearing the write-down of the write-off as follows:

OWKE-X-the point of payment service in the field of computer diagnostics of passenger cars

Value
resulting
from the books
accounting
at the measurement date
balance sheet

Share
in values
object
(%)
(3 × 100) ÷ 80,000)

Update Copy
(4 × 19 000)

Value
balance sheet
OWKE-X
(3-5)

(1)

(2)

(3)

(4)

(5)

(6)

Goodwill assigned to OWKE-X

7,000

7,000

0

Intangible Values-Diagnostic Equipment Software

2,000

2.50

475

1 525

Fixed assets-building

50,000

62,50

11,875

38 125

Fixed assets-diagnostic machine

10,000

12.50

2 375

7,625

Fixed assets-car air lift (covered by financial leasing)

15,000

18.75

3 562

11,438

Short-term accruals (leasehold fee for diagnostic equipment)

400

0.50

95

305

Short-term accruals (charges for use of the property next to the diagnostic station of the posession where parking is organised for customers)

600

0.75

143

457

Common assets for several centres assigned to OWKE-X

2,000

2.50

475

1 525

Total

87,000

100.00

26,000

61,000

6. An entity shall conclude that the amount of the update write-off determined by the individual assets of that entity for which a commercial value can be determined does not result in a reduction in their carrying amount below the amount of the assets determined by the entity. commercial value. In view of this, the carrying amount of the assets is determined by the amounts shown in column 6.

Example 8.8. -The order of the clearing of the write-off between individual assets that have a group economic benefit, when the value of the company does NOT occur

1. At 31.12.200A r. JG's economic unit has isolated three economic benefits centres-OWKE 1-3.

2. The value of these centres from the accounts at the balance sheet date is: OWKE 1-3000,-, OWKE 2-4500,-and for OWKE 3-6000,-; it does not include the value of the company.

3. The activities commonly used by the centres are: the warehouse building of the unit (4500) and the service point (2500).

(4) It is considered that the value of those centres resulting from the accounts may be the reasonable basis for assigning the economic benefits of the value of the warehouse building resulting from the accounts.

(5) It has not been possible to lay down reasonable rules for the analogous attachment of the value of the assets constituting the service point resulting from the accounts.

6. Taking into account the expected economic periods for the use of the centres, the value of the jointly operated storage facility was assigned to the economic benefits centres; at the balance sheet date, the value of the assets in question the assets are as follows:

Value deriving from the accounts
at the balance sheet date:

31.12.200A r.

Total

Service Point

2,500

2,500

OWKE 1

OWKE 2

OWKE 3

Miscellaneous assets

3,000

4,500

6,000

13,500

Storerooms

561

1 689

2 250

4,500

Total

3 561

6 189

8 250

X

Total

20 500

7. By making the appropriate estimates and calculations, the JG established recoverable values (at the value of the utility value) for each of the centres separately and for the economic benefits centres including the service point. The service point provides additional economic benefits, so the recoverable amount of the economic benefit for the total service point is higher than the sum of the recoverable values of the individual sites. These values are as follows:

Recoverable value at 31.12.200A:

OWKE 1

OWKE 2

OWKE 3

Economic benefits centres
total service point

5 970

4 920

8 130

20 100

8. The determination of the write-off of the assets under consideration shall take place in several stages.

(9) In the first step, the entity compares the value of the economic benefits (OWKE 1, OWKE 2, OWKE 3 without a service point) to the accountancy books on a case-by-case basis with their recoverable value and establishes the legitimacy of the undertaking. a write-off of a total of 1,389,-. The arrangements are set out in the following table:

31.12.200A r.

OWKE 1

OWKE 2

OWKE 3

Total

Recoverable value

5 970

4 920

8 130

19 020

Value deriving from the accounts

3 561

6 189

8 250

18,000

Writeback of Sites Value

does not occur

1 269

120

x

Total writeback of sites value

1 389

x

(10) In the second step, an entity shall determine, for each of the centres with an economic advantage, the amounts of the updating write-off which may be related to the various assets constituting the centres for which a write-off of the update has been fixed. And to the value of the inventory building that is assigned to each site. The relevant settlement is shown in the following table:

31.12.200A r.

OWKE 1

OWKE 2

OWKE 3

Miscellaneous assets

3,000

4,500

6,000

Storerooms

561

1 689

2 250

Together the value resulting from the accounts

3 561

6 189

8 250

Share of the value of the various assets in the value resulting from the accounts

x

4 500/6 189 = 72,71%

6 000/8 250 = 72.73%

Share of the value of the various assets in the value resulting from the accounts

x

1 689/6 189 = 27,29%

2 250/8 250 = 27,27%

Update write-off for various assets

x

72,71% x 1 269 = 923

72.73% x 120 = 87

Update write-down per warehouse building

x

27.29% x 1 269 = 346

27.27% x 120 = 33

Site Updater

1 269

120

Site value updated after the second stage

3 561

4 920

8 130

Total Centres updated after the second stage

16 111

11. In the third stage, the entity considers the recoverable amounts of the centres that have an economic benefit, including the service point. This is due to the fact that it is not possible to determine reasonable rules for the attachment of the value of the assets constituting the service point and therefore its assets will be included in the value of the object of the impairment of the value determined by the value of the centres the economic benefits including that point. In establishing a write-off of the value of the assets of the service point, the ability of the service point to bring an economic benefit to an entity shall be assessed only from that point of view.

12. To this end, the entity compares the recoverable value of the economic benefits centres, including the service point (20 100), with the value of those centres resulting from the accounts, and established after the second stage (19 111, ie. 16 611 + 2 500). This calculation is shown as follows:

The value of the site recoverable amount, including the service point

20 100

Total Centres updated after the second stage

16 611

The value of the service point resulting from the accounts

2,500

Total Centres Total with Service Point updated after 2nd stage

19 111

Excess recoverable value over the updated value

+ 989

13. The recoverable amount (20 100) is higher than the value of the economic benefits centres, including the service point (as determined after the second stage)-19,111, which means that the service point does not lose out on value, thus a copy of the update service point assets will not occur. In the end, the carrying amount of the assets valued shall be as follows:

31.12.200A r.

Assets

Resulting value
from the accounts

Update Copy
pre-assigned

Balance sheet value

Service Point

2,500

0

2,500

Storerooms

4,500

379

4 121

OWKE 1-Various assets

3,000

3,000

OWKE 2-Various assets

4,500

923

3 577

OWKE 3-Various assets

6,000

87

5 913

Total

20 500

1 389

19 111

(14) In relation to the various assets in OWKE 2 and OWKE 3, a further settlement of the update on the individual assets covered by the various centres was carried out, and the newly established carrying amount of the asset was not lower than its commercial value. For the depreciable assets, new depreciation rates are set, which will be applied in the subsequent economic periods of the use of these assets.

Example 8.9. -The order of the clearing of the write-off between individual assets that have a group economic benefit, when the value of the company OCCURS

1. At 31.12.200A r. JG's economic unit has isolated three economic benefits centres-OWKE 1-3. These centres include the value of the company, which is 1000,-and is considered for these centres in total, as it is not possible to find reasonable grounds for its attachment to the various economic advantages.

2. The value of these centres from the accounts at the balance sheet date is: OWKE 1-3000,-, OWKE 2-4500,-and for OWKE 3-6000,-; it does not include the value of the company.

3. The joint activities used by the centres are: the warehouse building of the unit (4500) and the service point (2500), where only the products of the distinguished economic benefit centres are offered.

(4) It is considered that a reasonable basis for the assignment resulting from the accounts of the value of the warehouse building to the centres of economic benefit may be the value of those centres resulting from the accounts.

(5) It has not been possible to determine the reasonable rules of analogy arising from the accounts of the value of the assets constituting the service point.

6. Taking into account the expected economic periods of the functioning of the centres, the value of the jointly used warehouse building was assigned to the economic benefits centres, and at the balance sheet date, the value of the assets the assets under consideration shall be as follows:

Value deriving from the accounts
at the balance sheet date:

31.12.200A r.

Total

Goodwill

1,000

1,000

Service Point

2,500

2,500

OWKE 1

OWKE 2

OWKE 3

Miscellaneous assets

3,000

4,500

6,000

13,500

Storerooms

561

1 689

2 250

4,500

Total

3 561

6 189

8 250

x

Total

21 500

7. By making the appropriate estimates and calculations, the JG established recoverable values (at the value of the utility value) for each of the centres separately and for the economic benefits centres including the service point. The service point provides additional economic benefits, so the recoverable amount of the economic benefit for the total service point is higher than the sum of the recoverable values of the individual sites. These values are as follows:

Recoverable value at 31.12.200A:

OWKE 1

OWKE 2

OWKE 3

Economic benefits centres
total service point

4 800

3 120

7 130

15 100

8. The determination of the write-off of the assets under consideration shall take place in several stages.

9. In the first step, the JG sets the height of the update write-down for the entire impairment assessment object, that is, for the economic benefits centres, including the service point. To this end, the JG compares the recoverable amount of the entire facility (15 100) to the resulting value of all the assets included in the facility, including the value of the company (21 500). The update copy set for all assets together shall be 6400,-. According to the principles of the JG, this copy will be reduced in the first place by the value of the company (1000).

Resulting values
from the accounts
at the balance sheet date:

31.12.200A r.

Total

Copy of update established after first stage

Goodwill

1,000

1,000

1,000

Service Point

2,500

2,500

5,400

OWKE 1

OWKE 2

OWKE 3

Miscellaneous assets

3,000

4,500

6,000

13,500

Storerooms

561

1 689

2 250

4,500

Total

3 561

6 189

8 250

x

Total

21 500

6,400

10. In the second stage The JG accounts for the remainder of the update write (5400) between the economic benefits and the service point, as shown in the table:

31.12.200A r.

Values resulting from the accounts at the balance sheet date:

OWKE 1

OWKE 2

OWKE 3

Point
service

Total

Miscellaneous assets and warehouse building

3 561

6 189

8 250

2,500

20 500

Share of individual asset groups in total value

17.37%

30.19%

40.24%

12.20%

100%

Pre-settled amount of the write-off of the individual assets

938

1 868

2 173

659

5,400

(11) The JG then fixes the maximum amount of write-off write-off per centre and service point, taking into account that the newly established value of these assets may not be less than the recoverable amount; or Zero. The JG shall determine the amount of the write-off of the individual assets to be included in the amount. These calculations are as follows:

31.12.200A r.

OWKE 1

OWKE 2

OWKE 3

Point
service

Total

Recoverable value

4 800

3 120

7 130

50 1

15 100

Value deriving from the accounts

3 561

6 189

8 250

2,500

20 500

Pre-settled amount of update write-off

938

1 868

2 173

659

5,400

Maximum write-down of sites value

0 2

3 069 3

1 120 4

2 450

6 639

Amount of the write-down for further settlement

4 280 5

The resulting amount of total assets to which the further settlement of the write-off is concerned

x

6 189

x

2,500

8,689

Participation of individual asset groups in the value of assets to which further settlement of the write-off is concerned

x

71.23%

x

28.77%

100%

Final settlement of the remaining amount of the write-off on individual assets

x

3 049 6

x

1 231 7

4 280

1 Total recoverable amount-recoverable amount of economic benefits (15 100-15 050).

2 The recoverable amount shall be higher than the value resulting from the accounts.

3 The recoverable amount is lower than the value resulting from the accounts (3120-6189).

4 The recoverable amount is lower than the value resulting from the accounting books by only 1120 (i.e. 7130-8250).

5 Pre-settled amount of the update write less write-off for OWKE 3 (i.e. 5400-1120).

6 This amount will be settled on the assets of OWKE 2 in full, as it does not exceed the maximum amount of the update write (ie. 3069).

7 The amount must still be verified in the course of the third stage; if the third stage does not change its amount, then 1231,-the minor value of the service point assets, as it does not exceed the maximum amount of the update write-off (i.e. 2450).

12. In the third stage, the entity shall account for the final amounts of the write-off of OWKE 2 updates between the individual assets of that centre, in proportion to their value resulting from the accounts. The settlement is shown in the table:

31.12.200A r.

OWKE 2

OWKE 3

Miscellaneous assets

4,500

6,000

Storerooms

1 689

2 250

Together the value resulting from the accounts

6 189

8 250

Share of the value of the various assets in the value resulting from the accounts

72.71%

72.73%

Share of the value of the warehouse building in the value resulting from the accounts

27.29%

27.27%

Update write-off for various assets (which is similarly settled on individual assets)

72,71% × 3 049 = 2 217

72,73% × 1120 = 815

Update write-down per warehouse building

27,29% × 3049 = 832

27,27% × 1120 = 305

13. As a result of the settlement, the entity shall determine the following assets balance sheet values:

OWKE 1
-Various assets

OWKE 2
-Various assets

OWKE 3
-Various assets

Building
inventory

Total

Value deriving from the accounts

3,000

4,500

6,000

4,500

18,000

Copy to update the value of the economic benefit centres

0

2 217

815

1 137 1

4 169

Balance sheet value

3,000

2 283

5 185

3 363

13,831

1 This is the sum of the update write-down for the inventory building (ie. 832 + 305).

14. In the fourth stage JG verifies the update copy (1231) previously established for the service point. To this end, the recoverable amount of the economic benefits, including the service point (15 100), was compared with the value resulting from the accounts, and, after the third clearance stage of the update, the value added was increased by resulting from the accounts value of service point 16 331,-(i.e. 13 831 + 2500).

15. Since the recoverable amount (15 100) is lower than the value of the economic benefit centres, including the service point, a write-down at that level of the impairment assessment object will be 1231,-. (A copy of that JG would account for the individual assets of this point using the principles discussed, while at the same time making the newly established carrying amount of the asset in question not lower than its trading value.)

(16) Finally, as a result of the above calculations, the following balance sheet values of the JG's assets in question were established:

31.12.200A r.

Assets

Resulting value
from the accounts

Update Copy

Balance sheet value

Goodwill

1,000

1,000

0

Service Point

2,500

1 231

1 269

Storerooms

4,500

1 137

3 363

OWKE 1-Various assets

3,000

0

3,000

OWKE 2-Various assets

4,500

2 217

2 283

OWKE 3-Various assets

6,000

815

5 185

Total

21 500

6,400

15 100

17. JG carries out further clearance of the write-off on the individual asset items covered by OWKE 2 and OWKE 3, considering that the newly established carrying amount of the asset is not lower than its trading value, which in this case does not took place. For the assets to be depreciated, a new depreciation rate has been established to take account of the expected further economic periods of use

Example 8.10. -The accounting of the write-off on individual assets that have a group economic benefit, taking into account that the trading value of certain individual assets is higher than the value established by the clearing of the update write carrying amount

1. At 31.12.200A r. The business unit of the JG has been set up with three economic benefits centres-OWKE 1-3.

2. After a preliminary determination of the write-off of the assets of the various economic benefits centres, the data to allow for a further settlement of the write-off on the individual assets included in those centres shall be as follows:

31.12.200A r.

Assets

Resulting value
from the accounts

Update Copy

Balance sheet value

Service Point

2,500

0

2,500

Storerooms

4,500

379

4 121

OWKE 1-Various assets

3,000

0

3,000

OWKE 2-Various assets

4,500

923

3 577

-Permanent measure-1

2,000

-Permanent measure-2

900

-Permanent measure-3

800

-Intangible value

600

-Long-term interstate settlement

200

OWKE 3-Various assets

6,000

87

5 913

Total

20 500

1389

19 711

3. When a copy of the update on OWKE 2 (923) is distributed, the structure of the asset value of that centre has been established and the amount of the write-off between the assets of the site has been cleared in proportion to that structure. The relevant clearance is presented in the table:

Assets

Value
resulting
from the books
accounting

Structure
values
resulting
from the books
accounting

Copy
updating
subject
further
verification

Value
balance sheet
subject
further
verification

OWKE 2-Various assets

4,500

100%

923

3 577

-Permanent measure-1

2,000

45%

415

1 585

-Permanent measure-2

900

20%

185

715

-Permanent measure-3

800

18%

166

634

-Intangible value

600

13%

120

480

-Long-term interstate settlement

200

4%

37

163

(4) In view of the fact that the balance sheet value of the individual assets in OWKE 2 cannot be lower than their trading value, the relationship between the balance sheet value established above and the commercial value of the individual assets has been checked. The following findings show as follows:

Assets

Value
balancing-1
(subject to
further
verification)

Value
commercial
designating
minimum
value level
balance sheet
individual
assets

Necessary
revision
values
balance sheet

Value
balance-2
(Adjusted
subject
further
verification)

OWKE 2-Various assets

3 577

x

x

3 577

-Measure 1-1

1 585

1800

+215

1 800

-Measure of permanent-2

715

650

-114

601

-Measure of duration-3

634

500

-101

533

-Intangible value

480

does not have

x

480

-Long-term interstate settlement

163

does not have

x

163

Amount 215,-corrects the carrying amount of the asset-1 in plus by reducing the update write-down previously set for this measure. At the same time, this amount correspondingly increases the amount of the write-off of the remaining assets for which the commercial value can be allocated. For the measure-2, this amount will be determined as follows: 215 × 900 ÷ (900 + 800) = 114,-. For a measure of duration-3: 215 × 800 ÷ (900 + 800) = 101,-. As the result of this settlement has shown that the newly established balance sheet value of the asset-2 measure is lower than its trading value, the difference needs to be settled on other assets, since the measure-2 should be shown in at least the value of the asset-2. 650,-. This means (as has been done in relation to the measure-1) the need to increase the value of this measure by 49,-(from 601 to 650). This increase results in the need to reduce the value of other assets by increasing their update write-off, including the amount of 49,-. The settlement may relate to a fixed measure 3 and its write-off will be increased by 49,-. The relevant findings are set out in the

Assets

Value
balance-2
(Adjusted
subject
further
verification)

Value
commercial
designating
minimum
value level
balance sheet
individual
assets

Necessary
revision
values
balance sheet

Value
balancing-3
(Adjusted
subject
further
verification)

OWKE 2-Various assets

3 577

x

x

3 577

-Measure 1-1

1 800

1 800

1 800

-Measure of permanent-2

601

650

+49

650

-Measure of duration-3

533

500

-49

484

-Intangible value

480

does not have

x

480

-Long-term interstate settlement

163

does not have

x

163

In view of the fact that a measure of duration-3 as a result of this adjustment would have a balance sheet value lower than its trading value, and in this case a further valuation of the carrying amount is necessary. This implies a need to increase the value of this measure by 16,-(from 484 to 500) and to settle this amount for the remaining assets of the centre. Since these assets (intangible assets and long term interstate settlement) do not have a commercial value, the settlement is arbitrarily carried out. In this case it appears reasonable to consider a write-off of the write-off (16) in proportion to the carrying amount of -1 of those assets. Thus, an intangible value would be: 16 × 480 ÷ (480 + 163) = 12,-, and for intermittal settlement: 16 × 163 ÷ (480 + 163) = 4,-.

5. The final settlement of the entire amount of the written write-off of OWKE-2 on the individual assets of this centre shall be as follows:

31.12.200A r.

Assets

Value
resulting
from the books
accounting

Original
extract
updating

Clearance of write-off between
individual assets

Writeback
in the books
accounting

Value
balance sheet

Goodwill

1,000

1,000

x

1,000

0

Service Point

2,500

400

x

400

2 100

Storerooms

4,500

379

x

379

4 121

OWKE 1-Various assets

3,000

0

x

0

3,000

OWKE 2-Various assets

4,500

923

x

923

3 577

-Measure 1-1

2,000

415-215

200

1 800

-Measure of permanent-2

900

185 + 114-49

250

750

-Measure of duration-3

800

166 + 101 + 49-16

300

500

-Intangible value

600

120 + 12

132

468

-Long-term interstate settlement

200

37 + 4

41

159

OWKE 3-Various assets

6,000

87

x

87

5 913

Total

21 500

2,789

x

2,789

18 771

Example 8.11. -Determination of the useful value of the object in question, the fixing of the update write-off and the subsequent balance sheet days where there are no indications for the need to reconduct the revaluation procedure assets

1. 31.12.200A r. JG's business unit has acquired three bets from another IJG unit for 5000,-. The bets are located in three different locations and will be in JG's economic benefit centres. At the level of these establishments (centres), the results of their operations will be assessed, thus and the corresponding value of the company. The value of the company shall be subject to testing for the loss of value whenever there are indications that it is likely that it has lost its ability to benefit economic benefits.

2. The data relating to this purchase are as follows:

31.12.200A r.

Purchase price
assigned
to individual plants

Fair value of assets
identifiable
on acquisition date

Goodwill
related to individual plants

Z1-Location 1

1 500

1,000

500

Z2-Location 2

1,000

750

250

Z3-Location 3

2,500

1,750

750

Total

5,000

3 500

1 500

3. The recoverable value of the goodwill of each site results from the recoverable amount of each plant, which is the higher of the useful value and the commercial value, determined and in this case for each site separately.

4. At the end of 200A the value of the recoverable plants was higher than their value resulting from the accounts.

5. At the end of 200B r. there were no indications that the procedure for establishing a write-down of the assets covered by the economic benefit measure was to be set up, but nevertheless the recoverable amounts of the undertakings were checked. They were still higher than the assets of those bets resulting from the accounts. So no updates were made.

6. At the beginning of the year 200C (i.e. the year after the passage of the plants under the management of the JG), the market conditions for the products manufactured by the Z1 plant have changed significantly. In the foreseeable future, the production of the plant must be significantly reduced, as it will decrease the possibility of selling the products manufactured by the plant in relation to the original projections. It is estimated that this sale may be less than 30% lower than the previous one. For this reason, the expected net cash flow from the Z1 plant was already reassessed at the beginning of this year.

7. The 12-year period of amortisation of the assets of the Z1 plant is foreseen (linear method) and it is not assumed that their final value (liquidation) is not relevant.

8. When determining the useful value of the Z1 for the nearest five-year period (years 200C-200G), the net cash flow forecasts are based on the current financial plan approved by the management of the JG. For the year 200H, the net cash flow growth rate was projected to be 3% (but will be below the average long-term growth rate in the market comprising the headquarters of Z1). For the remaining five years of the Z1 plant (200I-200B), a decreasing net cash flow rate increase was assumed, respectively: -2%, -6%, -15%, -25%, -67%.

9. A 15% discount rate was established, which is a pre-tax rate and reflects the risks directly linked to the establishment of 1.

10. Values established at the beginning of 200C By way of reestimates, they shall be as follows:

Year
operating
plant Z1

Year

Growth rate
estimated
flows
Net cash

Future
flows
cash
net

Factor
Discounting
at 15%

Current
value
flows
Monetary

2

200D

pf *

127

0.7561

96

3

200E

pf *

136

0.6575

89

4

200F

pf *

145

0.5718

83

5

200G

pf *

152

0.4972

76

6

200H

+ 3%

157

0.4323

68

7

200I

-2%

154

0.3759

58

8

200J

-6%

145

0.3269

47

9

200K

15%

123

0.2843

35

10

200L

-25%

92

0.2472

23

11

200B

-67%

30

0.2149

6

Utility value Z1

681

* According to the financial plan, which takes into account the projected (compared to 200A forecasts), the net cash flow is reduced as a result of the decrease of 30% of sales on the market served by Z1.

As the recoverable value of Z1 was established at the beginning of the 200C, the value of the assets of Z1 for the beginning of this year is compared with that value. The resulting value of the assets of Z1 at 31.12.200C indicates the initial value of the assets and accumulated until that date their depreciation of 83 (1 year × 1000 ÷ 12 years). The net value of assets Z1 at 31.12.200C is therefore 1417,-.

In view of the fact that the recoverable amount of Z1's assets is smaller (681) from their value resulting from the accounts (1417) by 736,-it is necessary to write off the asset value of the Z1 assets. In the first place, this copy will reduce the company's value from Z1. This can be as much as the value of the company, ie. 500,-. The remaining amount of the write-down (i.e. (236) the other assets of the Z1 will be affected.

The relevant data shows the table:

Year

Type of asset

Updated-
Value at the beginning of the year = balance sheet value at the end of the previous year

Skory-
Annual amount of annual amortas-
zate

Value resulting from
from the accounts-
Year-end (3-4)

Return value-
Walna

Decrease-
no write-off updates-
1.

Increase in write-off updates-
1.

Balance-of-balance-
Year-end
(5 + 7-8)

Skory-
fixed amount of annual amortiza-
For next year

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

200A

company value

500

-

-

other assets

1,000

-

-

1 000 ÷ 12 = 83

total

1 500

e.g. 1830

-

-

1 500

200B

company value

500

-

500

-

-

500

other assets

1.000

83

917

-

-

917

917 ÷ 11 = 83

total

1.500

83

1 417

e.g. 1 610

-

-

1 417

200C -start of the year

company value

500

-

500 * *

0

other assets

917

681 *

-

236 * *

681 * **

681 ÷ 11 = 62 * ***

total

1 417

200C -year end

company value

0

-

0

other assets

681

62

619

619 ÷ 10
years = 62

total

681

62

619

200D-year end

company value

0

-

0

other assets

619

62

557

557 ÷ 9 years = 62

total

619

62

559

200E-end of the year-and next

As shown, until the need to reestimate the net economic benefits is determined.

* Determined for the beginning of 200C r.

** Odpis made for the beginning of 200C

*** Value set at the beginning of 200C r.

**** Depreciation will be extended for 11 years and will apply to 200C as well, since the write-off of the asset value Z1 was made at the beginning of this year, so the depreciation for this and the following years is changed.

IX. CHANGES IN THE WRITE-OFF OF THE ASSET VALUATION

9.1. For each balance sheet date, an entity shall assess both for the assets identified as having an economic advantage, individually or as a group of economic benefits, whether or not there is a favourable requirement for it to be considered as having an economic advantage. indicating that, in previous periods, a copy of the asset valuation caused by the loss of the value of the assets has become, in relation to the specified asset, unnecessary, or requires a reduction or increase. To this end, the unit, using information from external and internal sources, determines what favourable changes-when compared to the state during the period when the last update was done-both in its surroundings and internal conditions (cf. Chapter IV).

9.2. Where there is evidence to justify a change (i.e. the deletion, reversal or increase) of the write-down of the asset valuation, the entity shall verify (re-establish) the recoverable amount of investments and assets used for operating activities, from which in the past, according to the The V-VIII Standard has been updated with a copy of the update.

It is important for the entity to determine, by comparing the net value of the asset in the asset with its newly established recoverable amount, whether a higher recoverable amount is not due to a discount reversal. It does not turn off the write-off of the asset only on account of the elapsed time, if the usable potential of the asset does not increase.

9.3. In the case referred to in point 9.2, the entity shall also verify the remaining economic life of the assets to be depreciated and their estimated residual value. If, in the opinion of the entity resulting from this verification, the new findings or corrections will indeed affect future economic benefits, it is possible to obtain a control over the object of the impairment assessment, which includes the assets depreciable, it is necessary to establish whether these changes result in an increase in the estimated net economic benefits associated with the facility. In so far as it is assessed that the new findings will not significantly change the economic benefits, the entity shall only make changes to the depreciation rate as to the determination. Otherwise, the entity reestablishes the recoverable value of the impairment assessment object and restores the write-down accordingly.

9.4. Write-offs which update the value of individual assets, individual or group-related impairment may be reduced only if the newly established recoverable amount indicates that the value of the individual assets has not been established. to increase the value of the estimated net economic benefits.

For this purpose, an entity shall: re-establish the recoverable amount of a whole-single or group-impairment assessment object, compare it with the value of that object resulting from the accounts at the balance sheet date, to which the value is redetermined recoverable, specifies the new (under new conditions) the amount of the write-off of the object, accounting for the write-off of the assets of the object of the impairment assessment, according to the principles set out in point 8.3. This is a group object and compares the existing update copy to of any of the assets covered by the group in question, the value of the impairment by the value of the write-off that is justified on the balance sheet date.

9.5. The adjustment amount of the update write-off is the difference between the higher recoverable value of the impairment assessment object and its lower value resulting from the accounts for the balance sheet date. This adjustment shall not be higher than:

-the update previously made (s),

-the recoverable amount established at the balance sheet date.

9.6. If an existing write-down of an asset which is part of a given impairment assessment object was higher than that of the relevant write-off on the balance sheet date, the entity reversed the previous one. a write-off applying the principles set out in the point. 9.7-9.9.

9.7. The determination of the new balance sheet value of the assets included in the group evaluation object of impairment caused by the reversal of the reversing write-off occurs by reducing the number of existing write-off of each of the the assets of the site, except for the goodwill. A write-down of the company's value cannot be reversed in any subsequent period.

The adjustment of the write-off of the value of the asset in question must not result in a balance sheet value that is higher than the value of the asset in which it would be included in the accounts, including the accumulated depreciation. on the balance sheet date, if in the past, in relation to that asset, no write-off has been made at all.

9.8. In the case of an asset that has an economic benefit at a time, and at the same time as to which the reversal of the write-down is justified, the reversal of the write-off shall be recognised as appropriate to the of the investment or operational nature of that asset and the earlier recognition of the write-off of the asset.

If a valued asset is depreciated, a reversal of the update write-off may not result in the fixing of its carrying amount at a level higher than that of the asset at the balance sheet date, if earlier There is no copy updating its quote.

9.9. If the reclaim on the balance sheet date for the recoverable amount of assets is less than their value resulting from the accounts, the entity shall carry out an appropriate increase in the value of the existing write-down of the assets. the updating value of the valued assets. For this purpose: in the case of an asset which has an economic advantage, an entity shall apply the rules set out in Chapter VI, and, in the case of an asset that has an economic benefit, the entity shall apply the rules set out in Chapter VI. VIII.

9.10. If the reversal of the write-down of a given element of the impairment assessment object is higher than the adjustment to be carried out (in the light of the limitation given above), then the excess over a possible revaluation of the asset in question shall be accounted for by the other assets covered by the group's impairment assessment object (other than the goodwill) in proportion to their share of the value resulting from the accounts at the date of the reversal of the write-off in the resulting book accountancy of the total value of this object of the impairment assessment established on the same day, bypassing the value of the company with this related object.

9.11. The adjustment of the updating write-off shall result in an increase in the carrying amount of the individual assets and, as the case may be, the demonstration of the remaining operating income or financial income affecting the financial result of the period.

9.12. In the case of a valuation of an asset shown in the value of the revalued write-off, the write-off shall consist of the write-off of the asset-the income affecting the financial result of the period, but up to a maximum of the corresponding amount previously (the burden of the financial result) to the write-off of this asset. A possible surplus of the reversed write-off over the amount of deductible from the financial account period of the income statement, the entity refers to the capital from the revaluation of the asset, but only up to the amount determined in accordance with the points. 9.7.

9.13. In the case of depreciable assets, the adjustment of the update write-off results in the need to verify the depreciation rate, as the value of the component changes to depreciate.

Example 9.1. Reversing the write-off of the update in subsequent reporting periods

1. Output assumptions as in the example 8.10-" Determining the useful value of the object in question, fixing the update write and handling the next balance sheet days in the event that there are no indications for the need for re-operation carrying out an asset valuation update procedure '.

2. At the end of 200C the economic entity has shown, in its accounts and supporting documents, the following records of the economic benefit to which the entity is concerned:

31.12.

Value in case no update write-down has been made

Amorty-
start-of-value-
For the following year

Value deriving from the accounts

Amorty-
the balance sheet value for the following year

Z1-Other assets

Initial value

Zakumu-
lowed depreciation

War-
Net value

Start value-
1.

Zakumu-
Lowman amortiza-
1.

Update Copy

War-
Bilan-
Owl

200A

1,000

-

1,000

83

1,000

-

-

1,000

83

200B

1,000

83

917

83

1,000

83

-

917

83 * *

200C

1,000

166

834

83

1,000

145

236

619

62

200D

1,000

249

751

83

1,000

207

236

557

62

200E

1,000

332

668

83

1,000

200F

1,000

415

585

83

1,000

200G

1,000

498

502

83

1,000

200H

1,000

581

419

83

1,000

200I

1,000

664

336

83

1,000

200J

1,000

747

253

83

1,000

200K

1,000

830

170

83

1,000

200L

1,000

913

87

87 *

1,000

200B

1,000

1,000

0

X

1,000

* The value resulting from the example of rounding to the unity of the annual depreciation amount in the following 11-years.

** This depreciation amount will not, however, be recorded in 200C since at the beginning of this year there has been a change in the estimate; a new depreciation amount (after updating the update) is fixed (236) and shows a depreciation of 62,- ([ 917-236] ÷ 11 years).

3. In the next (200D) year, the external conditions affecting the functioning of the economic benefits centre have changed significantly. The changes are favourable and they announce higher than the net economic benefits of using this site. This is why the net economic benefits and recovers of this site were reassessed; it was-955,-.

4. At 31.12.200D the resulting value of the assets of the site, fixed at the current updating write, is 557,-and may be increased by 398,-(955-557).

5. The update copy shall be made in such a way that the balance sheet of Z1 is increased but at the same time that this value is not higher than the limit value of the reversed write-off which is determined by the resulting accounting book value of Z1 determined taking into account the accumulated depreciation of the assets Z1 and on the assumption that no write-off has been made in advance of these assets.

6. The limit value of the reversed write-off shall be at the end of 200D. 751,-. This implies the possibility of increasing the current value of the assets of Z1 by 194,-(751-557), by reducing the write-off of the assets of Z1; this results in a possible increase in the value of the assets of Z1.

7. The balance sheet value of the assets of Z1 will be at the end of 200D. and at the end of the following eg. two years, as follows, if there are no indications to justify a revalidation of the recoverable amount:

31.12.

Value if no update write-down was previously performed

Amorty-
start-of-value-
For the following year

Value deriving from the accounts

Amorty-
The balance of the balance sheet
For the following year

Z1-Other assets

Start value-
1.

Accumulate-
Depreciation

Net Value

Value Beginner-
1.

Purchase-
lowed depreciation

Copy of update-
1.

Balance-of-balance-
1.

200A

1,000

-

1,000

83

1,000

-

-

1,000

83

200B

1,000

83

917

83

1,000

83

-

917

83 * *

200C

1,000

166

834

83

1,000

145

236

619

62

200D

1,000

249

751

83

1,000

207

42

751

83

200E

1,000

332

668

83

1,000

290

42

668

83

200F

1,000

415

585

83

1,000

373

42

585

83

200G

1,000

498

502

83

1,000

456

224

320

53

200H

1,000

581

419

83

1,000

200I

1,000

664

336

83

1,000

200J

1,000

747

253

83

1,000

200K

1,000

830

170

83

1,000

200L

1,000

913

87

87 *

1,000

200B

1,000

1000

0

X

1,000

8. Assuming that at the end of 200G there was a need to revaluate the recoverable amount and to verify the resulting value of the assets of the Z1 resulting from the accounts, the value of the Z1 resulting from the accounts should be re-examined on that balance sheet date. accounting (i.e. 502) with recoverable value, which for example is 320,-.

9. The relationship of 502,-and 320,-means the need to increase the write-off of the 182,-and the correction of depreciation (if it does not establish that the depreciation period should be different than previously assumed) from 83,-at 53,-(i.e. 320 ÷ 6 years).

Example 9.2. Estimation of net cash flows if restructuring is envisaged, fixing of the update write, subsequent reversal of the write-off

31. 200A

1. JG's business unit at 31.12.200A r. carry out a procedure for assessing the loss of the value of the Centre for the economic benefit of which it is a Zl. 1.

2. The value of the plant resulting from the accounts for that day is 15 000,-and corresponds to the gross value of the assets of the plant (70 000) less the accumulated depreciation (55,000).

3. The estimated useful life of Z1 is 10 years.

4. It was established that the recoverable amount Z1 sets the utility value of the plant, which is estimated at 14% of the discount rate before tax.

5. The management of the financial plan indicates that, in 200C, this plant will be restructured, the cost of which, according to the projections, will be 500,-. The Management Board expects that the restructuring will contribute to a reduction in costs (and as a consequence of future expenses) related to the operation of the plant.

Estimating net cash flows for Z1 at 31.12.200A r. Whereas it should be possible without taking into account the estimated costs of restructuring costs in the financial plan (only after 200C), and without taking into account the estimated benefits (without reducing the expenditure), which JG expects to obtain as a result of the restructuring (it will be carried out from 200D starting).

An example calculation of the useful value at the end of 200A r. may be presented as follows:

Year

Future net cash flow

Discount factor at the rate of 14%

Current Cash Flow Value

1

200B

1 500

0.8772

1 316

2

200C

1 400

0.7695

1 077

3

200D

2 100

0.6750

1 418

4

200E

2,600

0.5921

1 539

5

200F

1,750

0.5194

909

6

200G

2 100

0.4556

957

7

200H

2,400

0.3996

959

8

200I

2,400

0.3506

841

9

200J

2 300

0.3075

707

10

200K

2,000

0.2697

539

Utility value Z1

10 263

Recoverable amount at 31.12.200A r. is 10 263,-and is lower than the resulting value of the accounts Z1-15 000,-. As a result, at 31.12.200A, JG will reduce the asset value of the Z1 facility by a total of 4737 (15 000-10 263). As a result, the balance sheet value of Z1 will be 10 263 per day,-.

31.12.

Value in case no update write-down has been made

Amorty-
start-of-value-
For the following year

Value deriving from the accounts

Amorty-
The balance of the balance sheet
For the following year

Z1-Other assets

Start value-
1.

Accumulate-
Amortiza-
1.

Net Value

Initial value

Accumulate-
Amortiza-
1.

Copy of update-
1.

Balance sheet value

200A

70,000

55,000

15,000

1 500 *

70,000

55,000

4 737

10 263

1 026 *

200B

70,000

56 500

13,500

1 500

70,000

56 026

4 737

9 237

1 026

200C

70,000

58,000

12,000

1 500

200D

70,000

59 500

10,500

1 500

200E

70,000

61000

9,000

1 500

200F

70,000

62 500

7,500

1 500

200G

70,000

64,000

6,000

1 500

200H

70,000

65 500

4,500

1 500

200I

70,000

67,000

3,000

1 500

200J

70,000

68 500

15,000

1 500

200K

70,000

70,000

0

X

* The expected further useful life of Z1 is e.g. 10 years, the linear depreciation method shall be used (in place of the accelerated method used so far).

31. 200B

6. In the course of 200B depreciation of the assets of Z1 in the amount of 1026,-(i.e. 10 263 ÷ 10 years).

7. At the end of 200B r. The restructuring was not yet in detail, and therefore no special-purpose reserve was created in connection with it.

In the absence of a specific restructuring programme at 31.12.200B. The JG cannot change the net cash flow estimates planned for 200C nor can it reduce the expenditure (as an expected benefit of restructuring) from 200D. 1. In such a situation, and in the absence of any other indication, which could cast on the need to re-verify the 200A estimates, recalculate the recoverable amount at 31.12.200B. is not necessary.

31. 200C

8. In the course of 200C The depreciation of the assets of Zł in the amount of 1026,-(ie. 9237 ÷ 9 years).

9. At the end of 200C The restructuring was in detail planned and therefore a special-purpose reserve of 500,-i.e., was created. in the amount of the amount predicted beforehand and not requiring-according to best estimates-changes.

10. It is expected that the restructuring will be carried out in 200D.

(11) The reduction in the expenditure related to the use of the Z1 after this period depends on the size expected in the subsequent years of production in Z1, therefore in each period from 200E the expected benefit of the restructuring will be different. value.

12. The 14% discount rate was not changed, while recognising that it is still valid.

The establishment of the restructuring programme is the basis for recognising that the economic benefits centre will, from the time of completion of the restructuring, be a different economic advantage. Its use in this case will entail lower operating expenditure lower than hitherto.

Value (resulting from accounts) of assets Z1 at 31.12.200C r. is 8211,-(ie. 9237-1026). In view of the commitment made by the JG to carry out the restructuring (a reserve was created in 200C), the value of the undertaking's use needs to be verified (new).

It should be borne in mind that, firstly, the creation of a restructuring reserve in 200C means that, in 200D, this restructuring will be carried out (expenditure incurred). However, the restructuring expenditure may not charge the cash-flow provided as an economic advantage from the use of the Z1 plant in the year in which the restructuring will only be in the course of implementation (for 200D). Therefore, the net cash flow provided for in 200D. do not (in relation to previous estimates) change for this reason. Secondly, as of the completion of the restructuring, the net economic benefits must be taken into account in the forecasts for the benefit of the resulting restructuring. It will happen since the beginning of 200E. Calculation of the useful value of Z1 at the end of 200C is shown as follows:

Year

Future net cash flow after taking into account the benefits of restructuring

Discount factor at the rate of 14%

Current Cash Flow Value

1.

200D

2 100

0.8772

1 842

2.

200E

2 850

0.7695

2 193

3.

200F

1,900

0.6750

1 283

4.

200G

2 250

0.5921

1 332

5.

200H

2,550

0.5194

1 324

6.

200I

2,550

0.4556

1 162

7.

200J

2,400

0.3996

959

8.

200K

2 050

0.3506

719

Utility value Z1

10 814

At 31.12.200C the recoverable amount of the Z1 plant (10 814) is higher than that resulting from the accounts of the value for that day (8211 = 70 000-57 052-4737) by 2603,-. As a result, it is necessary to re-examine the reversal part of the update write.

The limit for the reversal of the updating copy sets the amount of 12,000 on the one hand,-i.e. the value of the assets of the Z1 plant at the end of 200C, if no write-off occurred, on the other hand, at 31.12.200C. must not be higher than the recoverable amount of 10 814,-designated for that day. This means that reversing the update write should result in the asset value Z1 to the recoverable amount (10 814), as it is lower. A copy of the update may be reversed by the amount of 2603,-(i.e. 10814-8211) and end of 200C r. It will be 2134,-(i.e. 4737-2603). In this case, there may be a reversal of the update write-down in the full (established above) height.

Capture the results of the relevant calculations at the end of 200C. (and subsequent years, assuming no need for revaluation of recoverable amount Z1) is presented as follows:

31.12.

Value in case no update write-down has been made

Amorty-
start-of-value-
For the following year

Value deriving from the accounts

Amortiza-
Balance sheet value for the following year

Z1-Other assets

War-
Start-in-time
1.

Purchase-
Lowman amortiza-
1.

War-
Net value

War-
Start-in-time
1.

Accumulate-
Amortiza-
1.

Copy of the current-
That

Balance sheet value

200A

70,000

55,000

15,000

1 500 *

70,000

55,000

4 737

10 263

1 026 *

200B

70,000

56 500

13,500

1 500

70,000

56 026

4 737

9 237

1 026

200C

70,000

58,000

12,000

1 500

70,000

57 052

2 134

10 814

1 352 * *

200D

70,000

59 500

10,500

1 500

70,000

58 404

2 134

9 462

1 352

200E

70,000

61,000

9,000

1 500

70,000

59 756

2 134

8 110

1 352

200F

70,000

62 500

7,500

1 500

70,000

61 108

2 134

6 758

1 352

200G

70,000

64,000

6,000

1 500

70,000

460

2 134

5 406

1 352

200H

70,000

65 500

4,500

1 500

70,000

63 812

2 134

4 054

1 352

200I

70,000

67,000

3,000

1 500

70,000

164

2 134

2 702

1 352

200J

70,000

68 500

1 500

1 500

70,000

66 516

2 134

1 350

1 350

200K

70,000

70,000

0

x

70,000

67 866

2 134

0

x

* The expected further useful life of Z1 is e.g. 10 years, the linear depreciation method will be used (in place of the accelerated method used hitherto).

** Adjusted depreciation as a result of the increase in the balance sheet value of Z1 (10 814 ÷ 8 years).

Example 9.3. Estimation of net cash flows when expenditure is foreseen for improvement or improvement of products obtained from the facility in question, the fixing of the update write, subsequent reversal of the write-off

31. 200A

1. JG's business unit at 31.12.200A r. carry out the procedure for determining the write-off of the assets of the centre of the economic benefit caused by the loss of the value of which the Z1 is.

2. The value of the plant's assets resulting from the accounts for that day is 15,000,-and corresponds to the gross value of the assets (70 000) of the plant less the accumulated depreciation (55,000).

3. The expected period of further use of Z1 is 10 years.

4. It was established that the recoverable amount Z1 sets the utility value of the plant, which is estimated at a 14% discount rate before tax.

5. The management planning activity Z1 predicted the estimated cost of ownership of the plant in its current condition and the necessary to maintain the expected level of economic benefits.

6. The approved financial plan provides that in the year 200E the expenditure of 2500 shall be incurred-improving the quality and efficiency parameters of the fixed assets used in the Z1 plant.

Determination of future net economic benefits (in the form of useful value) from the Z1 at the balance sheet date of 31.12.200A r. takes into account (over the period of the entire estimate of this day) the expenses associated with the use of the plant in its current condition, necessary to obtain the expected economic benefits.

The sample values that are listed below include expenditure. Calculation of useful value at the end of 200A r. may be presented as follows:

Year

Future net cash flow

Discount factor at the rate of 14%

Current Cash Flow Value

1

200B

2 217

0.8772

1 945

2

200C

2 144

0.7695

1,650

3

200D

2,055

0.6750

1 387

4

200E

2,472

0.5921

1 464

5

200F

2,533

0.5194

1 316

6

200G

2 483

0.4556

1 131

7

200H

2 412

0.3996

964

8

200I

2,553

0.3506

895

9

200J

2 423

0.3075

745

10

200K

2 285

0.2697

616

Utility value Z1

12 113

In the reported net cash flow forecast values at 31.12.200A r. the expenditure planned for the 200E shall not be taken into account for the purpose of improving the quality and efficiency of the fixed assets used in the Z1 plant, nor to the expected increase in economic benefits for this purpose. According to the current estimate (at 31.12.200A), the estimate is the condition of Z1 and its ability to benefit economic benefits.

Recoverable amount at 31.12.200A r. is 12 113,-and is lower than the resulting value of the accounts Z1-15 000,-. Therefore, at 31.12.200A, the JG should reduce the value of the assets (resulting from the accounts) of the Z1 centre by a total of 2887,-(15 000-12 113). As a result, the balance sheet value of the assets of Z1 will be 12 113 per day,-.

The amount of annual depreciation adjusted for the remaining 10 years shall be 1211,-(i.e. 12 113 ÷ 10 years).

31. 200B

7. In the course of 200B The depreciation of the assets of Z1 in the amount of 1211,-(ie. 12 113 ÷ 10 years). The value (resulting from the accounts) of the Z1 assets is at 31.12.200B. 10 902,-(15 000-2887-1211).

8. At the end of 200B r. there were no indications that the net cash flow associated with the use of the Z1 had to be reassessed. The expected net cash flow determined in 200A is still expected in the expected sizes.

31. 200C

9. In the course of 200C The depreciation of the assets of Z1 in the amount of 1211,-(ie. 10 902 ÷ 9 years). The resulting value of Z1's assets is at 31.12.200C. 9691,-.

10. At the end of 200C no indication of the need to reestimate the net cash flow associated with the use of the Z1 has occurred. The expected net cash flow is expected to continue to be expected in the expected 200A year.

31. 200D

11. In the course of 200D The depreciation of the assets of Z1 in the amount of 1211,-. The value resulting from the accounts at 31.12.200D shall be 8480,-.

12. At the end of 200D r. there were no indications that the net cash flows associated with the use of the Z1 were to be reforecast. The expected net cash flow is expected to continue to be expected in the expected 200A year.

31. 200E

13. In the course of 200E The depreciation of the assets of Z1 in the amount of 1211,-. The value resulting from the accounts at 31.12.200E is 7269,-.

14. During the course of this year, expenditure on improvement has been made, thanks to which the quality and efficiency parameters of the fixed assets of the Z1 have been changed. These inputs were 2500,-and increased (resulting from the accounts) the value of the assets of this facility to 9769,-.

15. Since the improvement has already been carried out and the expenditure is not incurred at the end of the year 200E. there are indications that the net cash flow associated with the use of the Z1 has to be reassessed. An estimate of the net cash flow for this plant has been made for the remaining period of its use. The expected net cash flow determined in 200A needs to be changed to take into account the additional benefits that the facility will obtain through the improvement of assets (fixed assets).

Calculation of useful value at the end of 200E on the basis of new estimates, the following shall be presented:

Year

Future net cash flow

Discount factor at the rate of 14%

Current Cash Flow Value

1

200F

3 032

0.8772

2,660

2

200G

3 275

0.7695

2 520

3

200H

3 172

0.6750

2 141

4

200I

3 195

0.5921

1 892

5

200J

3 310

0.5194

1 719

6

200K

2 800

0.4556

1 276

Utility value Z1

12 208

The new recoverable amount of 12 208,-is higher than the asset value of the Z1 resulting from the accounts at the balance sheet date (9769) and therefore JG should consider a reduction (reversal) of the asset update write-off of Z1, which is the day of the day Balance sheet 2887,-. However, the limit on the amount of the reversed write-off of the asset shall be determined by the value of the assets of Z1 at the end of 200E if no write-off has been made before, but only to increase the value of the asset for improvement. This value is 11,500,-(15 000-depreciation for 4 years + improvement 2500) and includes the resulting asset depreciation scheme at 31.12.200E (9000) and the improvement expenditure incurred in 200E. (2500). Since this value is lower than the recoverable amount, but higher than the net present value of the assets resulting from the accounts, the write-off may be reversed in such a way that the carrying amount of the assets of Z1 is 11,500,-. The reversal amount of the write-off will be 1731,-(i.e. 11 500-9769) and-as the calculations indicate-the reversal will only cover the part (from 2887) of the update write-down made earlier.

The results of the calculations (on the assumption that there will be no indication in the following years justifying further estimates of the recoverable amount) are presented in the table:

31.12.

Value in case no update write-down has been made

Depreciation of initial value for the following year

Value deriving from the accounts

Depreciation of the balance-sheet value for the following year

Z1-Other assets

Start value-
1.

Zaku-
It's a lowman amortic-
Zate

Net Value

Start value-
1.

Purchase-
Lowman amorty-
Zate

Copy of the current-
That

Balance-of-balance-
1.

200A

70,000

55,000

15,000

1 500 *

70,000

55,000

2,887

12 113

1 211 * *

200B

70,000

56 500

13,500

1 500

70,000

56 211

2,887

10 902

1 211

200C

70,000

58,000

12,000

1 500

70,000

57 422

2,887

9 691

1 211

200D

70,000

59 500

10,500

1 500

70,000

58 633

2,887

8 480

1 211

200E

72 500

61,000

11,500

1 917 * **

72 500

59 844

1 156

11,500

1 917 * **

200F

72 500

62 917

9 583

1 917

72 500

61 761

1 156

9 583

1 917

200G

72 500

64 834

7,666

1 917

72 500

63 678

1 156

7,666

1 917

200H

72 500

66 751

5 749

1 917

72 500

65 595

1 156

5 749

1 917

200I

72 500

68 668

3 832

1 917

72 500

67 512

1 156

3 832

1 917

200J

72 500

70 585

1 915

1 915

72 500

69 429

1 156

1 915

1 915

200K

72 500

72 500

0

x

72 500

71 344

1 556

0

x

* The original depreciation amount for the 10-year period of use of Z1.

** Depreciation resulting from the settlement of the balance-sheet value for the useful life of the Z1.

*** Adjusted (as a result of improvement) depreciation of the gross value of assets Z1: 11500 ÷ 6 years = 1917,-.

X. LOSS OF GOODWILL SHOWN IN CONSOLIDATED FINANCIAL STATEMENTS

10.1. If an entity holds shares in subsidiaries and compiles a consolidated financial statement, the consolidated value of the company shall be assessed at the time of the consolidated balance sheet for each balance sheet date or not. loss of its value.

10.2. This assessment-in the case of having less than 100% of the participation in the subsidiary-requires the finding of:

-100% of goodwill,

-100% of the net assets of the subordinated entity, in the value provided for inclusion in the consolidated report,

-100% of the value of the recoverable subordinated unit, the value of which is the value of the company

-100% of the difference between the recoverable amount of the subordinated unit and the value of 100% of the net assets of the subordinated entity increased by 100% of the value of the company's subsidiary,

-a possible write-off of the value of the company caused by the loss of its value (maximum in value of 100%),

-the settlement of any surplus write-off above the value of the write-down of the company's value on the individual assets of the subordinated entity included in the consolidated financial statements.

10.3. A write-off of the company's value of the subsidiary included in the consolidation shall debit the consolidated profit and loss account; it shall not affect the participation of minority shareholders in the consolidated result.

10.4. Write-downs of the individual assets of a subordinated entity included in the consolidated financial statements shall be charged to the consolidated capital of the revaluation, if the subordinated entity occurs at the balance sheet date of such capital a it has been created during the holding period and is associated with assets whose value is reduced as a result of the update write-off. Update write-downs reduce this capital up to zero. The excess write-off on the amount of capital from the revaluation shall be debited from the consolidated profit and loss account, as is a write-off when the revaluation capital does not occur. Such a copy-in relation to the determination of the minority shareholders ' participation in the group's profit-affects the financial result of the capital group only in the amount proportional to the ownership rights of the parent entity in the subsidiary.

Example 10.1. Copy to update the goodwill shown in the consolidated financial statements

1 January 200A r. The parent undertaking of the JD covered 80% of the shares in the subsidiary JZ paying for them 8000,-. The fair value of JZ's net assets was 7,500,-.

2. On the day of acquisition of the JD established the value of the company concerning the subsidiary company JZ in the amount of 2000,-(i.e. 8000-80% x 7500).

3. The parent undertaking, drawing up the consolidated financial statements at the end of 200A, before showing the value of the company, must check whether during that year there has been a loss of value of the company relating to the JZ, in which the company is treated as a centre for economic benefits. To this end, before the completion of the consolidation procedures, the JD unit established the recoverable amount of the entire JZ unit, despite having in this unit less than 100% of ownership rights. The value was 5000,-.

4. In order to establish a possible write-off, the JD must determine the resulting value of the whole JZ at the end of 200A r. and concerning JD the entire value of the company.

5. At the end of 200A r. the value of 100% of the net assets of the JZ unit provided for recognition in the consolidated financial statements amounted to 6750,-of which the minority share is 1350,-(i.e. 20% x 6750). The asset value was 10 000,-and the liabilities of JZ 3250,-.

6. On the JD company value-80% is 2000,-hence 100% of the value of the company is 2500,-(ie. 2000 ÷ 0, 8).

(7) The value of all the assets of the Z1 (the centre of the economic benefit concerned) that the accounts of the accounts at the end of 200A shall be based on the accounts of the accounts. 9250,-(6750 + 2500).

(8) Since the recoverable amount (5000) is less than the resulting value of the asset value of Z1-9250,-the update should be 4250,-. Of this amount, the value of the company is 2500,-(80% of 2500 = 2000 will bear the value of the company established for JD and 20% of 2500 = 500 will be charged to the minority shareholders ' shares).

9. The remaining amount of the write-off of 1750,-requires the settlement of the individual assets of JZ accounted for in the consolidated financial statements.

10. In relation to this in the consolidation sheet, the order presented in the table below has been made. The table gives only those values that are relevant to illustrate the procedure that is presented.

Consolidated financial statements

Value at 31.12.200A r. before measuring the loss of value

Collation resulting from the application of the procedure for measuring the impairment of assets

Balance sheet value of the consolidated position-
Financial statements

Dt

Ct

JZ Value

2,000

500 (1)

2 000 (2)
500 (3)

0

Actis-1 JZ

5,000

875 (4)

4 125

Aktywa-2 JZ

4,000

700 (4)

3 300

Aktin-3 JZ

1,000

175 (4)

825

Total assets

12,000

8 250

Equity-core capital

8,000

8,000

Shareholders ' capital (shareholders)

1 350

500 (3)
350 (4)

500 (1)

1,000

Consolidated financial result

-600

2 000 (2)
1,400 (4)

-4 000

Liabilities and provisions of the JZ

3 250

3 250

Total liabilities

12,000

4 750

4 750

8 250

(1) Draft adjustment of goodwill of a goodwill of 20% of the net assets of JZ and falling on minority shareholders to its 100% dimension.

(2) A copy which updates the value of the company concerning JZ, but falling on the JD.

(3) Unregister the working adjustment of goodwill.

(4) A copy updating the value of the individual assets of the JZ shown in the consolidated accounts (only for example according to the structure of the value) on individual assets (ie. taking into account their long-or short-term-use, operational or investment in nature); this copy also takes into account the fact that in 20% it should be charged to minority shareholders.

Attention! It would be incorrect to calculate a write-off on the basis of 80% of the recoverable amount and 80% of the net asset value shown in the consolidated data. Such a solution would not correspond to the economic content of the consolidating procedures. Since net assets are included in the consolidation procedures, 100% of the net asset is to be of a full value (and not 80%) of those assets. The result would have been distorted by the consolidated result and the minority shareholders ' shares.

XI. PRESENTATION AND DISCLOSURE IN THE FINANCIAL STATEMENTS OF IMPAIRMENT OF ASSET VALUE

11.1. In accordance with the Accounting Act-Annex No 1-an entity in additional information and explanatory notes gives information on:

-reductions (write-off) or increases (inverted write-off) of the values of the types of fixed assets, intangible assets and long-term investments (point 1.1),

-the amount and the reasons for the write-off of fixed assets (point 2.2),

-the amount of the write-off of stocks (point 2.3),

-write-off of duties, indicating the state at the beginning of the financial year, increases, uses, dissolution and standing at the end of the financial year (point 1.9).

11.2. In the event that other information than those mentioned above could materially affect the assessment of the property, financial situation and financial result of the entity, this information should be disclosed (paragraph 9).

This may concern:

1. information on the individual assets to which the update write-downs were related to the loss of value or to which the reversal of the update has been reversed, and which includes:

-the type of asset,

-an indication as to whether the recoverable amount of the asset corresponds to its commercial value or its useful value,

-providing the reason for limiting the determination of the recoverable amount on the basis of respect of only one of the two values: commercial or utility,

-an indication as to whether the recoverable amount corresponding to the commercial value was established on the basis of the references to the active market,

-the amount of the update copy or the amount of reversal of the update copy and the method of recognition: in the profit and loss account or in equity, in the company's negative value or in the income of future periods;

2. the information on the economic benefits which have been used for the recovery of the impairment caused by the loss of value or for which the reversal of the update has been reversed, which includes:

-site description,

-an indication as to whether the recoverable amount of the site corresponds to its commercial value or its useful value,

-providing the reason for limiting the determination of the recoverable amount on the basis of respect of only one of the two values: commercial or utility,

-an indication as to whether the recoverable amount corresponding to the commercial value was established on the basis of the references to the active market,

-the amount of the update, or the amount of reversal of the update, broken down by the types of assets classified as economic benefits and the way in which it is recognised: in the profit and loss account, in equity, in negative goodwill or in future periods of time,

-a way of grouping the assets, if any;

3) the most important events and circumstances that led to the capture and reversal of the update write-down caused by the loss of value.

1 Within the meaning of the Standard, the value of the utility is not the same as the useful value referred to in art. 31 par. 1 Accounting Act.

2 CAPM (Capital Asset Pricing Model)-a model describing the relationship between the risk and the expected rate of return from a valued asset. Its formula and description of the assumptions include studies dedicated to financial instruments and financial engineering.