COMMUNICATION No 5 OF THE MINISTER OF FINANCE

of 28 June 2011

on the announcement of a resolution of the Accounting Standards Committee on the adoption of a revised national accounting standard No 1 "Cash Flow Account"

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• Codified text

It is announced by Resolution No. 5/11 of the Accounting Standards Committee of 10 May 2011. on the adoption of a revised national accounting standard No 1 'Cash Flow Account', which is an annex to the Communication.

Minister of Finance

in z. Ludwik Kotecki

Annex 1. [ Resolution No. 5/11 OF THE ACCOUNTING STANDARDS COMMITTEE of 10 May 2011. on the adoption of a revised national accounting standard No 1 'Cash flow account']

Annex to the Communication No. 5 of the Minister of Finance
of 28 June 2011 (pos. 26)

Resolution No 5/11 OF THE ACCOUNTING STANDARDS COMMITTEE

of 10 May 2011

on the adoption of a revised national accounting standard No 1 "Cash flow statement"

Pursuant to § 2 item 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. In connection with the need to make accounting adjustments in the revised national accounting standard No 1 (example No 2-Consolidating monetary accounts by means of a unit of accounts), the Committee shall adopt a revised the national accounting standard No 1 'Cash flow statement', which is annexed to this resolution.

2. The standard referred to in paragraph 1 shall enter into force on the day of its publication in the Official Journal of the Minister of Finance.

3. Traci Resolution No. 3/10 of the Accounting Standards Committee of 23 February 2010. on the adoption of a revised national accounting standard No 1 'Cash flow account'.

§ 2.

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

Committee Secretary	Chairwoman of the Accounting Standards Committee
Aneta Gołdyń	Joanna Dadacz

Annex

NATIONAL ACCOUNTING STANDARD NO 1

"Cash flow account"

I. Purpose and scope of application of the standard

1.1. Information on cash flows, that is about the events that caused the entity during the period covered by the report to change the state of cash and its equivalents, allows users of the financial statements to evaluate:

(a) the sources of origin and the amounts obtained by the unit of cash and its equivalents, and

(b) the directions and the size of their use in the course of the business

The economic decisions taken by users of the financial statements require the definition of:

-the ability of the entity to obtain the influence and rationale of its expenditure,

-the period during which receipts and expenditure will occur, and

-the degree of certainty of cash flows.

The cash flow statement, in combination with other elements of the financial statements, provides such information. They enable users of the report to assess changes in the net assets of the entity, its financial structure (including liquidity and solvency) and the unit's ability to impact on the amount and period of cash flows, in order to adapting to changing market conditions and opportunities.

The cash flow statement also facilitates the comparison of financial information provided by different entities, as it eliminates the effects of different solutions on the basis of operations and events of the same kind.

The information contained in the cash flow statement allows for the correct prediction of future cash flows and, at the same time, to verify the accuracy of the prior projections. They are also useful for analyzing the relationship between profitability and net cash flow of an entity.

1.2. The purpose of this National Accounting Standard, hereinafter referred to as the Standard, is to lay down detailed rules for the preparation of the cash flow account referred to in Article 3. 48b and 55 paragraphs 2 of the Act of 29.09.1994. of accounting (Dz. U. 2009 r. Nr 152, poz. 1223, as of late. zm.), hereinafter referred to as the Law. This will make it easier to show in the cash flow account the correct information about the sources of revenue and the directions of expenditure and changes in the cash and cash equivalents that occurred during the period covered by the account and will allow for the provision of the comparability of the contents of the items shown therein.

In the application of the explanations contained in the Standard, the provisions of the Act should be considered.

1.3. In accordance with the Act, entities whose annual accounts are subject to examination and publication are obliged to draw up a cash flow statement. This Standard sets out detailed rules for the preparation of the cash flow statement, which provides the minimum information contained in Annex 1 to the Act. It also contains specific rules for the compilation of the consolidated cash flow statement.

For the compilation of the cash flow account by banks, insurance undertakings and other financial institutions which are subject to Annexes 2 and 3 to the Act, the provisions of the Standard shall apply mutatis mutandis.

It is recommended that the cash-flow calculation units, although the Act does not impose such an obligation on them, also apply the provisions of this Standard.

1.4. The content of the Standard shall be in accordance with the International Accounting Standard (IAS) No 7, except that:

a) The Standard does not discuss the specificity of the cash flow account in banks, insurance companies and other financial institutions.

(b) In the Standard, more specifically than IAS 7 sets out the rules for the recognition of individual items of the cash flow account of entities other than banks and insurance companies, which results from the detail of the solutions of the Polish balance sheet law.

c) Standard does not recommend separate disclosure in the cash flow statement of information on income tax flows-the minimum amount of information displayed in the cash flow statement specified in the annexes to the Act on accounting does not include such information-in Standard it is recommended to include them as additional information and explanatory notes to the cash flow statement.

(d) In the case of the use of the indirect operating flow method, Standard operating flows shall recommend adjusting the net financial result, while IAS 7 allows for the correction of the gross financial result. This has an impact on the occurrence or value of some of the result adjustments.

(e) The Standard recommends that the overdraft credit and the credit line should be shown in the cash flow account "per balance", in the financial activity. According to IAS 7, some entities may show changes in the state of the credit in the current account as part of operating activities or as cash equivalents.

II. Definitions

2.1. The terms used in the Standard indicate shall mean:

Cash -these are monetary assets in the form of national means of payment, foreign exchange and foreign exchange, which are traded in cash or on the market following the current bank accounts. They include cash in cash and deposits repayable on demand;

Cash equivalents -these are cash, non-cash, and other financial assets that are at the same time:

1) a high degree of liquidity, that is the ease of exchange for a certain amount of cash,

2) a negligible risk of impairment, and

3) a short term of payment or a requirement, not longer than 3 months from the date of receipt, issue, acquisition or assumption (deposits);

Cash flow -the proceeds and expenditure of cash and cash equivalents in the unit that occurred during the period covered by the cash flow accounting;

Cash costs and benefits -these are the costs incurred by the entity and the revenue generated which resulted in the cash flow of expenditure or the effect of cash or cash equivalents in the unit during the period covered by the cash flow;

Operational activities -this is the principal activity of the entity and the other activities, not included in the investment (localisation) or financial activities;

Investment activities (localisation) -it is an activity the subject of which is the acquisition or disposal of tangible assets (fixed assets, fixed assets under construction), intangible assets, long-term investments, including investments in real estate and law, short-term financial assets (with the exception of cash and their equivalents) and all related cash costs and benefits, except for income tax;

Financial activities -it is an activity which is the subject of acquisition other than operating activities, sources of financing, including also increasing equity (fund), or repayment thereof, and related cash costs, including commissions, interest, and dividends, and benefits, with the exception of income tax. The occurrence of cash flows in a financial activity results in changes in the size and relationship of equity (fund) of own and debt of the entity (if the entity uses foreign sources of financing);

Parent Entity -it is a parent undertaking, a partner of a co-dependent entity or a significant investor;

Methods for the acceptance of financial data of subordinate units -this is a full consolidation method, a proportional method and a method of ownership;

Consolidated financial statements -this is the consolidated financial statements referred to in Article 4. 55 par. 1 and 3 of the Act, drawn up by the parent undertaking;

Individual financial statements -it is a financial report drawn up, in accordance with the provisions of Chapter 5 of the Act, by the entity whose financial data are covered by consolidated financial statements.

III. Cash flow and presentation

3.1. In the cash flow statement, the entity shows the cash flows that occurred during the reporting period, broken down into operational, investment and financial flows.

3.2. A single operation or event may include a variety of cash flows. In order to unify the approach, it is recommended that the monetary costs and benefits associated with a given operation or event be included in the same type of activity as the relevant event (operation) to which they relate. For example, the repayment of the foreign exchange loan covers both the repayment of the principal and the interest, the bank commission and the exchange rate differences realised. The principal amount of the loan, including the exchange rate differences realised, shall be included in each case for the financial activity flows. In this example, interest and commissions are also classified in the financial activity flows.

However, if, in accordance with point 10 of the Standard, an entity wanted interest and commissions to be included in operating flows, there is an explanation of the additional information and explanatory notes in Chapter 3 of the additional information and explanations.

3.3. Where a financial instrument is settled as collateral for a hedged item, the cash flows of that hedged item shall be included in the type of activity to which the flows of funds are or will be included. cash resulting from a hedged item. If, for any reason, a financial instrument cannot be further considered as a hedging position, the proceeds and expenses for the settlement of that instrument shall be included in the investment activity flows.

3.4. In accordance with the definition of monetary assets, such assets, payable or payable within 3 months of their receipt, issue, acquisition or assumption (deposits), are included in the cash flow statement to the funds. cash, unless it is recognised in flows from an investment activity. There may therefore be a non-conformity of the sum of net cash flows and changes in the cash state resulting from the balance sheet (pos. B. III.1.c of the assets). In this case, it is necessary, for the purpose of the cash flow account, to reclassify certain components of short-term financial assets to cash. In Section 3 of additional information and explanatory notes, the reasons for the difference between the amount of cash changeover as shown in the balance sheet and shown in the cash flow account shall be explained.

3.5. Investments in financial assets, included in the category intended for trading, which are at the same time a short payment or due date (up to 3 months from the date of their receipt, assumptions, exhibitions, acquisitions), easily the exchange for a certain amount of cash and a negligible risk of impairment shall be counted against cash equivalents in general. Expenditure on investment in shares in other units (e.g. shares), like other long-term investments, are usually shown as an element of investment activity flows.

3.6. Cash flows are not included in cash flows for their equivalents and vice versa, as such operations are the effects of the entity's day-to-day management of money by the entity, and not the element of the operating flows, to be investment or financial.

3.7. An entity may consider that, when drawing up a balance sheet, the rules for classifying short-term financial assets to cash and other monetary assets are the same as those used for the determination of cash and cash equivalents in the cash flow statement. In Section 3 of the additional information and explanations, the relevant information shall then be provided.

Method of presentation of cash flows

3.8. In accordance with the Act, the cash flow statement may be drawn up by a direct or indirect method, whereby the term 'method' refers to the presentation of financial information about the flows of operational activities rather than calculation technique leading to a specific presentation.

The data relating to the operational flows shall be presented by a direct method (cf. points 4.3-4.6) or indirect (cf. Section 4.7).

The data relating to the flows of investment and financial activities is always presented in a direct way. Therefore, concerning the investment and financial activities of the event and non-monetary operations, so that the non-effect or expense of cash or their equivalents is excluded from the cash flow account.

Examples of such excluded from the cash flow account of events and operations are:

(a) the acquisition of assets by taking over directly related liabilities or by means of financial leasing,

(b) the acquisition of an entity by means of a shareholding (shares)

(c) the receipt or transfer of a non-monetary contribution in the form of components of fixed assets and stocks,

(d) conversion of liabilities into equity (fund) and receivables into shares.

3.9. The selection of the method shall be carried out by the unit manager, taking

(a) the specificities of the business of the entity, the expectations of the users of financial information,

b) the possibility of obtaining reliable data provided by the computer system used in the unit,

(c) the possibility of developing the accounting records for obtaining the data necessary for the preparation, presentation and analysis of the cash flow statement,

(d) requirements other than the law of legislation and environmental regulations.

The choice of method gives individuals more freedom of presentation of the flow information, thus allowing for better consideration of the specificity of the activity and the possibility to establish the financial data of a given form.

The method used to draw up the cash flow account is a part of the accounting policy (s) used by the entity and requires a corresponding record in the description of these principles (cf. Paragraph 7.3.)

Net cash flow

3.10. In the cash flow statement, receipts and expenses for certain operations may be recorded in net amounts and thus compensated with each other.

In most cases, receipts and expenses require a separate demonstration, as this increases the cognitive value of the cash flow account. In the net amount, cash flows from operating, investment and financial activities may be recorded if:

(a) receipts and expenses are carried out on behalf of the counterparty and, therefore, when the cash flows reflect the activity of the customer and not the activity of the individual, although they are recorded in its revenue and cost (e.g. refunds); for example, rents for property owners and subsequently transferred to the property owners,

(b) receipts and expenditure on a given title shall be characterised by a rapid turnover, high value and short term of repayment; for example, this applies to the short-term loans with less than 3 months of payment due,

(c) the entity has a legally valid title for netting specific assets and liabilities; this applies e.g. overdraft loans, and

(d) the entity accounts for the operation in the net value of the compensated assets and liabilities (or, at the same time, such asset items are excluded from the accounts and the liability is cleared).

IV. Operational flows

4.1. Operating activity flows include, in particular, the monetary effects of those operations and events that need to be taken into account when determining the financial result (profit/loss) from the sale. Where an entity produces a specific type of product, the operating activities and expenses related to the production and sale of those products or the provision of services shall be shown in the operations. If an entity deals with a trade in goods (trade), the proceeds and expenses related to the purchase and sale of the goods shall be shown in the operations. If the entity deals with leasing, the operating activities shall include receipts and expenses related to leasing operations, including financial leasing operations. If the entity's business is trading in financial instruments, then the proceeds and expenses of that entity shall be accounted for as operating flows. If the entity has not been placed on the trading of financial instruments and traded them for cash flows, then such events, whether or not they relate to short-term trading or long-term instruments, are used to obtain cash flows. financial assets shall be shown in the cash flow statement in investment activities, unless such instruments (in the short term) are in cash equivalents.

4.2. Where an entity has defined areas of activity in which the entity is in fact acting irregularly or intermittently, the entity flows from that entity as a part of its operations, investment or financial, as appropriate to their content, in the extracted position.

4.3. The direct method in the cash flow statement consists in showing the underlying titles of the proceeds and expenses of operating activities as separate items of the cash flow account, and then summing them up to the amount of flows net cash from operating activities.

4.4. In operating activities, where its flows are presented as a direct approach, the following types of revenue and expenditure shall be demonstrated:

(a) proceeds from the sale of products, goods and materials (including tax on goods and services),

(b) receipts for royalties, copyrights, fees and other operating revenues,

(c) expenditure on payment for the goods, materials, raw materials, energy and services rendered (including the tax on goods and services) for the implementation of the unit's operating activities,

(d) expenditure on the remuneration of employees and other benefits for the benefit of workers,

(e) receipts and expenditure on social and health insurance,

(f) income tax, other taxes and charges of a public-law nature, such as those to which the provisions of the Law of 29 August 1997 apply. Tax ordination (Dz. U. of 2005 No. 8, pos. 60 ze zm.) lub proceeds z ich refunds,

(g) receipts and expenditure on contracts concluded for the acquisition and resale of financial instruments, if they are part of the entity's operating activities.

4.5. The financial information necessary for the application of the direct method can be obtained:

(a) directly, from the detailed accounting records of the cash accounts and their equivalents,

(b) indirectly-by adjusting the sales value and operating costs of changes in liabilities, receivables and stocks and other non-monetary items or those whose effect in the form of cash flows is included in the investment or financial activities.

4.6. In the case of the unit presentation of the cash flow account of the operating activities, the additional information and explanations of the arrangement require adjustment in Chapter 3 of the statement, leading to a reconciliation of the net financial result and net cash flows from operating activities. For this purpose, it is necessary to provide in Chapter 3 additional information and explanations of the net cash flow from the operating activities presented by the indirect method.

4.7. The indirect method in the cash flow account of operating activities is that the net financial result of the financial year is adjusted for positions that do not change the state of the cash or its equivalents, as well as the results of the other activities than operating and cash elements of the result, which are included in the relevant activities (investment, financial). An example of a net financial result adjustment for non-monetary operations is a non-cash contribution transferred or received in the form of stocks.

4.8. Irrespective of the type of method used, the final value of the net cash flow from operating activities remains the same, but other information shall be reported according to the acceptance of one of them.

The main advantages of using the direct method are:

(a) presentation of the structure of revenue and expenditure from operating activities,

(b) providing useful information in determining the future receipts and expenses of operating activities, which are not available when the intermediate method is applied,

(c) ease of verification in an objective manner of items and amounts of revenue and expenditure.

The main advantages of the intermediate method are:

(a) the availability of information on the relationship between the net financial result and the net cash flow from operating activities, within the same element of the financial statements, for the purposes of data analysis for past and future periods,

(b) the association of cash flow account items with balance sheet items and profit and loss accounts,

(c) the possibility-in most units-to draw up a cash flow account without any further expansion of the accounting records.

V. Flows of investment activities

5.1. The flows of investment activity include expenses and receipts incurred for the purchase (construction) or obtained from the sale by the entity of fixed assets (except for long-term accruals and long-term receivables, if they concern operating activities) and short-term investments (with the exception of cash and other monetary assets and financial assets classified as cash equivalents), as well as cash benefits and costs carrying out this activity. Investment activities therefore cover not only the receipts and expenditure relating to categories classified in the balance sheet for long-or short-term investments (with the exception of cash and other monetary assets and financial assets) classified as cash equivalents), but also those relating to fixed assets, fixed assets under construction and intangible assets.

5.2. When the cash flow statement is drawn up, it shall not be taken into account whether or not the asset in question has been purchased for operating activities or the economic benefits arising from the increase in the value of those assets. In both cases, expenditure on its purchase is included in the investment activity.

It does not appear in the cash flow account of these changes in the state of fixed assets and short-term investments that do not cause a cash flow unit (expense or impact), such as e.g. the acceptance of the completed construction or improvement of a fixed asset, the unpaid acquisition or the transfer of the stabbings in the establishment of fixed assets.

5.3. The flows of investment activities shall include, in particular, the following types of expenditure and receipts:

(a) expenditure on the purchase, assembly, commissioning of fixed assets, fixed assets under construction, intangible assets, investments in immovable property and intangible assets, as well as financial assets,

(b) proceeds from the sale of fixed assets, fixed assets under construction, intangible assets, real estate investments and intangible assets, as well as financial assets,

(c) expenditure and receipts for the granting and restitution of short and long-term loans to other units,

(d) expenditure on investment advances relating to investment activity and the proceeds from the reimbursement of such advances,

(e) expenditure and receipts in respect of derivative financial instruments,

(f) expenditure and receipts in respect of monetary costs and benefits relating to the abovementioned components of investment activity, for example: interest received on deposits received, dividends received.

5.4. An entity shall display separately the titles of receipts and expenditure on investment activities, without revenue and expenditure on the basis of which the input tax on goods and services is deductible.

5.5. Where an entity uses a direct approach to the presentation of operating flows, the proceeds and expenses of the goods and services tax relating to investment activities shall be recognised as operating flows in the contract.

5.6. In the investment activity, the repayment of liabilities and receivables in foreign currency shall be shown in conjunction with the realised differences in exchange rate.

VI. Financial activity flows

6.1. Financial activity flows include the proceeds and expenses related to both the acquisition and payment of own and foreign sources of financing, including receipts and expenses resulting in an increase or reduction in the capital (fund) of one's own, and the state of shares/shares. At the same time, they change the size and relationship of equity (fund) and debt in the entity, while debt is understood to be in debt from other titles than purchases (materials, raw materials, goods, services) linked to the business operational.

It does not appear in the cash flow account of these changes in the size and relationship of equity (the fund) of its own and foreign, which do not cause a cash flow unit, such as e.g. the debt-to-equity swap (fund) of its own.

6.2. Loans taken by the entity (loans), regardless of their purpose, are shown in financial activities as the acquisition of a foreign source of financing (impact), and their repayment as a loss of a foreign source of financing (expenditure).

The grants received, regardless of their purpose, are a non-refundable acquisition of a foreign source of funding. Grant proceeds shall be recognised in the cash flow statement as flows from operating activities, if those grants serve the entity's core operating activities (surcharges, subsidies, price subsidies, including aid measures, from the Labour Fund, grants from the Ministry of Science and Higher Education for the university). In other cases, the proceeds of the grant shall be shown as flows from financial activities. The use of grants awarded shall be shown in the cash flow account as an expenditure classified as an appropriate type of activity (operating or investment), in accordance with the purpose of the grant.

6.3. Financial activity flows shall include, in particular, the following types of revenue and expenditure:

(a) proceeds from the issue of the shares (shares) and other equity instruments, the payment of capital and the sale of the shares (shares),

(b) payments to owners of shares or shares in respect of their buy-back and reimbursement of capital payments,

(c) the proceeds from the issuance of long-and short-term debt financial instruments,

(d) the borrowing and repayments of loans (including realised differences in exchange rate),

(e) expenditure relating to the distribution of profits, including previous years,

(f) expenditure incurred by the beneficiary of the obligations under the financial leasing contracts,

(g) interest paid, bank commissions and other monetary costs (or benefits) directly linked to the acquisition of foreign capital,

h) paid dividends, payments from the profit of State-owned companies and one-person companies of the State Treasury.

6.4. In financial activities, the payment of liabilities and claims in foreign currencies shall be shown in conjunction with the realised differences in exchange rate.

VII. Unit Cash Flow Account

7.1. Chapter VII contains detailed explanations of the contents of the individual items and the way in which the cash flow statement is drawn up as provided for in Annex No. 1 to the Act. In their application, the provisions of the Act requiring the presentation of the obligation to demonstrate in the financial statements, and thus in the cash flow statement, require:

-the image of the entity's economic situation in a fair, clear and correct manner,

-the events according to their economic content,

-when simplifying the simplifications, if they do not cause an appreciable distortion of the situation of the entity presented.

7.2. The cash flow statement shall be drawn up:

(a) on the basis of the data derived from the accounts and from other elements of the financial statements in which the account is entered;

(b) in the arrangement and with the specificity provided for in Annex 1 to the Act, with:

-the entity may, according to its needs and specifics, show the information contained in the cash flow account with the majority of the non-specificity provided for in Annex No. 1 to the Act,

-if there are no events relating to individual items of the cash flow account in the unit, both in the financial year and the preceding year, the corresponding positions shall be ignored;

(c) showing data for the current and previous financial years, excluding the case where the entity is only established in the current financial year; then no comparative data shall be provided,

(d) in the case of the compilation of the cash flow account for a different reporting period than the financial year as comparative data, the data for the corresponding reporting period of the previous financial year shall be reported;

(e) in gold and groves or rounded up to thousands of zlotys; it is desirable that the account be drawn up with the same accuracy as the other elements of the financial statements, as this facilitates the comparison and analysis of figures.

7.3. The rules adopted for drawing up the cash flow account shall form part of the accounting policies adopted by the entity and shall require, in accordance with the law, the documentation and the discussion in the introduction of the financial statements.

Explanations for the cash flow statement shall be provided in Section 3 of additional information and explanations.

Once adopted, the rules for the eligibility of flows should be applied on a continuous basis, taking into account their relevance and the impact on the transfer by the cash flow account of a fair and clear picture of the financial position of the entity.

7.4. Guidance for the determination of individual cash flow items from operating operations by means of an indirect method:

Group A-Cash outflows from operating activities

Group A of the cash flow statement shall comprise cash flows relating to the operating activities and thus of the principal activity of the entity as explained in the Act and in Section 2.1 and Chapter. IV Standard.

I. Net profit (loss) -this is the net financial result shown in the profit and loss account; the net profit is recorded with a plus sign, net loss-with a minus sign.

II. Total adjustments

The adjustments are intended to result in a net financial result-as a result of a 'cash register', i.e. to the net cash flow value from operating activities. The adjustments are mainly based on:

-the exclusion of non-monetary items (e.g. depreciation, changes in the state of the reserves, the result of the investment activity),

-the exclusion of monetary income (benefits) and costs affecting the financial result, but relating to investment or financial activities (e.g. interest paid on loans, interest received on the investment, dividends received),

-taking into account changes in the state of short-term assets (stocks, receivables, accruals) and liabilities related to operating activities.

This item shall be the arithmetic sum of the adjustments included in items 1 to 10 of Part A of the cash flow statement.

1. Amortization

The adjustment, with a plus sign, includes depreciation of fixed assets and intangible assets, real estate investments, and intangible assets-as depreciation is a non-expense-non-expense cost. Cash flow (expense) is the payment of the purchase of a given asset (rather than a depreciation write-off) recognised in the cash flow statement of an investment activity during that period in which the item of expenditure is spent.

2. Profit (losses) from exchange rate differences

This adjustment shall include:

(a) to exclude the realised exchange differences between operating activities and to transfer them to the activities to which they relate and, therefore, to investment or financial activities.

Exchange-rate differences realised in progress other than operating activities shall be recorded in the cash flows of that activity to which the event relates. A correction of the financial result is therefore made (positive differences with a minus sign, negative differences with a plus sign), and then cash flows for these differences are recorded in investment or financial activity, respectively, with the mark according to the nature of the flow: positive exchange rate differences with plus sign, negative exchange differences with minus sign. The differences in question are reported in conjunction with the amount of the operation which caused them, for example. the repayment of the credit taken in the foreign currency shall be converted at the rate at the date of repayment of the undertaking and shown as expenditure in the cash flow from the financial activity;

(b) the exclusion of non-realised (accrual) exchange differences not related to operating activities, since they do not result in a change in the state of the cash and their equivalents.

No difference in exchange rate differences between investment and/or financial activities is eliminated as non-affecting cash (correction of the financial result: unrealised gains with a minus sign, not realised losses with the mark) plus). In view of the non-monetary nature of these differences, they are not taken into account in the flows of investment or financial activities;

(c) exclusion of foreign exchange differences from the valuation of cash collected on foreign exchange accounts and in the unit of the unit (positive minus, negative sign plus sign).

The valuation of cash collected in foreign exchange accounts and in the cash account has not resulted in cash flows in the period covered by the cash flow account, hence, as a non-monetary item, it is eliminated from the financial result;

(d) there is no need to correct the realised and unrealised exchange differences relating to operating activities, as:

-exchange-rate differences are affected by the change in cash flow,

-exchange-rate differences do not result in a change in the state of receivables and liabilities, and thus the subject of self-active elimination in the operational activities.

3. Hundreds and profits in profits (dividends)

This item is followed by an adjustment to the financial result and the dividends received on investment activities and interest on financial activities. Therefore:

-interest and dividends received are excluded from the financial result with a minus sign (the adjustment concerns the position of income from financial operations), and at the same time included in the cash flows of investment activity,

-interest paid is excluded from the financial result with a plus sign and then shown in the relevant positions of financial activity as an expense (in the item-"interest"),

-interest and dividends accrued, but not received or not paid, constitute an appropriate correction of the financial result with a plus or minus sign, ie. Because of their non-monetary nature, they are not included in the flows of investment or financial activity and are not included in the change in the balance of receivables or liabilities (in A. II.7 respectively, or A. II.8 of the cash flow statement). The alternative is to disregard the interest and dividends accrued but not received or not paid in the adjustment in question, but must then be shown as appropriate in the change of the balance of receivables or liabilities (under headings: A. II.7 or A. II.8 of the cash flow statement).

4. Profit (loss) from investment activity

The net profit (loss) includes the proceeds and losses from the disposal of non-financial fixed assets and investments, the liquidation of these components, and the donations of non-cash donations, surpluses and inventories, non-monetary losses and profits exceptional and value updates. These are non-monetary items, so they require an exemption from the cash flow of operating activities. The adjustments shall include in particular:

a) (a) profit, (+) loss on sales of investment activity,

(b) (+) loss on liquidation of investment activities, i.e. the net value of the liquidated ingredients,

(c) (+) the donations given to non-monetary components of investment activity,

(d) (-) included in the financial result, disclosed surpluses of investment activity components,

(e) (+) recognised as a result of the financial result, disclosed deficiencies of the inventories of investment activities,

(f) costs and revenues associated with random events, the occurrence and effects of which are foreseeable and which are related to the overall risk of business-and therefore not included in the profit or loss (plus or minus),

(g) write-offs of fixed assets and short-term financial assets for permanent impairment and their correction (plus or minus),

(h) non-monetary extraordinary losses (plus) and non-monetary emergency gains (minus) in the investment activities, unless the entity has shown them under heading A. II. 10: Other adjustments,

(i) an update on the valuation of financial assets where its effects are carried out on a financial result (e.g. the update of the value of short-term financial assets to the market value in minus-correction with a plus sign), unless the entity shows it in A. II.10: Other adjustments.

5. Change of the state of reserves

This item includes a change in the state of the liability reserves, as shown in the item. B. l balance sheet liabilities. The increase in reserves is shown with a plus sign and a reduction with a minus sign.

If there is a difference between the change in the position of that item in the cash flow statement and the corresponding change in the balance sheet, the reason for the difference is explained in Section 3 of the additional information and explanatory notes. For example, differences can be result from a change in the state of the reserves for deferred tax, if the reserve on tax was created, excluding the net financial result of the current period, on the weight of the equity (fund) of its own (on the capital (fund) from the revaluation).

6. Inventory Change -corresponds to the change in stocks shown in the item. B. l balance sheet assets

-the increase shall be shown with a minus sign and a reduction with a plus sign.

If there is a difference between the change in the balance of this item in the cash flow statement and the balance sheet, the reason for the difference is explained in Section 3 of the additional information and explanatory notes. For example, this item does not take into account e.g. changes in stocks due to non-monetary contributions received or transferred in the form of assets (stocks) or changes in stocks from their transfer to fixed assets (including under construction) or retraining of funds permanent to stock.

7. Change in receivables -corresponds to the change in the status of the claims shown in the item A. lll and B. ll the assets of the balance sheet. Receivables from the sale on the basis of purchase credit, also the due date for payment of more than one year (from the date of the establishment of the claim) shall be included in the operating activities. The increase in receivables is shown with a minus sign, and a reduction with a plus sign.

It does not take account of changes in the state of receivables on investment activities, from the sale of fixed assets or from operations and events, such as the conversion of claims on supplies and services on shares.

If there is a difference between the change in the balance of claims shown in the cash flow statement and the balance sheet, the reason for the difference is explained in Section 3 of the additional information and explanations.

8. Change in the state of short-term liabilities, except for loans and loans

The position of this item is to change the state of short-term liabilities (and special funds)-pos. B. lll of the liabilities of the balance sheet, excluding the change in the state of the liabilities on loans, loans, short-term debt securities, promissory notes and other financial liabilities towards affiliated entities and others. Purchase credits used (ie. The deferred payment obligations shall also be included in the operating obligations. The increase in commitments is shown with a plus sign, and a reduction with a minus sign.

Changes in the state of commitments relating to investment activities, financial activities (see revision A. II.3) are not taken into account either from operations or in non-monetary events, such as those of commitments or events. the conversion of liabilities relating to operating activities into equity (fund) or changes in the state of the income tax liability directly related to equity (e.g. equity capital) (e.g. error committed in previous financial years, following which the approved financial statements for the preceding periods cannot be considered to be valid-art. 54 para. 3 of the Act).

If there is a difference between the change in the position of the item shown in the cash flow statement and the balance sheet, the reason for the difference shall be explained in Section 3 of the additional information and explanations.

The change in the state of special funds shall not include, inter alia, a change in the condition caused by the write-off from the profit for the provision of the Social Benefits Fund and the declared, but not paid, rewards of profit.

9. Change of the state of accruals

The unit can be long-and-short-term:

(a) accrued expenses on the costs and liabilities of future periods (including active accruals of costs and other accrued charges) and

(b) accruals of income.

The change in the state of these accounts shall be recorded in the cash flow account of the total amount, with:

Active accounts:

* the increase in the state, indicating an increase in the commitment of cash and its equivalents-is shown with a minus sign,

* The decrease in the condition, entailing the settlement with the net financial result-without incurring the expense, shall be shown with a plus sign.

There is no change in the state of accruals, for example. changes in the accounts for deferred tax directly related to capital (fund) own funds.

Accruals of income accruing

indicates: the increase of the condition-with the plus sign, and the reduction-with a minus sign.

No changes in the clearing state of the accounts on the accounts of assets or liabilities are shown, and in particular: changes in the negative status of the company in the year of its formation, the value of non-monetary donations received in the form of components of fixed assets as well as grants-in the year of their receipt.

If there are differences between the total sum of active accruals and the accruals of accrued income shown in the cash flow statement and in the balance sheet, the reasons for the difference shall be explained in Section 3 of the additional accounts. information and explanatory notes.

10. Other corrections

This item is different from the previously discussed adjustments to the net financial result (item). 1-9) for operations or non-monetary events relating to operational activities, including:

-non-monetary emergency losses in the components of the investment activity (plus), if they are not included in revision A. II.4,

-non-monetary emergency gains in the components of investment activities (minus), if they have not been included in revision A. II.4,

-an update on the valuation of financial assets if its effects are carried out on a financial result (e.g. the update of the value of short-term financial assets to the market value in minus-correction with a plus sign), unless the entity shows it in item A. II.4 of the flow account.

-grants in the year of their receipt, if they have been completely, without the accrual of accruals of accrued income, abolished for the financial result of the current period (minus),

-remission of borrowings, loans and other financial liabilities (minus),

-remission of loans granted (plus).

III. Net cash flow from operating activities (l ± ll)

In this item, the difference between the net financial result of the unit (A. l) and the sum of adjustments (A. ll) is shown. This amount reflects the capacity of the entity, in the period covered by the account, to generate surplus (or shortfall) of cash from operating activities.

7.5. Guidance for the determination of individual cash flow items from operating operations by means of direct operations:

Group A. Cash flow from operating activities -cover individual titles of receipts and expenditure relating to operating activities, i.e. the basic activity of the entity, as explained in the Act and in points 6 and 17 to 20 of the Standard and, in addition, their total amounts. The relevant data shall be the result of an analysis of the accounts on which the trading of funds and their equivalents is recorded.

I. Wp Lifts

1. Sales

This item includes receipts and thus an effective payment for the sale of goods, goods, services and materials, as well as the advance payments received from those titles. These receipts shall be demonstrated in conjunction with the share of the goods and services tax due. Where an entity supplies goods or provides services exempted from tax or taxed at a zero rate of tax on goods and services, then it shall show the proceeds of the amount received.

2. Other proceeds from operating activities

This item is different from the sales of goods, goods, services and materials related to operating activities, e.g. receipts for royalties, copyrights, fees, received on payment of receivables due to the operating activities, interest received from bank deposits submitted for up to and including 3 months, as well as tax receipts from the goods and services from investment activities, and receipts from direct tax return on goods and services received from the Tax Office or from abroad.

II. Expenditure

1. Delivery and Services

This item shall include expenditure on the purchase of materials, raw materials, energy, goods, foreign services and advances against those purchases, including the input tax on goods and services. Where an entity purchases goods or provides services exempted from tax or taxed at a zero rate of tax on goods and services, then it shall show expenditure in the amount paid.

2. Net remuneration

This item shows expenditure on wages and salaries for work, including work and order contracts, agency contracts and advances on wages paid in money-less the social security contributions charged by employees, tax income and other deductions.

3. Social and health insurance and other benefits

This item shall include, in particular, the social and health insurance contributions transferred to the ZUS account. The Labour Fund, the Guaranteed Employee Benefits Fund, covered by both the employees and the employer, as well as the payment of other cash benefits to the employees.

4. Taxes and public-law charges

This item is used to demonstrate the payment of taxes, duties and fees to which the Tax Ordinance applies, such as income tax on legal and natural persons, excise duty, real estate, transport and other local, expenditure on tax fees, civil-law tax, perpetual usucaption of land, protection the environment, product, on behalf of PFRON.

It is not recognised in this position of social and health insurance, tax on goods and services (with the exception of VAT payments made to the Tax Office) and payments made from profit.

5. Other operating expenditure

This item shows expenditure not included in items 1 to 4, such as expenditure on business travel, expenditure on interest on arrears from obligations relating to operating activities, penalties, deposit payments, insurance in kind and personal, notarial fees, litigations, lump sums for the use of private vehicles in business purposes, post-accident compensation, allowances payable in the weight of insurance, post-mortem checks, equivalents paid to employees on clothing, tools, payment of leave benefits, when the entity does not create a ZFŚS, donations of cash, and the outstanding advances paid, the expenditure in respect of the tax on goods and services from investment activities.

III. Net cash flow from operating activities (I - II) -shall constitute the difference between the receipts (A. l) and the expenditure (A. ll) of the cash and their equivalents relating to operating activities. This amount reflects the capacity of the unit, in the period covered by the account, to generate the surplus (or shortfall) of cash from operating activities.

7.6. Guidance for the determination of individual items of investment activity receipts and expenditure:

Group B. Cash flows from investment activities

In Group B of the cash flow account, the proceeds and expenses and the net cash flow of the investment activity of the current period are shown, applying the explanations provided in the Act and in Section 2.1 and the Chapter. V Standard.

I. Wp Lifts

1. Dispute of intangible assets and property, tangible assets

This item shows the proceeds from the sale of intangible assets and items of tangible assets, without tax on goods and services.

This item does not qualify as a refund of advances for the purchase of intangible assets and tangible fixed assets; the repayment of advances shall be shown under heading 4 'Other investment inflows'.

2. Dispute of real estate investments and intangible assets

This item includes the proceeds from the sale of immovable property and the intangible assets that are eligible for investment. These receipts shall be provided without tax on goods and services.

3. From financial assets, including:

(a) in associated undertakings, this is the units corresponding to the definition contained in the Act, with the exception of the disposal of shares/shares in the parent undertaking, since they are treated as shares/own shares (art. 362 § 4 Ksh. If these impacts are relevant, it is recommended to divide this item according to the point of point. (b)

(b) in other units in respect of:

- disposing of an asset Financial this is the impact from the sale of long-and short-term financial assets, such as e.g. of shares and shares of foreign entities, securities and other financial assets which have not been included in cash equivalents,

- dividends and udzia In profits other entities, including the receipts of advances received on dividends,

- sp łata granted long-term loans, this is the proceeds of the repayment of loans granted for a period of more than one year (from the date on which they were granted),

- Interest -cover the interest income received by the entity from loans granted, from deposits and other cash benefits from the entity holding the financial assets, with the exception of the receipts shown under "Dividends and profit-taking". It is appropriate to include only interest on cash investments for a period of more than 3 months. Interest on investments made for a shorter period shall be included in the operating activities,

- Other wp Financial assets -include receipts from financial assets, not shown in previous positions.

4. Other investment receipts -cover all the proceeds of investment activities and not included in earlier positions of the flows from that activity. These are e.g. proceeds from the lease of investment in immovable property, from sales other than financial assets of short-term investments, repayment of advances granted for the purchase of investment activity components, the proceeds of cash from the acquisition of another units, repayment of the short term loan granted.

II. Expenditure

1. Acquisition of intangible assets and tangible fixed assets

This item shows expenditure on the acquisition of non-material and tangible assets and tangible assets, but without deducting the input tax on goods and services. This item includes all expenses for the purchase, including tax on civil-law activities, which is not deductible by excise duty and on goods and services, notarial fees. These explanations shall apply mutatis mutandis. 2 and 3 expenditure of investment activity.

The items are not included in the advance payment for the purchase of intangible assets and tangible fixed assets; they are included under heading 4 'Other investment expenditure'.

However, if the amount of the advance is significant, the probability of actual acquisition of the large and the short-to-be-due date can be shown in the item on the acquisition of the entity's assets. Such fact requires the disclosure in heading 3 of additional information and explanations together with the amount of the advance and the due date of the purchase.

2. Investments in immovable property and intangible assets

This item provides for expenses incurred in the acquisition of real estate and intangible assets, which are included in the investment, without a tax on goods and services.

The rules for the statement of cash flows of advances for the purchase of intangible assets included in the point. 1 shall apply mutatis mutandis.

If an entity builds a building or a building that is included in an investment, the related expenditure shall be shown in the item. 1. The devotion of a building or building to use is not reflected in the cash flow statement.

3. On financial assets, including:

a) in associated entities -that is the units corresponding to the definition contained in the Article. 3 para. 1 point 43 of the Act, with the exception of shares and shares of the parent entity. If the expenditure is relevant, it is recommended that this item be allocated according to the point. (b)

(b) in other units in respect of:

- acquisition of an asset Financial -this is the disbursement of funds for the acquisition of shares and shares of other entities, securities and other financial assets not counted in cash equivalents,

- grant after long-term benches for more than one year (from the date on which they are granted).

4. Other investment expenditure -include expenditure on investment activities not included in the items previously discussed, such as: Short-term loans, expenditure on purchases other than financial assets of short-term investments or advances for the purchase of tangible assets, intangible assets or real estate investments, as well as expenditure on related assets the sale of tangible fixed assets and real estate investments that are chargeable to the entity.

III. Net cash flow from investment activities (I - II)

This item is the difference between the receipts (B. l) and the expenditure (B. ll) of the cash and their equivalents relating to the investment activity. It specifies:

-the amount of investment expenditure which the entity has not been able to cover with the proceeds of that activity (negative value) or

-the amount of the excess investment inflows remaining after the payment of the expenditure of that activity (positive value).

7.7. Guidance for the determination of individual items of revenue and expenditure of financial activities:

Group C. Cash flow from financial activities

In Group C of the cash flow account, the proceeds and expenses are recorded and the net cash flow value of the current period of financial activity is reported using the explanations provided in the Act and in Section 2.1 and the Chapter. VI Standard.

I. Receipts

1. Net outflows from the issue of shares (share issue) and other equity instruments and capital payments

This item has an effective influence on the increase in equity capital (fund) by issuing shares (share issuance) and other equity instruments, even if there has not yet been a registration of a capital increase (fund) in the the court register and the proceeds from the subsidy to that capital (the fund), after a reduction of the expenses incurred in connection with the issuance of the shares (shares). Such receipts shall be demonstrated in conjunction with other emission impacts (e.g. interest). This item also shows the proceeds from the sale of its own shares and treated with them on an equal share (shares) of the parent undertaking.

If an entity has incurred expenses for the cost of the issue in a given period and no proceeds from the issue of shares (shares) have occurred, such expenditure shall be shown in item 9: 'Other financial expenditure'.

This item does not include an increase in the equity (fund) of one's own from the title:

-declare the purchase of shares, however, without payment of the payment (the payment of the payments in the following or subsequent periods shall be shown in this item of account as an impact),

-contribution of non-cash contributions,

-revaluations of the components of fixed assets,

-loss of profit in the unit, e.g. by way of capital injection.

2. Credits and loans

Receipts shall be entered in the title received:

(a) long-and short-term loans, and used both for the purpose of operating and investment activities,

(b) long-and short-term loans (jw.).

The use of credit in the current account and in the credit line is shown in the cash flow account "per saldo".

If a bank has deducted a commission and a portion of interest at the disposal of the bank at the disposal of the bank, then the sum of the effectively used credit will be reduced accordingly.

3. Issuing of debt securities

This item provides the proceeds from the issuance by the entity of own bonds, other debt securities and equity instruments, both long and short-term.

The proceeds shall be shown after they have been reduced by the expenditure associated with the issue.

4. Other financial influences

It is shown here concerning the financial activities of the proceeds, not included in items 1 to 3, such as: the receipts from the grants received (see p. 25 standard).

II. Expenditure

1. Acquisition of own shares (shares)

This item includes expenditure arising from a reduction in capital arising from the buy-back of shares or shares, including those treated with them on equal shares and shares of the parent undertaking, irrespective of the purpose of redemption (redemption, resale, acquisition of another) units) and reimbursement of payments to capital.

2. Dividends and other payments to the owners

This item shows expenses due to the payment of dividends from profit, including the advance payment, the share in profit and the payment from the profit of the State and one-person companies of the State Treasury.

3. Other than payments to owners, expenditure on distribution of profits

This item includes, among others, payment of prizes from profit, payment of royalties and expenses from profit for other purposes (eg. social).

4. repayment of loans and loans

This item shall show expenditure on the repayment of the installment of the capital (net of interest and commissions):

(a) long-and short-term loans,

(b) long-and short-term loans.

Overdrafts and credit lines-as indicated-are recognised in the 'per saldo' cash flow account.

The repayment of loans and loans taken in foreign currency shall be shown in conjunction with the realised differences in exchange rate (both positive and negative).

5. Buyout of debt securities

This item includes expenditure on the buyout issued by the entity's own bonds, other debt securities and the settlement of equity instruments, both long and short-term, without interest.

6. From the title of other financial obligations

Expenditure on the repayment of financial liabilities not included in items 1 to 5 and 7 and 8 of the flows from this activity shall be shown here, such as, for example, the financial obligations not covered by the terms of the budget. expenditure on exitions of bills of a different nature than the operating system.

7. Payment of commitments under financial leasing contracts

The item is used to show the expenditure on the repayment of the financial leasing obligations, that is to be an equity installment, without interest or commissions, which is shown under item C. II.8. The repayment of debt in foreign currencies shall be shown in conjunction with the realised differences in exchange rate (both positive and negative).

8. Hundreds

This item provides the amount of interest paid on borrowings, loans, debt securities and financial leasing obligations, as well as bank fees paid, additional fees if they concern activities financial.

9. Other financial expenses

This item shall show expenditure relating to financial activities not covered by the aforementioned items, e.g. expenditure in respect of commitments caused by the granting of financial guarantees, or expenditure on emission costs, where there has not yet been an effect on the issue of shares (shares).

III. Net cash flow from financial activities (I - II)

This item is the difference between the receipts (C. l) and the expenditure (C. II) of the financial activity units. It determines the amount of surpluses to pay (or vice versa) of own and foreign sources of financing and the amount of expenditure to support sources of financing.

7.8. The D-G positions of the cash flow account, illustrate the effect of cash flows on state of cash and their equivalents and their conformity with the balance sheet.

D. Net cash flow, together (A. III + /-B. III + /-C. III)

This item shows the amount of net cash flows from the entire business of the entity during the period covered by the report. It consists of net flows (±):

-from operating activities-A. lll,

-from the investment activity-B. lll,

-from financial activities-C. III.

The amount shown in this item should be equal to the change in cash position, calculated as the difference in cash balance at the end of the current period and the cash position at the end of the previous period as defined by the Act (Art. 3 para. 1 point 25).

E. Balance sheet change of cash,

of which

- change of cash flow due to exchange rate differences

This item is transferred from the item to the item. B. lll.1.c balance sheet difference between the cash situation at the beginning and end of the reporting period.

If the content of the item 'cash' in the cash flow account and the balance sheet is the same, items D and E are identical. In case the content of the item 'cash' for the cash flow and balance sheet account is different or in the case of an occurrence in the entity at the end of the period covered by the statement of exchange differences from the cash collected at foreign exchange accounts and in the cats, positions D and E differ. There is a need to explain these differences in the section 3 for additional information and explanations.

Information on the impact of the change in cash condition made the difference in exchange rate differences fixed at the balance sheet date (at the beginning and end of the period) on cash in foreign currencies collected in foreign exchange accounts and in the cash coke, is a clue as to how the amounts have increased or decreased, which will become real cash only when the cash is in cash.

F. Cash for the beginning of the period

It is a state of cash for the beginning of the reporting period accepted into the cash flow statement. If the content of this item, including cash and cash equivalents, is the same as that assumed in the balance sheet and does not change the cash flow due to currency differences, then the balance sheet is the same as the amount of the cash flow that is assumed to be the same as the cash flow. this corresponds to the beginning of the period shown in the balance sheet under asset item B. lll.1.c 'Cash and other cash assets'.

G. Cash at the end of the period (F + /-D), including

- with limited disposition

This is the state of cash at the end of the reporting period accepted into the cash flow statement. If the content of that item, as referred to above, is the same in the cash flow and balance sheet accounts, that state corresponds to the final item shown under balance sheet B. lll.1.c: 'Cash and other cash assets' after the adjustment for the change in state cash on exchange rate differences, if such correction took place. Other differences between these state changes may occur in particular for the reclassification of the components of short-term financial assets to cash, for the purpose of the cash flow statement, in accordance with art. 3 para. 1 point 25 of the Act.

Cash which an entity may dispose of only to a limited extent (although it is in its possession) is a means which cannot be used freely by it. This justifies the statement in the cash flow statement of the amounts blocked on the bank accounts (e.g. in order to secure the operations, the blockade to secure loans or other financial contracts), the funds of the Welfare Benefit Fund, the Establishment Rehabilitation Fund of Persons with Disabilities, Accreditation or received from the title a planned tendering security, taking into account the principle of relevance.

The contract shall be deemed to be in cash at the disposal of which it is limited to a maximum of 3 months from the date of the balance sheet date.

The incompatibility of the sum of D + F items with the amount shown in G indicates that an error has been made in the cash flow statement and the validation of the account is necessary.

Additional information and explanatory notes to the cash flow statement

7.9. Annex No 1 to the Act sets out a minimum range of additional information and explanations to the cash flow statement. They shall include in particular:

(a) an explanation of the amount of cash accepted in the cash flow statement, if different from the scope of the cash flow statement, when drawing up the balance sheet,

(b) the reconciliation of the net cash flows of operating activities determined by the direct method with the net cash flows of the activity determined by the indirect method, when the entity is drawn up by the cash flow account direct operations,

(c) explanation of the reasons for the significant differences between the changes in the balance of certain balance sheet items and the changes in the same positions shown in the cash flow statement

7.10. Presentation of additional information and explanations to the cash flow statement:

(a) it shall facilitate the proper reading and interpretation of the amounts shown in the various headings of the report, in particular where the value of the item deviates from the accounts shown in the other elements of the accounts,

(b) allows for the "offload" of the cash flow account and the elimination of positions less relevant from the point of view of the primary purpose of drawing up that account,

(c) extend the possibility of comparisons useful in estimating the value and probability of cash flows in the future.

7.11. Examples of "additional information and explanations" elements in the cash flow statement:

1. Change of the balance of short-term liabilities by balance sheet	XX
+/-change of investment commitments	XX
+/-a change in the state of the income tax liability directly related to equity (fund)	XX
Change in cash flow statement	XX
2. Change of stock balance according to the balance sheet XX
+/-a change in the state of the cash contribution received/transferred in the form of financial assets (stocks)	XX
Change in cash flow statement	XX
3. In view of not showing as a separate item of the cash flow account of the operating activities, the amount of income tax paid by legal persons is recommended-when it constitutes an important position-an explanation of the relations between accrual (in the profit and loss account) and the spot income tax (income tax paid), e.g. by schema:
(a) Income tax as shown in the profit and loss account	XX
+/-change in the state of the reserve on income tax (without reserves for equity capital)	XX
+/-change in accruals of income tax accruals (without clearing for equity)	XX
(b) Income tax according to the tax return-the financial result of the period in question	XX
+/-income tax according to the tax return paid directly to equity	XX
(c) Income tax on declaration	XX
+/-Change in the state of the income tax receivable	XX
+/-a change in the state of the liability for income tax	XX
(d) Income tax paid	XX

7.12. In Section 3 of additional information and explanations, an entity shall provide the cash flow statement adopted in the cash flow account and its equivalents for the beginning and end of the reporting period. If the cash flow in the balance sheet and the cash flow statement differ, in addition, the description requires a difference in the range of cash components shown in the cash flow statement and the corresponding amounts in the balance sheet.

VIII. Consolidated statement of cash flows

8.1. The chapter explains the rules for the compilation of the consolidated cash flow statement (hereinafter referred to as the consolidated account) providing the minimum information, as set out in Annex No. 4 to the Regulation of the Minister of Finance of 25 September 2009 on detailed rules for the drawing up of consolidated financial statements by entities other than banks, insurance undertakings and reinsurance undertakings of the consolidated accounts of capital groups (Dz. U. Nr. 169, pos. 1327), hereinafter referred to as the Regulation of Consolidations.

8.2. This chapter refers to the units associated with the entity, group of capital, parent company, partner of the co-dependent entity, significant investor, subsidiaries, subsidiary, subsidiary, entity the associated consolidation, consolidation method, full consolidation method, proportional method, the method of ownership, control or co-control exercise, significant influence, shall be understood by the relevant relationships and entities referred to in Article 3 para. 1 of the Act.

The relevant rules, applicable to the preparation and presentation of the consolidated cash flow account, shall also apply in the event that the joint-subsidiary or a significant investor is drawn up by the partner.

8.3. The consolidated account shall be understood to be the account drawn up by the parent undertaking which takes into account the cash flows of the capital group entities or, respectively, of the partner of the co-dependent entity and of the co-dependent entities, when the latter shall be covered by a proportionate method. It includes the financial data of the units of the capital group, the partner of the joint-subsidiary or the significant investor and the units subordinated to them by a full, method-proportional and/or ownership method. Where an additional cash flow account is drawn up by the parent undertaking in which the subordinated units concerned are recognised only by the use of a proportional method or equity method, such financial statements it cannot be called a consolidated financial statement, so that its cash flow statement cannot be named as a consolidated account. However, to distinguish it from a single cash flow account, it is recommended to give it the appropriate name to identify the nature of the account. An explanation of the nature of the additional financial statements made shall be made in the implementation of the financial statements drawn up.

8.4. The way in which the consolidated account is drawn up shall be governed by the provisions of § 1 and 2 of the Regulation on consolidation. According to them, a consolidated account may be drawn up in two ways:

(a) on the basis of the consolidated balance sheet and the consolidated profit and loss account and the additional explanatory notes and information (§ 16 (1) (a)) 1 point 1 of the Consolidation Regulation).

(b) by summing up the corresponding items of the cash flow accounts of the parent undertaking and the units subject to the full or proportional consolidation method and making the consolidation adjustments (§ 16 (1)). 1 point 2 of the Consolidation Regulation).

In both ways, the consolidated account of the cash flow of operating activities can be drawn up by both the direct and indirect methods; however, for practical reasons it is not recommended to draw up a consolidated account. using a direct approach to this approach, as referred to under (a).

8.5. The use of each of the approaches indicated in point 8.4 should lead to the demonstration in the consolidated account of the same qualitatively and value-added items. The amount of the net general cash flows, as shown in the consolidated account, under the item "Net cash flows, together" shall be equal to the amount of the net cash flows of the parent and its subsidiaries, whose data are included in the consolidated financial statements by a full and percentage part of the net cash flows of those co-dependent entities whose financial data are included in the consolidated financial statements of the method Proportional and recalculated in the percentage of the following consolidating in the consolidated balance sheet and consolidated profit and loss account. The above-mentioned method does not apply when the number of subordinated units, the data covered by a full or proportional method, has been completed within the period for which the consolidated account of the change is drawn up (under control or co-control, or, as appropriate, only the subordinated entity from the consolidation or the use of the proportional method). The specific principle of drawing up a consolidated account should the first time or its exclusion from the consolidated account be included in the consolidated account in paragraph 8.16 of this chapter.

8.6. The essence of the approach referred to in point 8.4.a) is to draw up a consolidated account for a capital group (units subordinated to the joint-subsidiaries or to a significant investor respectively) in such a way as if it were consolidated the account was drawn up independently of the unit accounts compiled using the methods and techniques referred to in the Standard, and so as if it were drawn up for all units whose financial data are covered by the consolidated financial statements, drawn up in such a way as if the group The capital was one reporting entity. The principles set out in paragraphs 8.8., 8.9. and 8.11. -8.15. this chapter shall apply mutatis mutandis.

8.7. The nature of the approach referred to in point 8.4.b) is to draw up a consolidated account of a given group (units subordinated to the joint-subsidiaries or to a significant investor respectively) in such a way as to this report was the sum of the individual items of the parent's accounts and its subsidiaries and its subsidiaries. The financial data of these units are included in the consolidated financial statements by the consolidation method of the full and percentage items of the individual unit items of the accounts of those co-dependent entities to which the financial data are included in the the consolidated financial statements by means of a pro rata method, calculated as set out in point 8.5, taking into account the appropriate adjustments of the cash flows (mainly operating activities) resulting from the consolidated coverage financial statements of financial data subordinated property rights. The principles set out in paragraphs 8.8. and 8.10. -8.15. This chapter shall apply mutatis mutandis.

8.8. Corrections referred to in point. 8.4.b) consist of excluding any cash flow between the consolidated account covered: the parent undertaking and its subsidiaries, and between individual subsidiaries, in particular as follows:

(a) payment of dividends in the context of the distribution of the financial results of units of a group which, for the dividend paying the dividend (usually the subsidiary which makes the contribution to the parent undertaking), is the expenditure shown in the Financial activity flows, and for the dividend entity (usually the parent undertaking) is an impact, shown in the flows of investment activity,

(b) the inclusion of shares in a capital group entity which, for the enclosing shares (usually the parent undertaking), is an expense of the investment activity, and for the issuing entity (usually the entity) (usually the entity) dependent)-the influence shown in the financial activity (see See also paragraph 8.17. Chapter),

(c) the use and repayments of loans (loans) which constitute expenditure for the lending entity, as shown in the investment activity, and the borrowing entity shall be influenced by the financial activity. The repayment of loans (as a percentage as the amount of the loan) is accounted for by analogy, i.e. the amounts transferred represent an appropriate impact of the cash flow of investment activities and of the expenditure of the financial activities.

8.9. In the case of compiling a consolidated account on the basis of the consolidated balance sheet and the consolidated profit and loss account, the approach referred to in point 8.4.a. (a) to (c) of point 8.8. cash flows shall not be taken into account. attention, since the corresponding balance sheet values and the corresponding revenues and costs from these operations have already been eliminated.

8.10. If applicable for the preparation of the consolidated account of the approach referred to in point 8.4.b), the cash flows indicated in point (s). 8.8. and others shall be eliminated by exemption from the relevant activities of expenditure and revenue respectively.

For example, a cash flow from a loan granted by a parent entity of a subsidiary is shown in the unit account of the parent as an investment in investment activity, whereas in a separate account the subsidiary-as an impact of the cash flow of financial activities. In order to eliminate from the consolidated internal account (intercompany) cash flows that are not to be reported (subject to point 8.9), items covering the expenses of the loan granted shall be adjust the amount of the flow shown in the investment activity and the same amount to adjust the position of the proceeds from the borrowing of the cash flow. This does not preclude appropriate, parallel adjustments of a similar nature of operating cash flows, consisting in the elimination of revenues and costs linked to a given and borrowed loan in the event of a the drawing up of the consolidated account and, where the notes are drawn up, an explanatory note explaining the cash flows of the operating activities in the consolidated account drawn up by the direct method.

8.11. If the parent company includes in the consolidated financial statements the data of the subordinated entities only by the equity method, the consolidated net cash flows of the entities associated with the entity and consisting of them the net cash flows of the various activities (operating, investment and financial) are derived directly from the unit cash flow account drawn up by that parent undertaking and shall be equal to the corresponding flows of flows. The net monetary value shown in this account shall be used. Therefore, it is recommended that this account be drawn up in accordance with the approach referred to in point 8.4.b), since in the case of the drawing up of a consolidated account:

(a) the direct method-all the items relating to each activity shall correspond directly to the positions shown in the unit account of the parent undertaking,

(b) by means of an indirect method, the sole title of consolidation adjustments in the consolidated account, irrespective of the size and type of the capital, financial and investment transactions between the units covered by that report, is the elimination of the the impact of the use of the equity method on the structure of the cash flow of operating activities. This applies in particular to the adjustment of the proportion of the parent undertaking in the financial result of the subsidiary (cf. point 8.14.d) and correction of the write-off of the value of the company (positive or negative), affecting the consolidated financial result (cf. point 8.14.b). If, on the basis of the Article 28 para. 1 point 4 of the Act the parent entity shall apply to the valuation and listing in the accounts and separate financial statements of the shares in all subordinated units covered by the consolidated financial statements the rights method properties, then no adjustment of operating cash flows is needed-the items and amounts recognised and shown in the unit cash flow account correspond to the items and to the amounts that are recognised and shown in the the consolidated account.

8.12. Taking into account the principle of materiality, as well as balancing the costs and benefits of drawing up the consolidated account, in particular by the sum of the individual items of the accounts, it is permissible to abolish the cash flow the following between the units of the capital group where, when drawing up the consolidated balance sheet and the consolidated profit and loss account, such movements are deemed irrelevant.

It is not possible to waive the exclusions of these internal cash flows which were the subject of elimination when drawing up the consolidated balance sheet and the consolidated statement of flows of profit and loss.

For example, if a consolidated balance sheet has been eliminated on a consolidated balance sheet, the parent and the subsidiary are eliminated at the balance sheet date, in the consolidated account drawn up by the parent undertaking. by means of an indirect way of aggregation of unit accounts, those accounts should be excluded from the scope of the consolidated balance sheet. In this way, the change of settlement in the period affecting changes in the capital group's financial capital corresponds to the changes in the settlement of the group units with its environment, and not including the changes in the settlement of the units between each other.

8.13. The general principle of the compilation of the consolidated business flows account is the adjustment of the financial result (net profit/loss) of the reporting entity (group of capital or otherwise related) in the balance sheet. units) as per the shareholders of the parent undertaking, in order to determine the net cash flows of that activity. In other words, the accrual-based net financial result of the reporting entity is driven by the result of the cash operating activity, i.e. net cash flows of this activity.

However, if the consolidated account is drawn up on the basis of the sum of the unit accounts of the units forming part of the capital group, taking into account the financial data of those subordinated entities, which are included in the equity method (point 8.4.b), in the drawing up of this account must first lead to the cumulative compatibility of the financial result of the parent undertaking and of the subsidiaries covered by a full and proportional financial result (if they are consolidated pro rata method) with financial result (net profit/loss) to be shown in the consolidated balance sheet. For this purpose, appropriate adjustments and elimination of the financial result shall be made, which shall be irrelevant for the determination of the consolidated financial result in the consolidated balance sheet and the consolidated profit and loss account. If the parent undertaking, when drawing up its consolidated financial statements, includes the financial data of the subordinated entities exclusively by the equity method, the financial result is consistent with the unit financial result.

The fundamental elements and principles for the adjustment and elimination of the consolidated financial result are presented in the following points.

8.14. The most common financial result of the parent entity and the units of the capital group whose consolidated data are either a full or a proportional method is subject to adjustments to the following:

(a) the rights of minority shareholders to the part of the net financial results of the subsidiaries, which are included in the full consolidation method. In this case, the sum of the minority's shares in the financial results of the subsidiaries adjusts the consolidated financial result accordingly; the adjustment is of an accrual nature; therefore, at the same time, a parallel record of the amount of the adjustment in the appropriate for the cash flows of the item: profit (loss) of minorities;

(b) the debiting of the consolidated financial result of the instalment of the instalment or the entire value of the company acquired (or the acquired negative goodwill) of the subsidiaries. In this case, the total write-off of the goodwill (positive and negative) corrects the consolidated financial result accordingly; the adjustment is also a accrual nature; therefore, at the same time, a parallel record of the amount of the adjustment in the correct one for the displayed in the cash flows of the operating activities of depreciation (settlement) items, which are distinct in the positions of the company's write-downs, write-downs of the negative goodwill. This applies to both positive and negative write-off of the company, which is formed on the subject of the full consolidation method, and the proportional method. In the case of the use of the property rights method, the write-downs or negative values of the company shall be accounted for and recorded together with the share in profits (losses) of the units valued by the property rights method (as referred to in point (a)). (d)

(c) the elimination of activated gains and losses on transactions made between entities covered by consolidated accounts. In the case of entities whose data are consolidated by a full or proportionate method, the adjustment, except for the correct correction of the consolidated financial result, shall be subject to a change in stocks if the profit or loss is affected by the value of those stocks. Where the gains or losses affect the value of the components of the fixed assets, the item is adjusted accordingly: the result from the investment activity (in the case of the sale of fixed assets) or the change in stocks (in the case of a sale of assets) fixed assets for the seller of products or goods) and, where appropriate, the item of other operating adjustments, taking into account appropriate adjustments, concerning the adjusted amount of any depreciation allowances. In connection with the elimination of the profit or loss on transactions between the units of the capital group, the interim difference from the deferred tax is created. This usually causes (if relevant) to create and include tax assets (at elimination of profits) or tax reserves (with the elimination of losses on external sales, subject to prudential rules). These operations also result in a revision of the net financial results, so that the impact of these accruals on positions, shown in flows, is necessary in order to draw up the consolidated account of the memorandum of understanding. Operating cash. Similarly, in subsequent periods for which a further consolidated account is drawn up, the inclusion of profits or losses in that period previously deducted from the consolidated financial result makes it necessary to reverse the previously recognised profit or loss account assets or provisions on deferred tax due to the resulting transitional differences. As a result, the consolidated net financial result is adjusted, which also results in the corresponding inclusion of the settled assets or tax provisions in the consolidated account, the accruals of which should be eliminated accordingly.

(d) the participation in the financial results of the subordinated units covered by the equity method. The effect of the accrual accrual of the adjustment of the financial result of the parent entity in order to bring it to the amount of the consolidated financial result neutralises in the cash flow of the operating activities the recording in the item: profit (loss) of shares (shares) in units valued by the equity method; it is not intentional to exclude the write-off of the company's value (negative goodwill) from this correction and separate its elimination;

e) the elimination of dividends, obtained from affiliated entities, covered by consolidated financial statements, and it is both those dividends that are obtained by the parent entity from the subsidiaries and those which are due to other units subordinated in the case of capital ties between them, as long as the valuation of shares in the accounting books of those units (in accordance with the provisions of art. 28 para. 1 pt. 4 of the Act) does not follow the method of property rights. The recording eliminates the effect of dividends on the consolidated financial result follows in correspondence with the item: shares in the profits of dividends in the amount of dividends charged by the entities included in the consolidated financial statements. Dividends paid out, i.e. those dividends which result in an appropriate cash flow between those units of the group whose financial data are included in the consolidated financial statements by means of a full consolidation method or In addition, the pro-rata and parent companies also require elimination from cash flows of financial activities, dividends and other payments to owners (expenses with a positive sign) and cash flows of business investment, item: receipts from financial assets (from dividends) with a mark Negative. The dividends obtained by minority shareholders are shown as expenditure in cash flows of investment activity, dividends and other shareholdings in profits paid to minority shareholders;

(f) accrued interest on loans (loans) received from other units of the capital group, covered by consolidated accounts, which did not affect all or part of the costs of the period in which they were charged (increase in value) fixed assets or rotary assets). In such a case, the result from the investment activity in plus (in the case of interest increasing the value of fixed assets) or the change in stocks (in the case of stocks activated in stocks) and, where appropriate, the change in stocks is adjusted accordingly. item: other operating adjustments, taking into account relevant adjustments, on the adjusted amount of any depreciation write-off. Interest paid, i.e. interest, that causes the corresponding cash flow between those units of the group whose financial data are included in the consolidated financial statements by means of a full consolidation or method In addition, the following shall be eliminated from the cash flow of financial activities, the item: expenditure on interest (with a positive sign) and from the cash flow of investment activities, item: proceeds from assets financial (interest) with a negative sign;

(g) the difference between the valuation of the book value and the fair value of the net assets of those subsidiaries, which are included in the consolidated financial statements by a full or proportional method, and which are accounted for during a given period of time, constituted of the establishment and settlement of a capital association on the date of the formation of the subordination relationship or, in justified cases, of its strengthening in respect of the acquisition of additional shares.

For example, if the difference in the depreciation of a fixed asset is positive, then the additional (from the valuation difference) depreciation of the asset for the period in question is debited from the consolidated financial result; the impact of this operation on the flows the net cash of the operating activity is neutralised in the position: depreciation with a positive sign;

(h) income tax as adopted and applied in the preparation of the consolidated financial statement of the concept of deferred tax, resulting in the creation and demonstration of supplementary financial statements in the consolidated financial statements assets or provisions for deferred tax. In such a case, the position of the change in the state of accruals or changes in the state of reserves shall be subject to the elimination of the elimination of the consolidated financial result on the net cash flow of the activity, as appropriate. 1.

8.15. The elimination of mutual accounts shall be the basis for the other titles of the consolidating revisions of the consolidated account drawn up by way of the aggregation by way of the individual items of the unit accounts of the capital group. The amounts of the eliminated accounts should be consistent, hence the elimination does not result in changes in the net cash flow of the operating activities, but should be affected accordingly in the cash flow of the operating activities. the amount of the item 'change of balance' and the position of 'change in liability'.

8.16. In the case of a consolidated account being drawn up for the first time or, if it is to be covered by another subsidiary by a full (proportional proportional method), its cash flows shall be accounted for as from the date of entry into control of the control (co-control). The state of cash of the newly included subsidiary (the co-dependent entity, as appropriate) at the date of the control (co-control) under it is subject to an exemption and corrects the item of expenditure of the parent undertaking, shown in the cash flow of investment activities. A similar rule applies to an exemption from the consolidated account of a subsidiary (co-subsidiary) over which control (control) is lost, e.g. by divestment of its shares. The consolidated account covers only the flows of that subsidiary (the co-subsidiary) which it has reached until the date of the loss of control (co-control). At that time, the cash of such a subsidiary (as appropriate: the percentage of the proportion of the joint-dependent units covered so far) at the date of the loss of control (co-control) less the proceeds from the divestment (if any) shares of this entity ^x) .

8.17. In the case of the issuance of equity instruments by the subsidiary, the data of which are included in the consolidated account using the full and additional shares in the consolidated account by the units of the capital group in the form of monetary expenses (disbursement cash or cash equivalents), in the consolidated account of the exemption shall be subject to the amount of expenditure (adjustment of investment activity expenditure) on the volume and funds received from the issue of equity capital (shares or shares). Cash received from minority shareholders ' contributions shall not be excluded but are recorded in a separate position of the consolidated account of the cash flows of the financial activity, other than the share of the issue of the issue of the shares (issue) shares) and other equity instruments and capital payments. Included in the settlement of equity issuance of financial revenue or financial cost (in accordance with the provision of art. 60 par. 4 of the Act), affecting the position of the net financial result in the consolidated account drawn up by the intermediary, is eliminated in the cash flows of the operating activity by the inclusion of the adjustment in the position: Other corrections, unless eliminated amount is significant. This adjustment shall then be shown in a separate item. The explanations given above shall also apply mutatis mutandis to the issue of equity instruments by the co-dependent entity, whose data in the consolidated financial statements shall be covered by a proportional method.

IX. Numeric examples

Example No 1-Cash flow account in a unit other than a bank and an insurance undertaking

The example illustrates how the standard method of drawing up and presenting a cash flow account by an entity other than a bank or an insurance undertaking in a standardised manner is discussed in the Standard. Its aim is to approximate the principles set out in the Standards and to assist in the practical explanation of their being.

In the example (except for the balance sheet), only data on the reporting period (financial year) is given. The corresponding data for the previous year shall be presented in accordance with the provisions of the Act.

The sample also contains reference information to show how the cash flow statement is drawn up.

Due to the illustrative nature of the example, a number of simplifications were introduced: among others: in the VAT settlement, as well as the omission of certain specifications in the balance sheet, e.g. inventories, cash. All figures are expressed in zloty.

^x) For example, if for the acquisition of all shares in a subsidiary of Z, which took place on 1 July 2009. It had to be spent 100 jp. and a subsidiary of Z on the date of the audit had 15 jp. cash, and:

(a) the net cash flow of the parent company D was in the whole of 2009. 300 jp., with the state of its measures on 1 January and 31 December 2009. It was 200 jp, respectively. and 500 jp., while

(b) the cash flows of the subsidiary Z during the period 1 July 2009. -31 December 2009 amounted to 120 jp., with the state of its measures on 1 July and 31 December 2009. Respectively: 15 jp. and 135 jp.,

then the consolidated net flows of the Group D and Z for 2009 are then consolidated. amounted to 435 jp., as the cash position was on 1 January 2009. was 200 jp. (only the parent company D) and the cash position at the end of 2009. amounted to 635 jp.: the cash of the parent company D plus the cash of the subsidiary Z: 500 + 135). Although the total unit net cash flow of companies D and Z is 420 jp. (300 + 120), this is the adjustment of investment spending by 15 jp. (in the amount of the company's funds Z as at the date of its audit) it results in the inclusion of the net consolidated cash flow in the appropriate amount of 435 jp. (420 + 15).

Balance sheet of the Ative Company "ALFA" at 31.12.20XX

in PLN
			Item Content	Reporting year-or	Change State	Previous year
1	2	3	4	5	6	7
			Assets
A.			Fixed assets	838.300	190.500	647.800
	I.		Intangible assets	73.000	5.700	67.300
		1.	Costs of completed development	-	-	-
		2.	Goodwill	-	-	-
		3.	Other intangible assets	73.000	5.700	67.300
		4.	Advances on intangible assets	-	-	-
	II.		Tangible fixed assets	693.300	132.300	561.000
		1.	Permanent measures	367.300	6.300	361.000
			(a) land (including the right to use perpetual land)	15.000	-	15.000
			(b) buildings, premises and facilities of civil engineering	55.300	(34.700)	90.000
			(c) technical equipment and machinery	227.000	17.000	210.000
			d) means of transport	70.000	24.000	46.000
			(e) other fixed assets	-	-	-
		2.	Fixed assets under construction	306.000	106.000	200.000
		3.	Advances on fixed assets under construction	20.000	20.000	-
	III.		Long-term claims	-	-	-
		1.	From Associated Units	-	-	-
		2.	From other units	-	-	-
	IV.		Long-term investments	72.000	52.500	19.500
		1.	Real estate	-	-	-
		2.	Intangible assets	-	-	-
		3.	Long-term financial assets	72.000	52.500	19.500
			(a) in associated undertakings	-	-	-
			(b) in other units	72.000	52.500	19.500
			-shares or shares	57.000	45.000	12.000
			-other securities	10.000	2.500	7.500
			-loans granted	5.000	5.000	-
			-other long-term financial assets	-	-	-
		4.	Other long-term investments	-	-	-
	V.		Long-term accruals	-	-	-

1	2	3	4	5	6	7
B.			Current assets	1.145.800	885.800	260.000
	1.		Stocks	218.500	170.000	48.500
	II.		Short-term receivables	258.000	115.000	143.000
		1.	Receivables from associated entities	-	-	-
		2.	Receivables from other units	258.000	115.000	143.000
			(a) in respect of supplies and services, of a repayment period:	207.200	129.000	78.200
			-up to 12 months	207.200	129.000	78.200
			-over 12 months	-	-	-
			(b) in respect of taxes, grants, duties, social and health insurance and other benefits	4.800	(60.000)	64.800
			c) others	46.000	46.000	-
			(d) by means of judicial proceedings	-	-	-
	III.		Short-term investments	667.500	599.000	68.500
		1.	Short-term financial assets	667.500	599.000	68.500
			(a) in associated undertakings	-	-	-
			(b) in other units	417.400	381.400	36.000
			-shares or shares	384.500	375.000	9.500
			-other securities	10.900	6.400	4.500
			-loans granted	-	-
			-other short-term financial assets	22.000	-	22.000
			(c) Cash and other monetary assets	250.100	217.600	32.500
		2.	Other short-term investments	-	-	-
	IV.		Short-term Accruals	1.800	1.800	-
			Total assets	1.984.100	1.076.300	907.800
			Liabilities
A.			Equity	1.137.300	465.000	672.300
	I.		Core capital	906.700	332.000	574.700
	II.		Payments due on core capital (negative amount)	(30.000)	(30.000)	-
	III.		Owned shares (negative size)	-	-	-
	IV.		Backup capital	188.600	157.000	31.600
	V.		Revaluation capital	2.900	-	2.900
	VI.		Other reserve capital	5.100	-	5.100
	VII.		Profit (loss) from previous years	-	(4.000)	4.000
	VIII.		Net profit (loss)	64.000	10.000	54.000
	IX.		Write-offs from net profit during the financial year (negative amount)	-	-	-

1	2	3	4	5	6	7
B.			Commitments and provisions for commitments	846.800	611.300	235.500
	I.		Provisions for liabilities	36.000	29.000	7.000
		1.	Deferred tax reserve	6.000	6.000	-
		2.	Provision for pensions and similar provisions	16.000	9.000	7.000
			-long term	16.000	9.000	7.000
			-short term	-	-	-
		3.	Other reserves	14.000	14.000	-
			-long term	-	-	-
			-short-term	14.000	14.000	-
	II.		Long-term liabilities	192.000	118.000	74.000
		1.	Related to associated entities	-	-	-
		2.	Towards other units	192.000	118.000	74.000
			(a) loans	186.800	122.800	64.000
			(b) in the form of debt securities issued	-	-	-
			(c) other financial commitments	-	-	-
			d) other	5.200	(4.800)	10.000
	III.		Short-term liabilities	612.000	457.500	154.500
		1.	Related to associated entities	-	-	-
		2.	Towards other units	570.000	451.000	119.000
			(a) loans	167.000	110.000	57.000
			(b) in the form of debt securities issued	-	-	-
			(c) other financial commitments	-	-	-
			(d) in respect of supplies and services, of a period of due:	168.000	135.000	33.000
			-up to 12 months	168.000	135.000	33.000
			-over 12 months	-	-	-
			(e) advances received for supplies	-	-	-
			(f) promissory notes	-	-	-
			(g) in respect of taxes, duties, insurance and other benefits	11.200	(1.000)	12.200
			(h) remuneration	1.000	(2,800)	3.800
			i) others	222.800	209.800	13.000
		3.	Special funds	42.000	6.500	35.500
	IV.		Accruals	6.800	6.800	-
		1.	Negative Company Value	-	-	-
		2.	Other accruals	6.800	6.800	-
			Total liabilities	1.984.100	1.076.300	907.800

Profit and loss account of the Ative "ALFA" for the year 20XX

in PLN
		Item Content	Reporting year
1	2	3	4
A.		Net revenue from the sale of products, goods and materials, including:	900.000
	I.	Net revenue from sales of products	900.000
	II.	Net income from sales of goods and materials	-
B.		Costs of products, goods and materials sold	400.000
	I.	Cost of manufacturing of products sold	400.000
	II.	Value of goods and materials sold	-
C.		Gross profit (loss) from sales (A-B)	500.000
D.		Sales costs	50.000
E.		Costs of the general management	200.000
F.		Profit (loss) from sales (C-D-E)	250.000
G.		Other operating income	35.000
	I.	Gain from disposals of non-financial fixed assets	23.000
	II.	Grants	-
	III.	Other operating income	12.000
H.		Other operating costs	174.000
	I.	Loss from disposals of non-financial fixed assets	-
	II.	Update of the value of non-financial assets	-
	III.	Other operating costs	174.000
I.		Profit (loss) from operating activities (F + G-H)	111.000
J.		Financial income	63.000
	I.	Dividends and profit shares	17.000
	II.	Interest	8.000
	III.	Proceeds from disposals of investments	21.000
	IV.	Update Investment Values	1.700
	V.	Other	15.300
K.		Financial costs	59.000
	I.	Interest, including:	50.000
		-for associated entities	-
	II.	Loss on disposal of investments	-
	III.	Update Investment Values	-
	IV.	Other	9.000
L.		Profit (loss) from business activity (I + J-K)	115.000

1	2	3	4
M.		Result of extraordinary events (M.l.-M. ll.)	(19.000)
	I.	Windgains	-
	II.	Extraordinary losses	19.000
N.		Gross profit (loss) (L +/-M)	96.000
O.		Income Tax	32.000
P.		Other compulsory profit reductions (increase in loss)	-
R.		Net Profit (Loss) (N-O-P)	64.000

Information about events that occurred in the year of the reporting year to assist in preparing the cash flow statement

Note:

1. in order to facilitate the calculation of the value for the acquisition and sale of investment activities, the value added tax was contractually agreed to the operating flows,

2. for the sake of simplification, it was assumed that at the end of the previous year there were no differences in the balance sheet valuation of cash denominated in foreign currencies accumulated in the foreign exchange accounts and in the cash of cash

in PLN
Seq.	Heading	Data for the reference year
1	2	3
1.	Machine sold:
	net value	44.000
	sale for cash (cf. Paragraph 22)	67.000
	result on sale	23.000
2.	Non-monetary donations transferred in the form of devices (net value) (cf. Paragraph 22)	16.000
3.	Disclosure during the inventory of a fixed asset (cf. Paragraph 22)	9.000
4.	Dividends received (gross)	17.000
5.	Accrued and received interest from deposits over a period of more than three months	2.000
6.	Profit on the sale of short-term investments:
	carrying amount	25.000
	sale price (impact)	46.000
	result on sale	21.000
7.	Accrued and paid interest on the activities of:
	Operational	35.400
	financial (from loans)	13.000
	financial (from the financial lease-cf. paragraph 34)	1.600
8.	As a result of the difficult to predict event of random destruction, the building (uninsured) has been destroyed-net value (cf. Paragraph 23)	19.000
9.	Change of state (growth) of active, short-term accruals	1.800

1	2	3
10.	Increase in reserves:
	from deferred tax	6.000
	on pensions and similar benefits	9.000
	other	14.000
11.	Breakdown of the financial result (4.000 from previous years + 54,000 from last year = 58.000):
	dividend payout (gross)	16.000
	Prize yields (gross)	20.000
	enlargement of the capital reserve	17.000
	Copy to ZFŚS	5.000
12.	Increase in the capital of the Company "ALFA"; issue of own shares; general value of shares in the issue price of 450,000, including:
	300.000-core capital (nominal value),
	140.000-spare capital-agio (reduced by the cost of the issuance of 10,000) due to the payment for the taken shares of 30.000.
	Receipts from emissions	410.000
13.	Long-term loans:
	Receipts	200.000
	Repayment (foreign exchange loan) 60.000 (according to the course at the date of the haul) and 9,000 (negative exchange rate differences realised)	69.000
14.	Short-term loans:
	Receipts	140.000
	Current account credit per balance (beginning of fiscal year 1.200, end of financial year 7.200)	6.000
	Repayment (foreign exchange loan): 36.000 (according to the course at the date of incurrence) and 6.000 (positive exchange rate differences realised)	30.000
15.	Change in cash flow from exchange rate differences (positive differences)	4.100
16.	Change of state (growth) of accruals of accrued income	6.800
17.	Amortisation of fixed assets and intangible assets for the financial year	80.000
18.	Intangible assets:
	Purchase (for cash)	12.000
19.	Fixed assets under construction:
	Acquisitions (accrual records)	140.000
	Payment	40.000
20.	Advances for the construction of fixed assets	20.000
21.	Means of transport:
	Purchase (for cash)	35.000

1	2	3
22.	Machinery and equipment:
	Sales (net value) (cf. Point 1	44.000
	Disclosure (cf. Point 3	9.000
	Donations transferred (cf. Point 2)	16.000
	Acquisitions (accrual records)	130.000
	Payment	70.000
	Contribution of non-monetary contributions (cf. Paragraph 30)	15.000
23.	Buildings:
	Destruction of the building-net value (cf. Point 8)	19.000
24.	Acquisition of short-term financial assets (expenditure)	4.700
25.	Acquisition of shares in another entity (expenditure)	30.000
26.	Acquisition of 3-year Treasury bonds (expenditure)	2.500
27.	Granting a long-term loan to another entity (4 years)	5.000
28.	Acquisition of shares of other entities for commercial purposes	400.000
29.	The "ALFA" Company has contributed a non-monetary contribution in the form of assets of working assets (stocks)	20.000
30.	The company "ALFA" has covered the shares of another unit in non-monetary contributions in the form of fixed assets (cf. Paragraph 22)	15.000
31.	Conversion of long-term borrowing into own shares	12.000
32.	Waiver of long-term borrowing	5.200
33.	Update of the carrying amount of short-term investments, in plus, to market value	1.700
34.	Repayment of the financial leasing capital instalment	4.800
	Repayment of interest and leases (cf. Point 7	1.600
35.	Write-off of fixed assets under construction that did not give an economic effect	34.000
36.	End-of-year State of cash blocked on account for a period of more than three months, as collateral for the loan and the funds of the ZFŚS	60.000

Statement of cash flows of the Ative Company "ALFA" for the year 20XX
Direct Method

in PLN
			Item Content	Data for the reference year
1	2	3	4	5
A.			Cash flow from operating activities
	I.		Receipts	918.800
		1.	Sales	892.000
		2.	Other operating income	26.800

1	2	3	4	5
	II.		Expenditure	819.700
		1.	Supplies and services	279.000
		2.	Net wages	202.800
		3.	Social and health insurance and other benefits	106.000
		4.	Taxes and charges of a public-law nature	108.000
		5.	Other operating expenditure	123.900
	III.		Net cash flow from operating activities (I + /-II)	99.100
B.			Cash flow from investment activities
	I.		Receipts	132.000
		1.	Divestment of intangible assets and tangible fixed assets	67.000
		2.	Disposal of investments in immovable property and intangible assets	-
		3.	Of financial assets, including:	65.000
			(a) in associated undertakings	-
			(b) in other units	65.000
			-divestment of financial assets	46.000
			-dividends and shares in profits	17.000
			-repayment of long-term loans granted	-
			-interest	2.000
			-other receipts from financial assets	-
		4.	Other investment receipts	-
	II.		Expenditure	619.200
		1.	Acquisition of intangible assets and tangible fixed assets	157.000
		2.	Investments in immovable property and intangible assets	-
		3.	For financial assets, including:	442.200
			(a) in associated undertakings	-
			(b) in other units	442.200
			-acquisition of financial assets	437.200
			-long-term loans granted	5.000
		4.	Other investment expenditure	20.000
	III.		Net cash flow from investment activities (l-ll)	(487.200)
C.			Cash flow from financial activities
	I.		Receipts	756.000
		1.	Net proceeds from the issue of shares (share issue) and other equity instruments and of capital payments	410.000

1	2	3	4	5
		2.	Loans	346.000
		3.	Debt securities issued	-
		4.	Other financial receipts	-
	II.		Expenditure	154.400
		1.	Acquisition of own shares (shares)	-
		2.	Dividends and other payments to owners	16.000
		3.	Other than payments to owners, expenditure on distribution of profits	20.000
		4.	Repayment of loans and loans	99.000
		5.	Repurchase of debt securities	-
		6.	For other financial obligations	-
		7.	Payments of commitments under the financial leasing contracts	4.800
		8.	Interest	14.600
		9.	Other financial expenditure	-
	III.		Net cash flow from financial activities (I-II)	601.600
D.			Net cash flow together (A. III + /-B. III + /-C. III)	213.500
E.			Balance sheet change of cash, including:	217.600
			-change in cash from exchange rate differences	4.100
F.			Cash for the beginning of the period	32.500
G.			Cash at the end of the period (F + /-D), including:	246.000
			-With Limited Disposal	60.000

Cash flow statement
Intermediate method

in PLN
			Item Content	Reporting year
1	2	3	4	5
A.			Cash flow from operating activities
	I.		Net profit (loss)	64.000
	II.		Total adjustments	35.100
		1.	Depreciation	80.000
		2.	Gains (losses) for exchange rate differences	(1.100)
		3.	Interest and profit shares (dividends)	(4.400)
		4.	Profit (loss) from investment activity	14.300
		5.	Change of reserves	29.000
		6.	Inventory Change	(150.000)

1	2	3	4	5
		7.	Change in receivables	(115.000)
		8.	Change in the state of short-term liabilities, with the exception of loans and loans	182.500
		9.	Change of accruals of accruals	5.000
		10.	Other adjustments	(5.200)
	III.		Net cash flow from operating activities (I + /-II)	99.100
B.			Cash flow from investment activities
	I.		Receipts	132.000
		1.	Divestment of intangible assets and tangible fixed assets	67.000
		2.	Disposal of investments in immovable property and intangible assets	-
		3.	Of financial assets, including:	65.000
			(a) in associated undertakings	-
			(b) in other units	65.000
			-divestment of financial assets	46.000
			-dividends and shares in profits	17.000
			-repayment of long-term loans granted	-
			-interest	2.000
			-other receipts from financial assets	-
		4.	Other investment receipts	-
	II.		Expenditure	619.200
		1.	Acquisition of intangible assets and tangible fixed assets	157.000
		2.	Investments in immovable property and intangible assets	-
		3.	For financial assets, including:	442.200
			(a) in associated undertakings	-
			(b) in other units	442.200
			-acquisition of financial assets	437.200
			-long-term loans granted	5.000
		4.	Other investment expenditure	20.000
	III.		Net cash flow from investment activities (I-lI)	(487.200)
C.			Cash flow from financial activities
	I.		Receipts	756.000
		1.	Net proceeds from the issue of shares (share issue) and other equity instruments and of capital payments	410.000
		2.	Loans	346.000
		3.	Debt securities issued	-

1	2	3	4	5
		4.	Other financial receipts	-
	II.		Expenditure	154.400
		1.	Acquisition of own shares (shares)	-
		2.	Dividends and other payments to owners	16.000
		3.	Other than payments to owners, expenditure on distribution of profits	20.000
		4.	Repayment of loans and loans	99.000
		5.	Repurchase of debt securities	-
		6.	For other financial obligations	-
		7.	Payments of commitments under the financial leasing contracts	4.800
		8.	Interest	14.600
		9.	Other financial expenditure	-
	III.		Net cash flow from financial activities (l-ll)	601.600
D.			Net cash flow together (A. III + /-B. III + /-C. HI)	213.500
E.			Balance sheet change of cash, including:	217.600
			-change in cash from exchange rate differences	4.100
F.			Cash for the beginning of the period	32.500
G.			Cash at the end of the period (F + /-D), including:	246.000
			-With Limited Disposal	60.000

Explanatory notes to the example (in PLN)

Direct Method

The data was taken directly from the accountancy records.

I.	Receipts	918.800
	1. Sales
	680.000-proceeds from sales
	152.000-VAT on operating activities (impact)
	60.000-receipts of other claims (tax, customs, insurance)
	Total:	892.000
	2. Other proceeds from operating activities
	14.000-proceeds from the VAT on investment activities
	6.000-accrued interest and receiv-related receivapplicable
	6.800-other receipts (see change in accruals of accruals of income)
	Total:	26.800
II.	Expenditure	819.700
	1. Delivery and Services
	239.000-expenditure on consumption of materials and energy and foreign services
	40.000-VAT on operating activities (expenditure)
	Total:	279.000
	2. Net remuneration
	200.000-current period wages (expenditure)
	2.800 Arrears paid (expenditure)
	Total:	202.800
	3. Social and health insurance and other benefits
	106.000-imposed on remuneration and payments of other benefits (expenditure)
	Total:	106.000
	4. Taxes and public-law charges
	25.000-income tax paid (expenditure)
	78.000-VAT-Clearance with the Tax Office (expenditure)
	5.000-other payments for taxes and fees (expenditure)
	Total:	108.000
	5. Other operating expenditure
	7.000-penalties and fines (expenditure)
	8.000-interest rate (expense)
	35.400 interest accrued and paid for operating activities, business trips, etc.
	11.000-VAT on investment activities (expenditure)
	14000-payments for other operating liabilities
	48.500-loans granted to staff from the ZFŚS
	Total:	123.900
III.	Net cash flow from operating activities (I-II)
	Receipts 918.800 minus expenses 819.700	99.100

Intermediate method

In brackets, inclined, fat The print information of the information contained in the work materials is given to the sample.

Group A-Cash outflows from operating activities

I.	Net profit (loss)
	Item R of the profit and loss account		64.000
II.	Total adjustments
	Total corrections by A. II.1 to A.ll.10		35.100
	1. Depreciation together (17)		80.000
	2. Profit (losses) from exchange rate differences
	negative exchange rate differences (13)		9.000
	positive exchange-rate differences (14)		6.000
	positive unrealised exchange rate differences (15)		(4.100)
	total adjustment		(1.100)
	3. Hundreds and profits in profits (dividends)
	dividends received (4)		(17.000)
	interest received (5)		(2.000)
	accrued interest paid on loans (7)		13.000
	accrued interest and leases paid (34)		1.600
	total adjustment		(4.400)
	4. Profit (loss) from investment activity
	profit on machine sales (1)		(23.000)
	non-monetary donations transferred (2)		16.000
	permanent disclosure (3)		(9.000)
	Return on disposal of investments (6)		(21.000)
	the net value of the destroyed building (8)		19.0000
	Update the value of the short-term investment (33)		(1.700)
	writing the value of fixed assets under construction which have not given an economic effect (35)		34.000
	total adjustment		14.300
	5. Change of the state of reserves
	changing the state together-growth (10)		29.000
	6. Change of stock
	Balance Balance		(170.000)
	plus
	the adjustment for the non-monetary contribution received (29)		+ 20,000
	total adjustment		(150.000)
	7. Change of receivables status
	changing together		(115.000)
	8. Change in the state of short-term liabilities, except for loans and loans
	change of commitment state
	(without special funds)-growth		341.000
	minus
	adjustment for the increase in commitments
	Investment (19, 22)		(160.000)
	changing the state in the cash flow statement		181.000
	changing the state of special funds-growth		6.500
	minus
	adjustment for write-off from profit on ZFŚS (11)		(5.000)
	changing the state in the cash flow statement		1.500
	together change the state of the obligations and special funds	181.000 + 1.500 = 182.500
	9. Change of the state of accruals
	increase in accruals of active employment (9)		(1.800)
	accrual of accrued income (16)		6.800
	total change in accruals		5.000
	10. Other corrections
	adjustments to the net financial result from the title:
	-Redemption of the loan (32)		(5.200)
	total adjustment:		(5.200)
III.	Net cash flow from operating activities
	net profit		64.000
	total adjustments		35.100
	total		99.100

Group B-Cash flow from investment activities

I.	Receipts	132.000
	1. Dispute of intangible assets and property, tangible assets
	machine sales (1)	67.000
	3. From financial assets (in other units),	65.000
	of which:
	-divestment of financial assets
	impact on sales of investments (6)	46.000
	-dividends and shares in profits
	Gross dividends received (4)	17.000
	-interest
	effect on interest on bank deposits over three months (5)	2.000
II.	Expenditure	619.200
	1. Acquisition of intangible assets and tangible fixed assets
	expenditure on acquisition:
	intangible assets (18)	12.000
	fixed assets under construction (19)	40.000
	means of transport (21)	35.000
	machines and equipment (22)	70.000
	total	157.000
	3. On financial assets (in other units),	442.200
	of which:
	-acquisition of financial assets
	expenditure on acquisition:
	short-term financial assets (24)	4.700
	shares in foreign units (25)	30.000
	3-year Treasury bonds (26)	2.500
	Other business units-for commercial purposes (28)	400.000
	total	437.200
	-long-term loans granted
	a 4-year loan granted to another unit (27)	5.000
	4. Other investment expenditure
	Investment advances paid (20)	20.000
III.	Net cash flow from investment activities (l-ll)
	Total impacts	132.000
	minus	619.200
	total expenditure	(487.200)

C. Cash-flow from Financial Activity

I.	Impacts:	756.000
	1. Net outflows from the issue of shares (share issue) and other equity instruments and capital payments
	issue of the shares of the Company "ALFA":
	the total emission value of the issue price:
	(12) 450,000 minus cost of emissions 10.000 =	440.000
	minus
	accrues due to original own funds (12)	30.000
	Total emissions from emissions	410.000
	2. Credits and loans
	long-term loan (13)	200.000
	current account credit (per saldo) (14)	6.000
	Borrowing of short-term credit (14)	140.000
	total receipts for loans and loans	346.000
II.	Expenditure:	154.400
	2. Dividends and other payments to the owners
	dividend payout (11)	16.000
	3. Other than payments to owners, expenditure on distribution of profits
	payment of prizes from profit (11)	20.000
	4. repayment of loans and loans
	Expenditure on repayment:
	long-term credit
	(including italic differences) (13)	69.000
	short-term credit
	(including italic differences) (14)	30.000
	total	99.000
	7. Payment of commitments under financial leasing contracts
	expenditure on the repayment of the financial leasing capital instalment (34)	4.800
	8. Hundreds
	accrued interest and commissions:
	from credits (7)	13.000
	from financial leases (34)	1.600
	total	14.600
III.	Net cash flow from financial activities (l-ll)
	Total impacts	756.000
	minus	154.400
	total expenditure	601.600
D. Net cash flows, together (A. III + B. III + C. III)
	net cash flow from activities:	213.500
	Operational (A. III)	99.100
	Investment (B. lll)	(487.200)
	financial (C. III)	601.600
E. Balance Sheet change of cash		217.600
	of which:
	-change in cash from exchange rate differences	4.100
F. Cash at the beginning of the period		32.500
G. Cash at end of period (F + D)		246.000
	of which:
	-With Limited Disposal (36)	60.000

Example No 2-Consolidating cash flow accounts by means of an intermediary on the basis of unit accounts

Assumptions

1. The parent company D holds 80% of shares in the subsidiary of Z and 30% of shares in the associate S.

2. Company D shall measure shares in subordinated units at the purchase price.

3. The financial data of the subsidiary Z are included in the consolidated financial statements by the full method, and the company's data by means of property rights.

4. Shares in the Z company were acquired in 200X-2 for the price of PLN 272,400; the book value of the net assets was PLN 150,000; they had cover in the share capital equal to 100.000 PLN and a stock of equal to 50,000 PLN. However, the fair value of the administrative building with the remaining 10-year period of use at the date of the audit was higher by PLN 50.000 from its carrying amount, shown in the company D's financial statements, drawn up for that day.

5. The company's value of Z in the amount of PLN 120.000 (272.400-80% x [ 150.000 + 50.000-19% x 50,000 zł]) is settled in equal instalment for four years. By January 1, 200X, half of the company's company's value has already been written off.

6. Unit cash flow accounts of companies D and Z as at the date of preparation of the consolidated report, which is 31 December 200X year, presents table 3.

7. The data of S are covered by the equity method (cf. For this reason, the following information is sufficient; in the settlement of the purchase price of 30% of the shares of PLN 70,000, a negative value of the company was created in the amount of PLN 50.000; until January 1, 200X the amount of PLN 20.000 has already been written off. The net assets of S from the day of acquisition of shares by 1 January 200X year increased by PLN 250,000 and as of 1 January 200X year amount to PLN 650,000. For the purposes of this example, the fair values of the net assets at the date of the start of the significant impact on S did not materially differ from the carrying amounts.

The other important for the preparation of the consolidated financial account, together with their description, shall contain Tables 1 and 2. In Table 2, the number in bold in parentheses shows the assumptions points to the example and the assumptions in Table 1.

Table 1

Selected financial data on events and operations in companies D, Z and S in 200X year

Seq.	Financial data and facts for 200X year	Zł
8.	Net financial result (Profit) of D for 200X year	300.000
9.	Net financial result (Profit) of Z company for 200X year	150.000
10.	Net financial result (Profit) of S for 200X years	100.000
11.	Annual amount of the write-off of the company Z	30.000
12.	The annual amount of the negative value of the company S	10.000
13.	Additional annual depreciation of fixed assets (administrative building) from the difference between the fair value and the standard value of the acquisition of shares	5.000
14.	Balance of unrealised gains on transactions between Company D and Z, contained in the final collapse of products located in the company Z	15.000
15.	Balance of unrealised gains on transactions between Z and D, contained in the final collapse of goods located in company D	20.000
16.	Spotka D awarded in 200X to the company from the short-term loan for current expenses. The loan until the end of the year has not been repaid	500.000
17.	Accrued and paid interest on the loan obtained	120.000
18.	Accrued and paid dividend from the profit of Z for the year 200X-1	50.000
19.	Accrued and paid dividend from the profit of the company S for the year 200X-1	40.000
20.	Balance of current receivables of D company in Z company on 1.01.200X	310.000
21.	Balance of current receivables of D company in the company Z at 31.12.200X year	250.000
22.	Balance of current receivables of Z company in D company on 1.01.200X	70.000
23.	Balance of current receivables of Z company in D company on 31.01.200X	150.000
24.	The company Z within the year increased the core capital, which was placed in proportion to the shares held and paid in cash	400.000

Table 2

Determination of total and consolidated financial result for 200X year

Seq.	Elements of the financial result of companies D, Z and S	Zł
1	2	3
25.	Financial result of D (8)	300.000
26.	The financial result of Z (9)	150.000
27.	Total score of D and Z companies (300.000 + 150,000 zł)	450.000
28.	Balance of unrealised gains on transactions between companies D and Z (14) Tax assets for the elimination of profits on intra-group sales	(15.000) 2.850
29.	Balance of unrealised gains on transactions between Z and D companies (15) Tax assets for the elimination of profits on intra-group sales	(20.000) 3.800
30.	Additional annual depreciation of fixed assets (13) Settlement of the part of the reserve to be deferred for the revaluation of assets	(5.000) 950
31.	Annual copy of the value of the company Z (11)	(30.000)
32.	Annual copy of the negative value of company S (12)	10.000
33.	Accrued and paid dividend from the profit of Z (50.000 x 80%) (18)	(40.000)
34.	Accrued and paid dividend from the profit of the company S (40.000 x 30%) (19)	(12.000)
35.	Share in the profit of the associated company S (30% x 100.000 zł) (10)	30.000
36.	Minority interests in profit of the Z company (20% x [ 150.000-5.000 + 19% x 5.000-20.000 + 19% x 20.000 zł]) (9)	(25.950)

1	2	3
37.	Consolidated financial result of D, Z and S companies ( * )	349.650
38.	Difference between result total D i Z a consolidated result (450.000-349,650 zł)	(100.350)

(*) In the solution of the example, it was assumed that the valuation of shares in company S by the equity method, despite the fact that the transitional difference from the point of view of deferred tax does not include an appropriate reserve for deferred tax. The case referred to in point was used here. 16,8 (b) KSR 2 "Income tax".

The amount of PLN 100.350 of the difference between the total result of companies included in the consolidation by the full method and the result of the consolidated capital group should be introduced as a total consolidation adjustment to the consolidation documentation, so that the consolidated the account, drawn up by an indirect method on the basis of the consolidated accounts of D and Z companies, has been consistent with the consolidated profit and loss account of the Group D and Z group and of the associated company S, in conjunction with the individual correction of the result the financial allocation of individual cash flows. However, individual revisions of the financial result, affecting the consolidated financial result, should be carried out separately, as is the case with the consolidation of profit and loss accounts. It is appropriate to use a similar approach to these balance sheet items adjustments, which also affect the adjustment of cash flows.

The eliminations of the individual items in the consolidated account shall include a 1 in which the positive (+) and negative (-) mark has the corresponding effect of the adjustment of the item on the cash flow. The numbers shown in brackets correspond to the assumptions position for the example and the enumerations made on their basis in Table 2. The bold, italic number with the letter corresponds to the standard point and explains the accepted way of the elimination of the elimination.

Diagram 1. SRPP Eliminations	Points State- Dard	(+)	(-)
(a) Annual copy of the value of Z's company (11, 31)	(8.14 b)
Write-down of goodwill		30.000
Net profit			30.000
(b) Additional annual depreciation from fixed assets (13, 30)	(8. 14 g)
Depreciation (fixed assets)		5.000
Net profit			5.000
(c) Solution of part of the reserve to deferred tax on the difference in valuation of the building of D (b)	(8. 14 h)
Net profit		950
Change of reserves			950
(d) Elimination of the balance of unrealised gains on transactions between companies D and Z (14, 15, 28, 29)	(8. 14 (c)
Net profit			35.000
Changing the state of products and goods (stocks)		35.000
(e) Income tax adjustments for the elimination of profits on transactions between companies D and Z (14, 15, 28, 29) or (d)	(8. 14 h)
Net profit		6.650
Change in accruals of accruals (2.850 + 3.800)			6.650
(f) Transfer of cash loan to Z (16)	(8.8 c)
Expenditure on financial assets (loans granted)		500.00
(Cash flows of investment activities)
Proceeds from loans and loans			500.000
(Cash flows of financial activities)
(g) Elimination of interest on loan granted to Z (17)	(8.14. f)
Interest expenditure		120.00
(Cash flows of financial activities)
Receipts from financial assets (of interest)			120.000
(Cash flows of investment activities)

(h) Elimination of dividends due from Z company (18,33)	(8. 14 e)
Net profit			40.000
Interest and profit shares (dividends)		40.000
(Cash flow of operating activities)
(i) Elimination of Dividends paid by Z company (18, 33)	(8. 8 (a)
Dividends and other payments to owners		50.000
(Cash flows of financial activities)
Receipts from financial assets (from dividends)			40.000
(Cash flows of investment activities)
Dividends paid to minority shareholders			10.000
(Cash flows of investment activities)
(j) Elimination of dividends received from S (19, 34)	(8. 14 e)
Net profit			12.000
Interest and profit shares (dividends)		12.000
(Cash flow of operating activities)
(k) The recognition of the effects of the elimination of mutual settlement of D and Z companies (20, 21, 22, 23)	(8.15)
Change in short-term receivables		20.000
Change in the state of short-term liabilities			20.000
(l) Shares in the profits of the associated company S (10, 12, 32, 35)	(8. 14 d)
Net profit		40.000
Profit (loss) of shares in units cleared by the equity method			40.000
(Cash flow of operating activities)
(m) Shares in the profit of the company Z due to minority shareholders (9, 13, 15)	(8.14 a)
Net profit (20% x (150.000-5.000 + 19% x 5.000-20.000 + 19% x 20.000 PLN))			25.950
Minority profits		25.950
(Cash flow of operating activities)
(n) Settlement of the capital increase of Z-company (24)	(8.17)
Expenses for the acquisition of shares in subsidiaries		320.000
(Cash flows of investment activities)
Proceeds from the issue of own shares and of the capital contribution			400.000
(Cash flows of financial activities)
Proceeds from the issue of shares, which are covered by minority shareholders		80.000
(Cash flows of financial activities)
Total Amending Records		1.285.550	1.285.550

On the basis of the financial data of D and Z companies, contained in their separate accounts and taking into account the consolidation adjustments included in diagram 1, the consolidated account as shown in Table 3 has been drawn up. This table shows only those account positions that contain numeric data, and the letters in bold in the brackets correspond to the individual eliminations shown in diagram 1.

The names of the individual items adopted on the consolidated account have been somewhat simplified in relation to those of Annex 4 of the Consolidation Regulation.

Table 3.

Consolidation of the cash flow accounts of D and Z companies with shares in the associated company S

Cash Flow Account Items	Company D 1.01-31.12.200X	Company Z 1.01-31.12.200X	Revisions		Consolidated Data
			(+)	(-)
1	2	3	4	5	6
Cash flow from operating activities
Net profit	300.000	150.000	(c) 950	(a) 30.000	349.650
			(e) 6.650	(b) 5.000
			(I) 40.000	(d) 35.000
				(h) 40.000
				(j) 12.000
				(m) 25.950
Total adjustments	748.000	290.000	167.950	67.600	1.138.350
Profits of minority shareholders			(m) 25.950		25.950
Profit on shares in company S accounted for by the equity method				(I) 40.000	(40.000)
Depreciation	150.000	120.000	(b) 5.000		275.000
Write-down of goodwill			(a) 30.000		30.000
Interest and shares in the profits of Z and S	(102.000)	140.000	(h) 40.000		90.000
			(j) 12.000
Return on investment activities	(120.000)	(40.000)			(160.000)
Change of reserves	(30.000)	10.000		(c) 950	(20.950)
Inventory Change	570.000	(30.000)	(d) 35.000		575.000
Change in receivables	300.000	20.000	(k) 20.000		340.000
Change of commitments	(20.000)	70.000		(k) 20.000	30.000
Change of accruals of accruals				(e) 6.650	(6.650)
Net cash flow from operating activities	1.048.000	440.000	215.550	215.550	1.488.000
Cash flow from investment activities
Receipts from disposals of fixed assets	180.000	80.000			260.000
Proceeds from financial assets in Z and S companies	172.000			(g) 120.000	12.000
				(i) 40.000

1	2	3	4		5
Total investment activities	352.000	80.000	-0-	160.000	272.000
Expenditure on acquisition of fixed assets	600.000	800.000			1.400.000
Expenditure on financial assets in company Z	820.000		(f) 500.000		-
			(n) 320.000
Dividends paid to minority shareholders				(i) 10.000	10.000
Total investment activity expenditure	1.420.000	800.000	820.000	10.000	1.410.000
Net cash flow from investment activities	(1.068.000)	(720.000)	820.000	170.000	(1.138.000)
Cash flow from financial activities
Net inflows of capital		400.000		(n) 400.000	-
Proceeds from the issue of shares, which are covered by minority shareholders			(n) 80.000		80.000
Borrowings and loans	600.000	500.000		(f) 500.000	600.000
Total receipts of financial activities	600.000	900.000	80.000	900.000	680.000
Expenditure on dividends	120.000	50.000	(i) 50.000		120.000
Repayment of loans and loans	260.000	200.000			460.000
Interest paid	70.000	150.000	(g) 120.000		100.000
Total financial activities	450.000	400.000	170.000	-0-	680.000
Net cash flow from financial activities	150.000	500.000	250.000	900.000	-0-
Total net cash flow	130.000	220.000	1.285.550	1.285.550	350.000
Cash for the beginning of the year	70.000	30.000			100.000
Cash at the end of the year	200.000	250.000			450.000