Act Of 29 September 1994. Accounting

Original Language Title: USTAWA z dnia 29 września 1994 r. o rachunkowości

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Section 1

General

Art. 1. [adjustment range] The Act prescribes the accounting mode audit of financial statements by the auditors and the rules for the activities of bookkeeping services.

Art. 2. [Application of the provisions of the Act] 1. The provisions of the Accounting Act, hereinafter referred to as "the Act" shall, subject to paragraph. 3, to established or place of business in the territory of the Republic of Polish:

1) of the Commercial Companies (partnerships and companies, including the organizations) and civil partnerships, subject to paragraph 2, as well as other legal persons, with the exception of the Treasury and the Polish National Bank;

2) individuals, civil partnerships of natural persons, partnerships of individuals and companies partner if their net revenues from sales of goods, products and financial operations for the previous year amounted to at least the equivalent in Polish currency 1 200 000;

3) organizational units operating under the Banking Law, regulations on securities trading, regulations on investment funds and management of alternative investment funds, the regulations on insurance and reinsurance activities, the provisions on cooperative savings and credit or regulations on the organization and operation of funds pension, regardless of the size of revenues;

4) municipalities, counties, regions and their associations, as well as:

A) state, municipal, district and provincial budget units,

B) municipal, district and provincial budgetary establishments;

C) (repealed)

5) organizational units without legal personality, with the exception of the companies referred to in paragraphs 1 and 2;

6) branches and representative offices of foreign enterprises within the meaning of the provisions on freedom of economic activity;

7) individuals listed in items 1-6, where they receive for the implementation of tasks assigned grants or subsidies from the state budget, local government budgets, or special purpose funds - from the beginning of the financial year in which grants or subsidies have been awarded to them.

2. Individuals, partnerships of natural persons, partnerships of individuals and partnerships may apply the accounting rules set by law the beginning of the next financial year, if their net revenues from sales of goods, products and financial operations for the previous financial year are lower than the equivalent in currency Polish 1 200 000. In this case, these persons or members before the beginning of the financial year are obliged to notify the tax office competent in matters of income tax. Individuals or members of civil partnerships of natural persons may submit a notification pursuant to the provisions of freedom of economic activity.

2a. To partnerships of individuals and companies partner whose net revenues from sales of goods, products and financial operations for the previous year amounted to less than the equivalent in Polish currency 1 200 000 and that do not apply the accounting principles specified in the Act on the basis of paragraphs. 2, shall apply. 70a.

2b. The provisions of the Act also applies, regardless of the size of income, alternative investment companies within the meaning of investment funds and managing alternative investment funds, including authorized to use the name "EuVECA" or "EuSEF."
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. Entities preparing financial statements in accordance with International Accounting Standards, International Financial Reporting Standards and related interpretations announced in the form of European Commission regulations, hereinafter referred to as "IAS", apply the provisions of the Act and regulations issued on its basis, not covered by the IAS.

4. Church legal persons engaged in economic activity leading accountancy in accordance with the internal regulations of these people.

5. The units referred to in Article. 10a paragraph. 1 of the Act of 24 April 2003. On public benefit and volunteer work (Dz. U. of 2016. Pos. 239 and 395) can keep simplified records of revenues and expenses on the terms and conditions specified in the Act.

Art. 3. [Definitions] 1. Whenever the Act mentions:

1) unit - shall mean the entities and persons referred to in Article. 2 paragraphs. 1;

2) Bank - means a unit operating under the provisions of the Banking Law;

3) insurance - shall mean the entity engaged in the business of insurance under the provisions of the insurance business;


3a) regulations on trading in securities - shall mean the provisions of the Act on Trading in Financial Instruments Act on Capital Market Supervision, the Act on Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies;

3b) reinsurance undertaking - shall mean the entity engaged in reinsurance business under the provisions on reinsurance activities;

4) Ownership & shares or - shall mean a correspondingly shares or shareholders;

5) domestic currency, foreign currencies and foreign currency - mean the domestic currency, foreign currencies and foreign currency referred to in the provisions of the Foreign Exchange Law;

5a) member body unit - shall mean the natural person acting as a member of the board of directors or other governing body, a member of the supervisory board or other supervisory body, as well as other administrative body unit, appointed to the position in accordance with the provisions of the articles of association , statutes or other applicable entity laws;

6) manager represented units - shall mean a member of the board of directors or other governing body, and if the body is a multi - members of this body, with the exception of representatives established by the unit.

In the case of a general partnership company and civil head of the unit is considered to partners engaged in affairs of the company, in the case of a partnership - Partners engaged in affairs of the company or the board, and for the limited partnership and limited joint stock partnership - general partners leading the company's affairs. In the case of a natural person conducting business as head of the unit is considered to this person; to members of the liberal professions, this provision shall apply accordingly. For the head of the unit is also considered a liquidator and the liquidator or administrator established in the restructuring proceedings;

7) approving body - shall mean the body which in accordance with the individual provisions of the law, statute, contract or under the law of property is entitled to approve the financial statements. In the case of a partnership, with the exception of a limited joint-stock partnership, and civil partnership by the approving authority is understood as its shareholders;

8) during the reporting period - shall mean the period for which financial statements are presented in a manner provided by law or other reports drawn up on the basis of accounting records;

9) year - it means the calendar year or other period of 12 consecutive full calendar months, also used for tax purposes. The financial year or changes specified in the statute or agreement under which you created the unit. If the entity commenced operations in the second half of the financial year adopted, it is possible accounting records and financial statements for the period combined with the accounting records and financial statements for the following year. In case of change of the financial year the first year after the change should be no longer than 12 consecutive months;

10) the balance sheet date - shall mean the date on which an entity prepares its financial statements;

11) adopted accounting principles (policy) - mean the selected and used by the solution allowed by law, including those set out in IAS, to ensure the required quality of financial statements;

12) assets - shall mean a resource controlled by the property of a reliably determined value, as a result of past events and from which future flow to the economic benefits;

13) fixed assets - shall mean the assets of entities that are not included in the assets referred to in paragraph 18;

14) intangible assets - means that, subject to paragraph 17, acquired by the entity, included in fixed assets, property rights suitable for business use, with the expected economic life longer than one year, intended for use on needs of the individual, in particular:

A) copyrights, related rights, licenses, concessions,

B) rights to inventions, patents, trademarks, utility and ornamental

C) know-how.

In the case of intangible assets put into use under the lease, rental or lease, intangible assets are classified as non-current assets of one of the parties in accordance with the conditions set out in paragraph. 4. The intangible assets also include acquired goodwill and development costs;


15) fixed assets - means that, subject to paragraph 17, tangible fixed assets and equivalents, with an expected economic life longer than one year, complete, fit for use and intended for the needs of the individual. These include in particular:

A) property - including land, the right of perpetual usufruct of land, buildings and structures, as well as being separate premises owned, co-operative ownership right to residential premises and cooperative right to premises,

B) machinery, equipment, vehicles and other things

C) improvements to leasehold,

D) livestock.

Fixed assets put into use under lease, rental or lease are included in fixed assets of one of the parties in accordance with the conditions set out in paragraph. 4;

16) fixed assets under construction - means it included in fixed assets fixed assets in the construction, installation or improvement of an existing asset;

17) investment - means the assets held by the entity in order to achieve the economic benefits resulting from the increase in value of these assets are deductible in the form of interest, dividends (share in profit), or other benefits, including transactions trade, and in particular financial assets and the real estate and intangible assets, which are not used by the body, but are owned by it in order to achieve these benefits. In the case of insurance and reinsurance undertakings by the investment shall mean the deposit;

18) current assets - means that this part of the assets of the entity, which in the case:

A) tangible assets referred to in paragraph 19 above - are intended for sale or use within 12 months from the balance sheet date or within the normal operating cycle appropriate for the activity, if it lasts longer than 12 months

B) financial assets, as referred to in paragraph 24 - are due and payable or intended for sale within 12 months after the balance sheet date or the date of their establishment, issue or purchase, or are cash assets

C) short-term receivables - include total debts from deliveries and services and all or part of other debts not included in financial assets, and which become due within 12 months from the balance sheet date,

D) accruals - not last longer than 12 months from the balance sheet date;

19) tangible current assets - shall mean the materials purchased to be used for their own needs, manufactured or processed by the finished products (goods and services) suitable for sale or in the course of production, finished products and goods purchased for resale in unprocessed;

20) liabilities - understood as the result of past events, to perform reliably determined value, which will result in the use of current or future assets;

21) reserves - means the liabilities whose maturity or amount are not certain;

21a) technical provisions - mean the technical provisions for accounting purposes created by the insurance or reinsurance undertaking;

22) short-term liabilities - means that all liabilities from supplies and services, as well as all or part of the other liabilities that become due within 12 months from the balance sheet date;

23) financial instruments - shall mean a contract that gives rise to a financial asset of one party and a financial liability or equity instrument of another party, provided that the contract concluded between two or more parties at the economic results, regardless of whether the exercise of rights or obligations under the contract is unconditional or conditional. Financial instruments do not include, in particular:

A) reserves and assets for deferred income tax

B) contracts for financial guarantees, which determine the performance of the obligations under the guarantee, in the form of payment of the amounts corresponding to the losses incurred by the beneficiary as a result of non-repayment of debts by the debtor within the required period,

C) contracts for the transfer of rights from securities in the period between the date of the conclusion and settlement of transactions, the execution of these agreements requires the issuance of securities within a certain period, even if the transfer of these rights occurs in the form of a record in a securities account maintained by an entity authorized under separate legislation


D) the assets and liabilities of the programs, which result in the shares of employees and other persons associated with the unit in its equity or equity in another entity of the group to which the unit

E) merger agreements, which give rise to obligations set out in Article. 44b paragraph. 9;

24) financial assets - means this cash equivalents, equity instruments issued by other entities, as well as a contractual right to receive cash assets, or the right to exchange financial instruments with another entity on favorable terms;

25) monetary assets - shall mean the assets in the form of domestic, and foreign currencies. Cash assets to other financial assets, including in particular accrued interest on financial assets. If these assets are payable or due within 3 months from the date of their receipt, issue, purchase or assumptions (deposits), then for the purposes of the cash flow statement include them into cash, unless they are included in cash flows from investing activities (investment );

26) equity - mean the contracts, of which the right to the property of the individual, remaining after the satisfaction or securing of all creditors, as well as the commitment of the entity to issue or deliver its own equity instruments, and in particular shares, stock options own or warrants;

27) financial liabilities - mean the entity's obligation to deliver financial assets or to exchange financial instruments with another entity on unfavorable terms;

28) contingent liabilities - shall mean the obligation to make payments which are dependent on the occurrence of certain events;

29) Net assets - shall mean the assets of less liabilities, corresponding in value capital (fund) own;

30) revenues and profits - mean the probable rise in the reporting period of economic benefits of a reliably determined value, by increasing the value of assets or decrease in the value of liabilities, which will lead to an increase in equity or reduce its deficit in other way than the contribution of funds by shareholders or owners;

31) costs and losses - it means the probable decrease in the reporting period of economic benefits of a reliably determined value, in the form of a decrease in the value of assets or increase of liabilities and reserves that will lead to a decrease in equity or an increase in other than withdrawal of funds by shareholders or owners;

32) other operating expenses and income - mean the costs and revenues indirectly related to the activities of the operating entity, in particular the costs and revenues related to:

A) social activities,

B) the disposal of fixed assets, assets under construction, intangible assets, as well as real estate and intangible assets included in the investment

C) the maintenance of real estate and intangible assets included in the investment, including the revaluation of these investments, as well as the reclassification according to the tangible and intangible assets, if the valuation of the investment assumed market price or otherwise specific fair value

D) write-offs of receivables and liabilities as prescribed, remitted or bad, with the exception of receivables and liabilities of public law do not add costs

E) the creation and dissolution of reserves, with the exception of provisions related to financial operations,

F) of asset write-downs and adjustments, with the exception of impairment losses charged to financial costs

G) of compensation and penalties

H) transferring or acquiring free of charge, including donated assets, including funds for purposes other than payments to the selling price, the acquisition or construction of fixed assets, fixed assets under construction or intangible assets, || |
I) with random events;

33) extraordinary profits and losses - means that profits and losses from banks, insurance companies, reinsurance companies and cooperative savings and credit as a result of unpredictable events, apart from the operating activities of the individual and unrelated to overall operating risk ;

34) exercising control over another entity - shall mean the individual's ability to govern financial and operating policies of an entity so as to obtain benefits from its activities;


35) exercising joint control over another entity - understood as the ability to partner jointly controlled entity on a par with other shareholders, pursuant to the contract concluded between them, the memorandum or articles of association to govern financial and operating policies of the entity, in order to achieve shared benefits from its activities;

36) significant influence over another entity - shall mean a constituent who is not exercise control or joint control unit's ability to influence the financial and operating policies of another entity, in particular by:

A) participation in decision-making on the distribution of profit or covering of loss or

B) representation on the governing body, supervisory or administrative, or

C) carrying out significant transactions with this entity, or

D) providing the unit technical information essential for its activity, or

E) the possibility of appointing and dismissing members of management, supervisory or administrative, or

F) holding not less than 20% of the total number of votes in the governing body of the unit;

37) parent company - means a unit which is a commercial company or a state-owned company, exercising control over a subsidiary, in particular:

A) holding directly or indirectly a majority of the total number of votes in the governing body of the subsidiary, also under agreements with other entitled to vote, exercising their rights to vote according to the will of the parent, or

B) being a shareholder of a subsidiary and authorized to direct the financial and operating policies of the subsidiary as a standalone or by designated persons or entities to each other on the basis of an agreement concluded with other eligible to vote, having under a statute or agreement of the company, including with its parent company, the majority of the total number of votes in governing, or

C) being a shareholder of a subsidiary and authorized to appoint and dismiss the majority of members of management, supervisory or administrative bodies of the subsidiary, or

D) being a shareholder of the subsidiary, which more than half of the members of the management, supervisory or administrative bodies in the previous financial year, during the current financial year and until the financial statements for the current fiscal year are people appointed to these positions as a result of the exercise by the parent company of voting rights in the governing bodies of the subsidiary, unless another entity or person has in relation to that subsidiary rights referred to in points a, c or e, or

E) being a shareholder of a subsidiary and authorized to direct the financial and operating policies of the subsidiary, under an agreement with the subsidiary or the Articles of Association of the subsidiary;

37a), the parent company of lower level - means a commercial company, which is also a subsidiary of another company or a commercial state company and the parent company with respect to at least one commercial company;

37b), the parent company of senior - means a unit which is a commercial company or a state-owned company which is the parent company in relation to the parent lower level;

37c) Associate controlled entity - shall mean a unit which is a commercial company or a state-owned enterprise, exercising together with other shareholders joint control over the entity interdependent;

37d) commitment to equity - means that any share in the capital of another entity, having the nature of a lasting relationship; durable link is always present in the case of acquisition, purchase or acquire in any other form of participation in the equity of an associate, unless the sale of the share in the short term from the date of its acquisition, purchase or acquire in any other form is highly likely, by contract or take other active measures on disposal;

38) significant investor - means a unit which is a commercial company or a state-owned company that holds equity interests of another entity and has significant influence over the entity;

39) subsidiary - means a unit which is a commercial company or an entity established and operating in accordance with the provisions of the foreign trade law, controlled by the parent company;

40), jointly-controlled entity - shall mean a unit which is jointly controlled by the shareholders on the basis of the contract between, partnership agreement or articles of association;


41) to associate - mean the unit which is a commercial company or an entity established and operating in accordance with the provisions of the foreign trade law, in which the investor has significant equity interests, and which has significant influence;

42) subsidiaries - it means the subsidiaries, jointly controlled entities and associates;

43) affiliates - means two or more units included in the group;

44) the group - mean the parent company and its subsidiaries;

45) consolidation - understood as the linking of the financial statements forming the capital group by summing respective items of financial statements of the parent company and its subsidiaries, including the necessary exemptions and adjustments;

46) Minority equity - means that part of the net assets of the subsidiary included in the consolidated financial statements, which belongs to shareholders other than the entities of the group;

47) method of property rights - means that adopted by the parent, partner jointly controlled entity or significant investor method of valuation of the net assets of the subsidiary, including goodwill or negative goodwill at the date of acquisition of control, joint control or significant influence. The initial value of the share updates on the balance sheet date, for which financial statements are, by changes in the value of the net assets of the subsidiary, which occurred in the reporting period, resulting from both achieved financial results, adjusted for write-off installment of goodwill or negative goodwill attributable to the reporting period, and about any other changes, including those resulting from the settlement of a parent, a partner in a jointly controlled entity or a significant investor;

48) European Economic Area - mean the countries of the European Union plus Iceland, Liechtenstein and Norway.

1a. Micro entities within the meaning of the Act are:

1) the companies referred to in Article. 2 paragraphs. 1 point 1, other legal persons, as well as branches of foreign enterprises within the meaning of the provisions on freedom of economic activity, if these units in the financial year for which it reports, and in the year preceding the year, in the case of units of start-ups - a year rotating, in which started to operate, do not exceed at least two of the following three values:

A) 1 500 000 zł - in the case of the total balance sheet assets at the end of the year,

B) 3 000 000 zł - in the case of net revenues from sales of goods and products for the financial year

C) 10 people - in the case of average employment in FTE,

2) associations, trade unions, employers' organizations, chambers of commerce, foundations, representative offices of foreign enterprises within the meaning of the provisions on freedom of economic activity, socio-professional organizations, farmers' organizations, professional self-government, self-government organizations of economic trade and Polish Motor Insurers' Bureau - if you do not engage in economic activity,

3) natural persons, partnerships of natural persons, partnerships of individuals and partnerships, if the net revenues of these entities from the sale of goods, products and financial operations amounted to the equivalent in Polish currency not less than 1 200 000 and not more than 2 000 000 for the previous year, and in the case of individuals starting out or bookkeeping in the manner prescribed by law - in the financial year, which commenced business or bookkeeping in the manner specified by law,

4) individuals, partnerships of natural persons, partnerships of individuals and partnerships, which apply the principles of accounting pursuant to Art. 2 paragraphs. 2

- In respect of which the approving authority took the decision on the preparation of financial statements in application of Article. 46 paragraph. 5 Section 4, Art. 47 paragraph. 4 Section 4, Art. 48 paragraph. 3, Art. 48a paragraph. 3, Art. 48b paragraph. 4 or art. 49 paragraph. 4.

1b. Micro entities within the meaning of the Act are also entities referred to in paragraph. 1a, point 1 that:

1) for the previous financial year to draw up a financial report on the application of Art. 46 paragraph. 5 Section 4, Art. 47 paragraph. 4 Section 4, Art. 48 paragraph. 3, Art. 48a paragraph. 3, Art. 48b paragraph. 4 or art. 49 paragraph. 4 and

2) in the financial year for which it reports, or in the year preceding the year exceeded the two mentioned in paragraph. 1a, point 1 size.

1c. Small units within the meaning of the Act are:


1) the companies referred to in Article. 2 paragraphs. 1 point 1, other legal persons, entities referred to in Article. 2 paragraphs. 1 point 2, and branches of foreign enterprises within the meaning of the provisions on freedom of economic activity, if these units in the financial year for which it reports, and in the year preceding the year, in the case of units of start-ups or bookkeeping in the manner prescribed by law - in the financial year, which commenced business or bookkeeping in the manner prescribed by law, does not exceed at least two of the following three values:

A) 17 000 000 zł - in the case of the total balance sheet assets at the end of the year,

B) 34 000 000 zł - in the case of net revenues from sales of goods and products for the financial year

C) 50 persons - in the case of average employment in FTE,

2) individuals, partnerships of natural persons, partnerships of individuals and partnerships, which apply the principles of accounting pursuant to Art. 2 paragraphs. 2

- For which the approving authority took the decision on the preparation of financial statements in application of Article. 46 paragraph. 5 Section 5, Art. 47 paragraph. 4 Section 5, Art. 48 paragraph. 4, Art. 48a paragraph. 4, Art. 48b paragraph. 5 or art. 49 paragraph. 5.

1d. Small units within the meaning of the Act are also entities referred to in paragraph. 1c that:

1) for the previous financial year to draw up a financial report on the application of Art. 46 paragraph. 5 Section 5, Art. 47 paragraph. 4 Section 5, Art. 48 paragraph. 4, Art. 48a paragraph. 4, Art. 48b paragraph. 5 or art. 49 paragraph. 5 and

2) in the financial year for which it reports, or in the year preceding the year exceeded the two mentioned in paragraph. 1c 1 point size.

1e. Paragraphs. 1a and 1c shall not apply to:

1) entities referred to in Article. 2 paragraphs. 1 point 3;

2) individuals wishing to apply for or applying for authorization to pursue activities pursuant to the provisions referred to in Article. 2 paragraphs. 1 point 3, or registration managing ASI under the provisions of investment funds and managing alternative investment funds;

2a) alternative investment companies within the meaning of investment funds and managing alternative investment funds, including authorized to use the name "EuVECA 'or' EuSEF '

3) issuers of securities, issuers wishing to apply for or applying for admission to trading on a regulated market of the European Economic Area;

4) issuers of securities admitted to trading in the alternative trading system;

5) national payment institutions;

6) electronic money institutions;

7) public sector entities.

1f. For the purposes of paragraph. 1 point 36 point f and point 37 point a-d right to vote and the right to appoint and dismiss members of management, supervisory or administrative belonging to any other subsidiary, and the rights belonging to persons acting on its own behalf, but on behalf of the parent company or another subsidiary, they are added to the relevant laws the parent company. These rights are reduced for the rights associated with the shares held:

1) on behalf of a person who is not a parent or its subsidiary, or

2) as collateral, if the rights in question are exercised in accordance with the instructions received, or

3) in connection with the granting of loans in the ordinary course of business if the voting rights are exercised in the interests of the person providing the security.

1g. For the purposes of paragraph. 1 point 36 point f and point 37 point a, b and d the total voting rights of shareholders in a subsidiary be reduced by the voting rights attaching to shares held by the subsidiary, its subsidiary or a person acting in his own name but on behalf of those entities.

2. Expressed in euros are translated into the Polish currency at the average exchange rate announced by the Polish National Bank, the balance sheet date, subject to paragraph. 3.
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. Expressed in euro size referred to in paragraph. 1a paragraph 3 and Article. 2 paragraphs. 1 point 2 and point. 2, translated into the Polish currency at the average exchange rate announced by the Polish National Bank on the first working day of October of the year preceding the fiscal year.


4. If the entity has adopted the use of foreign assets or intangible assets under the agreement, according to which one of the parties, hereinafter referred to as "financing", to the other party, hereinafter referred to as "beneficiary", fixed assets or intangible assets for paid use or to collect proceeds for a period of time, those assets are classified as fixed assets the lessee, if the agreement meets at least one of the following conditions:

1) the property of the object to the lessee at the end of the period for which it was concluded;

2) includes the right to acquire the object by the lessee at the end of the period for which it was concluded at a price lower than the market value of the acquisition;

3) the period for which it was concluded, corresponds for the most part the expected economic useful life of the asset or property right, which can not be shorter than 3/4 of the period. The right of ownership of the contract may be, after a period for which the agreement was concluded, transferred to the lessee;

4) the total fee, less discount, determined on the contract and payable during its term exceeds 90% of the market value of the contract at that date. In total, the fees take into account the residual value of the contract, which uses undertakes to pay for the transfer of the ownership of that object. To sum payments do not include payments to the lessor for additional services, taxes and insurance premiums this subject, if using covers them irrespective of charges for the use;

5) includes a promise of financing to conclude the uses another agreement about putting in a fee to use the same object or extending the existing contract, on terms more favorable than those provided by the existing agreement;

6) provides for the possibility of its termination, provided that any resulting respective costs and losses incurred by the lessor cover uses;

7) the object of the agreement was tailored to the individual needs of the user. It can only be used by the lessee without introducing significant changes to it.

5. In the event that at least one of the conditions set out in paragraph. 4, put into use the lessee fixed assets or intangible assets include in financing to financial assets under other long-term or short-term assets.

6. The units, with the exception of entities referred to in paragraph. 1e, which for the previous fiscal year did not exceed at least two of the following three values:

1) 17 000 000 zł - in the case of the total balance sheet assets at the end of the year,

2) 34 000 000 zł - in the case of net revenues from sales of goods and products for the financial year

3) 50 people - in the case of average employment in FTE

- And local government can make the qualifications of the agreements referred to in paragraph. 4, according to the rules laid down in the tax law and not to apply paragraph. 4 and 5.

Art. 4. [Accounting Policies] 1. The units are obliged to apply the adopted principles (policy), truly and fairly presenting the financial position and financial performance.

1a. For true and fair presentation of the financial position and financial result of the financial entity is obliged to submit any additional information necessary to meet that obligation in the notes.

1b. If in exceptional cases the application of a particular provision of the Act does not allow for a true and fair presentation of the financial position and financial result of the financial entity shall not apply this provision, and additional information justifies the reasons for its failure and identifies the impact that non-compliance provision has the image of the economic and financial and the financial result.

2. Events, including business transactions, are recognized in the accounting records and presented in the financial statements in accordance with their substance.
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. Accounting unit includes:

1) adopted rules (policies);

2) conducting, on the basis of accounting documents, accounting books, endearing records events in chronological order and systematic;

3) periodical fixing or checking inventory via real state of assets and liabilities;

4) valuation of assets and liabilities and determination of financial results;

5) The preparation of financial statements;

6) the collection and storage of accounting documents and other documentation provided by law;


7) subjecting the study, submitting to the relevant register court, sharing and publication of accounts in the cases provided by law.

4. An entity may, in the adopted accounting principles (policy) applied to simplify, if you do not have a significant adverse impact on the fulfillment of the obligation referred to in paragraph. 1.

4a. In applying the provisions of the Act, the unit is guided by the principle of materiality. The information presented in the financial statements and consolidated financial statements should be regarded as important if its omission or misstatement could influence the decisions taken on the basis of the users of these reports. There can be individual items to be negligible, if any non-essential items of a similar nature, including considered relevant.

5. Head of the unit, unless separate regulations provide otherwise, is responsible for carrying out the accounting requirements specified by law, including under the supervision of, well, if certain obligations in terms of accounting - with the exception of liability for conduct an inventory in the form of physical inventory - they are entrusted to another person or entrepreneur referred to in Article. 11 paragraph. 2, with their consent. Acceptance of responsibility by another person or entrepreneur should be stated in writing. When the manager of an authority is multiplayer, and is not identified the person responsible, responsibility of all members of this body.

Art. 4a. [Liability head of the unit and members of the Supervisory Board] 1. The head unit and members of the supervisory board or other body supervising entities are required to ensure that the financial statements, the consolidated financial statements, activity report and a report on the activities of the group meet the requirements of the Act.

2. Head of Unit and members of the supervisory board or other body supervising the entity jointly and severally liable to the company for damage caused by an act or omission constituting the breach of the obligation under paragraph. 1.

Art. 5. [Rule continuation of the adopted policies] 1. The adopted accounting principles (policy) should be used in a continuous manner, making the subsequent financial years equal grouping of transactions, valuation of assets and liabilities, including depreciation or amortization, determining the financial result and preparation of financial statements so that for subsequent years resulting therefrom were comparable. Shown in the accounts as of the close of assets and liabilities should be recognized in the same amount, in the open for the next fiscal year the accounting books.

2. In the application of accounting principles (policy) it is assumed that the Company will continue in the foreseeable future activities in the field no decrease significantly, without putting it into liquidation or bankruptcy, unless it is inconsistent with the facts or the law. In determining the entity's ability to continue its operations, manager of the unit takes into account all the information available at the date of the financial statements, for the foreseeable future, covering a period of not less than one year from the balance sheet date.

Art. 6. [Revenues and expenses for the year] 1. The books of accounts of the enclose all achieved, falling on his behalf income and chargeable to the costs associated with those revenues for the financial year, regardless of their due dates.

2. To ensure that income and related expenses to assets or liabilities of the reporting period will count the costs and revenues relating to future periods and attributable to the reporting period costs that have not yet been incurred.

Art. 7. [The principle of prudence] 1. The individual assets and liabilities are measured at the actual cost of their acquisition (formation) prices (costs), with the principle of prudence. In particular, for this purpose in the financial result, regardless of its height, consider the following:

1) reduce the useful or commercial assets, including those made in the form of depreciation or amortization;

2) (repealed)

3) only unquestionable other operating income and extraordinary gains;

4) All incurred other operating expenses and extraordinary losses;

5) provisions for risk identified, impending losses and effects of other events.

2. The events referred to in paragraph. 1, should be considered also when they are revealed between the balance sheet date and the date on which actually closes accounts.


2a. Micro entity referred to in Article. 3 paragraphs. 1a, point 2, may resign from the behavior of the precautionary principle in the valuation of individual assets and liabilities.
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. The value of individual assets and liabilities, revenues and related costs, as well as extraordinary gains and losses are determined separately. You can not offset each other of different kind assets and liabilities, income and expenses associated with them, and extraordinary gains and losses.

Art. 8. [The choice of solutions allowed by law] 1. In determining the rules (policies) must ensure identification of all events relevant to the assessment of economic and financial situation and the financial result entities, while maintaining the precautionary principle referred to in Article. 7.

2. For a true and fair presentation of the individual can, with effect from the first day of the financial year, regardless of the date of the decision to change the existing systems on the other, provided for by law. Changing of the prior art also requires determination in the notes the impact of these changes on the financial statements required other laws if they have been prepared for the period in which these developments have changed. In such a case should be in the financial statements for the fiscal year in which these changes occurred, give reasons for these changes, quantify their impact on the financial performance and the comparability of the financial statements relating to the year preceding the year in which the changes were made. The effects of changes in accounting principles (policy) refers to capital (fund) and shows the profit (loss) from previous years.
3
. In the event of changes in accounting principles (policy), caused by discontinuing the use of IAS in the preparation of financial statements by the entities referred to in Article. 45 paragraph. 1a and 1b, the financial consequences of the transition to the rules (policy) specified in the Act refers to capital (fund) and shows the profit (loss) from previous years, and if the effects of the revaluation of assets made in accordance with IAS settled with a capital (fund) revaluation reserve - as a change in the status of the capital (fund). To change the rules (policies) involving the discontinuation of IAS in the preparation of financial statements, the provisions of paragraphs. 1 and 2.


Section 2


Bookkeeping

Art. 9. [Polish, Polish currency] Account books are kept in the Polish language and Polish currency.

Art. 10. [documentation] 1. The body should have the documentation in Polish describing the accounting principles (policy), in particular concerning:

1) determine the financial year and in the reporting periods;

2) the method of valuation of assets and liabilities and determining the financial result;

3) the method of bookkeeping, including at least:

A) capital account plan, setting out a list of general ledger accounts adopted principles for the classification of events, principles of subsidiary ledger accounts and their links to general ledger accounts,

B) a list of the books, and the bookkeeping using a computer - a list of data sets making up accounts on data carriers with an indication of their structure, interrelationships and their functions within the organization the whole accounting records and processes data, || |
C) a description of the data processing system, and the bookkeeping using a computer - description of the system, including a list of programs, procedures or functions, depending on the structure of the software, together with a description of algorithms and parameters and software data protection principles in including in particular the methods of securing access to data and processing system, and also to determine the software version and the date of commencement of its operation;

4) system for the protection of data and file, including accounting documents, accounting books and other documents constituting the basis of records made to them.

2. Head of the unit is determined in writing and updating the documentation referred to in paragraph. 1.
3
. In matters not regulated by the Act, adopting the rules (policies), the entity may apply national accounting standards issued by the Accounting Standards Committee. In the absence of an adequate standard of national units, other than those referred to in Article. 2 paragraphs. 3, may apply IAS.

Art. 11. [Place of the books] 1. The accounts are held by the entity.

2. The unit can entrust bookkeeping:


1) entrepreneurs, referred to in art. 76a paragraph. 3, or entrepreneurs conducting business in this field from another Member State within the meaning of art. 2 paragraphs. 1, item 4 of the Law of 4 March 2010. Provision of services on the Polish territory (Dz. U. item. 278, as amended. D.);

2) in the case of public sector entities - another unit of the public finance sector, the rules specified in separate regulations.

Art. 11a. [Bookkeeping outside the headquarters unit or a place for the board] If the accounts are kept offsite unit or place of executive management, head of the unit shall:

1) notify the competent tax office about the place bookkeeping within 15 days from the date of issue;

2) ensure the availability of accounting records, including supporting documents to competent authorities outside of the control or supervision at the headquarters of the unit or place of executive management or in another place with the agreement of the inspection authority or supervision.

Art. 12. [opening and closing] 1. The accounts shall be opened, subject to paragraph. 3:

1) the date of commencement of activity, which is the first day of a precipitating event for pecuniary or financial

2) at the beginning of each subsequent year,

3) the date of change of legal form,

4) on the registration date of a business combination or split units, giving rise to a new unit (s)

5) the date of commencement of liquidation or bankruptcy

- Within 15 days from the date of occurrence of these events.

2. The books of account closed, subject to paragraph. 3, 3a, 3b and 3c:

1) on the last day of the fiscal year,

2) the date the entity's operations, including its sale, the completion of the liquidation or bankruptcy proceedings, unless there has been redeemed,

3) on the day preceding the change of legal form,

4) in the acquiree at the date of the merger resulting from the acquisition entity by another entity, it is on the registration date of the merger,

5) on the day preceding the day of the division or combination, if the demerger or merger created a new entity, it is the day preceding the registration date of the merger or division,

6) on the day preceding the date of putting an entity in liquidation or bankruptcy,

7) to another balance sheet date specified in separate regulations

- Not later than within 3 months from the date of occurrence of these events.
3
. You can not close or open the books of account in case of:

1) the conversion of a partnership and civil partnership in another partnership, as well as a capital company to another capital company;

2) combinations, while under the Act settlement of the merger occurs pooling of interest method and does not create a new unit.

3) (repealed)

3a. You can not close the books, if the division unit followed by separation.

3b. You can not close the accounts for the financial year in which the activities of the unit at all times remained suspended, unless the entity of depreciation or amortization, or any other precipitating events for pecuniary or financial.

3c. The provision of paragraph. 3b shall not apply to issuers of securities wishing to apply for admission or applying for admission to trading on a regulated market in a country belonging to the European Economic Area and the issuers of securities admitted to trading on the market.

4. The final closing and opening of the accounts of the continuing activities should take place no later than within 15 days from the date of approval of the financial statements for the fiscal year.

5. Closing of accounts is permanently switched off possibility of accounting entries in the collection forming closed accounts, taking into consideration art. 13 paragraph. 2 and 3.

Art. 13. [The components of accounts] 1. The accounts include sets of accounting records, the turnover (sum of records) and balances that make up:

1) daily;

2) ledger;

3) sub-ledgers;

4) statement: turnover and balance ledger accounts and balances of subsidiary ledger accounts;

5) a list of assets and liabilities (inventory).

2. With bookkeeping using a computer to be equivalent to them is considered appropriate accounting information resources, organized in the form of separate electronic data files, databases or separate part of it, irrespective of the place of their creation and storage.

3
. The condition for maintaining information resources accounting system in the form specified in paragraph. 2 is to have the software unit capable of supplying clear information in relation to entries made in the books, by their print or transfer to computer data carrier.

4. Account books, including techniques for their conduct should be:

1) permanently marked with the name (full or abbreviated) of the entity to which they relate (each bound book, every loose card angulation, even if they have the form of a computer printout or statement displayed on a computer monitor), type the name of the ledger and the name processing program;

2) clearly marked as to the financial year, the reporting period and the date of preparation;

3) stored neatly in order.

5. With bookkeeping using a computer should provide automatic control of the continuity of records, transfer of turnover or balance. Computer printouts accounting records should consist of automatically numbered pages, with the designation of the first and the last, and be summed up in the following pages in a continuous manner in a year.

6. The accounts shall be printed no later than the end of the financial year. Equivalent to printing is considered to transfer the contents of accounts on computer storage media, providing life saving information for not less than required for keeping accounts.

Art. 14. [Official] 1. The log contains a chronological approach of events that occurred during the reporting period. Regardless of the technique of bookkeeping journal should enable the reconciliation of its turnover with turnover trial balance ledger accounts.

2. Log entries must be consecutively numbered, and the sum of the records (turnover) calculated on a continuous basis. Way of making entries in the log should allow their unambiguous link with verified and approved accounting documents.
3
. If a partial logs, grouping events by their types, you should make a list of those logs turnover for the reporting period.

4. With bookkeeping using a computer entry should have automatically assigned to the item number under which was introduced to the journal, as well as data for determining the person responsible for the content of the recording.

Art. 15. [general ledger accounts] 1. The accounts ledger containing records about events in terms of systematic. On the ledger accounts effective recognition of previously registered, or at the same time in the event log, in accordance with the principle of double entry.

2. Subscriptions for a specific general ledger account is done in chronological order.

Art. 16. [Accounts ledgers] 1. The accounts ledgers contain provisions that are specific expression and supplement the provisions of general ledger accounts. It is carried out in a systematic approach as a separate system of books, files (collections of accounts), computer sets of data agreed with the balances and entries on the ledger accounts.

2. Accounts ledgers, you can use during the reporting period, in addition to or instead of monetary units, natural units. You must then be drawn up at the end of the reporting period summary of the entries in accounts ledgers in natural units and determine their value.
3
. (Repealed)

Art. 17. [Keeping subsidiary ledger accounts] 1. The accounts ledgers carried out in particular for:

1) of fixed assets, including fixed assets under construction, intangible assets and made them to depreciation or amortization;

2) settlements with contractors;

3) settlements with employees, especially as her personal record of providing salaries to obtain information from the entire period of employment;

4) sales operations (numbered sequentially own invoices and other evidence, the detail necessary for tax purposes);

5), purchase transactions (foreign invoices and other evidence, the detail necessary for the valuation of assets and for tax purposes);

6) the costs and relevant to the individual assets;

7) cash operations for conducting cash.

2. Head of the unit, taking into account the type and value of individual groups of tangible assets owned by the entity, shall decide on the application of one of the following methods of subsidiary ledger accounts for these groups of ingredients:

1) records of quantity and value, in which each component is recognized in turnover and in physical and monetary units;


2) records of quantitative turnover and states, conducted for the individual components or homogeneous groups, only in natural units. State value measured at least at the end of the reporting period, which followed the settlement with the budget of income tax, made on the basis of actual data;

3) records of valuable turnover and balance of goods and packaging, led the points of retail trade or storage, the subject of which records are only the revenues, expenditures and the states of the entire supply;

4) writing off the cost of materials and goods on the day of purchase or finished products at the time of manufacture, linked to the determination of the status of these assets and the valuation adjustments and the costs of the value of this state, no later than at the balance sheet date.

Art. 18. [Trial balance] 1. On the basis of entries in ledger accounts prepared at the end of each reporting period, but not less than at the end of the month, a trial balance, including:

1) symbols or names of the accounts;

2) account balances on the opening day of the accounting records, the turnover for the reporting period and cumulatively since the beginning of the financial year and the balance at the end of the reporting period;

3) the sum of the balances on the opening day of the accounting records, the turnover for the reporting period and cumulatively since the beginning of the year and balances at the end of the reporting period.

Turnover of this statement shall be in accordance with the rotation of the log, or turnovers of turnovers partial logs.

2. At least for the day closure of the accounts are prepared statement balances of all accounts ledgers, and on the day of inventory - statement balances inwentaryzowanej group of assets.

Art. 19. [Inventory] 1. A list of assets and liabilities (inventory), confirmed their inventory, draw up the unit, which previously did not carry the accounting records in the manner prescribed by law. In other entities the role of inventory fulfills a trial balance ledger account balances and statements of subsidiary ledger accounts prepared as at closure of the accounts.

2. Positions inventory drawn up by the entities that have not previously led the books, should provide equivalent or development of individual items of the opening balance sheet. Assets and liabilities are valued in the inventory according to the rules set out in Chapter 4.

Art. 20. [records in the books of the reporting period] 1. The accounting records of the reporting period should be introduced, in the form of recording every event that occurred in the reporting period.

2. The basis of the accountancy records are accounting documents evidencing an economic operation, 'the source evidence ":

1) External Foreign - received from counterparties;

2) External own - passed in the original counterparties;

3) internal - related to operations inside the unit.
3
. The basis of records can also be prepared by the accounting documents:

1) summary - used to make the total subscriptions set of source documents, which must be proof of a collective individually listed;

2) correcting previous records;

3) replacement - issued until receipt of proof of foreign external source;

4) billing - endearing already made records by the new classification criteria.

4. In the case of justified inability to obtain external sources of foreign evidence, Head of Unit may authorize documented business transaction with the accounting evidence substitute, drawn up by the person carrying out these operations. It can not, however, apply to business transactions, which are subject to tax on taxable purchases of goods and services and the purchase of non-ferrous metals from the population.

5. With bookkeeping using a computer to be equivalent to the evidence source is considered the accounting records, made automatically via the communication devices, information storage media or generated by an algorithm (program) on the basis of information already in the books, ensuring that when registering these records will be met at least the following conditions:

1) they obtain permanent readable form compatible with the content of the relevant accounting documents;

2) it is possible to determine their origin and to determine the person responsible for their introduction;

3) used procedure provides validation process the relevant data, completeness and identity records;

4) source data at the point of their creation are adequately protected so as to ensure their persistence, for the period required to store the type of accounting documents.


Art. 21. [An accounting] 1. An accounting document must contain at least the following:

1) the type of document and its identification number;

2) the parties (names, addresses) entering into business transaction;

3) a description of the operation and its value, if possible, as set out also in natural units;

4) the date of the operation, and when evidence has been prepared under a different date - the date of preparation of proof;

5) The signature of the proof and the person to whom issued or adopted by the assets;

6) a statement of verification and proof qualify for recognition in the books by indicating the month and to methods of proof in the books (attribution), the signature of the person responsible for these indications.

7) (repealed)

1a. You can refrain from placing on the proof of the data referred to:

1) paragraph. 1 points 1-3 and 5, if it results from separate regulations;

2) paragraph. 1, item 6, if it follows the technical documentation of the accounting records.

2. The value can be omitted in the proof, if in the course of processing accounting data expressed in natural units following their valuation, confirmed by appropriate printing.
3
. An accounting amounting to the foreign currency conversion should include the value of the Polish currency at the exchange rate prevailing at the transaction date business. Result of the conversion shall be directly on the proof, unless the data processing system provides automatic conversion of foreign currencies into the Polish currency, and the execution of this conversion confirms the corresponding print.

4. If the evidence does not document the transfer or acquisition of assets, transfer of ownership or perpetual usufruct or not evidence substitute, signatures of persons referred to in paragraph. 1 point 5 may be replaced with ensuring the determination of these people. Signatures on documents issued insurance and securities may be reproduced mechanically.

5. At the request of the supervisory authorities and auditor must ensure a reliable translation into Polish content indicated by their evidence, drawn up in a foreign language.

Art. 22. [Features of accounting documents] 1. Accounting documents should be reliable, it is consistent with the actual course of economic operation, which document, complete, containing at least the information specified in Article. 21, and free from errors. It is unacceptable to make the evidence of accounting erasures and alterations.

2. Errors in evidence external source of foreign and own can be corrected only by sending a contractor to the appropriate document containing correcting, with appropriate justification, unless other regulations provide otherwise.
3
. Errors in internal evidence may be amended by deleting the incorrect content or the amount of maintenance readability deleted phrases or numbers, enter the correct content and date of the amendment and signature by an authorized person, unless separate regulations provide otherwise. You can not correct individual letters or numbers.

4. If one operation is documented evidence of more than one or more than one copy of proof, Head of Unit sets out the treatment with each of them and indicate which proof or a copy will be the basis to make the recording.

Art. 23. [records in the books] 1. Entries in the books of accounts is done in a sustainable manner, without leaving seats allow for subsequent additions or changes. With bookkeeping using a computer to be used appropriate procedures and measures to protect against destruction, modification or concealment record.

2. Entry must contain at least the following:

1) the date of the business transaction;

2) the type and identification number of accounting evidence underlying the recording and the date thereof, if it differs from the date of the operation;

3) understandable text, abbreviation or code description of the operation, except that you must have a written explanation of the contents of abbreviations or codes;

4) the amount and date of entry;

5) designation of the accounts concerned.
3
. Records related to transactions denominated in foreign currencies is done in a manner which recognizes the operation amount in Polish currency and foreign currency.

4. Entries in the journal and ledger accounts should be linked together in a way that allows them to check.

5. The accounting records should be made to ensure their durability, for not less than required to keep accounting records.

Art. 24. [Method of bookkeeping] 1. The accounts should be carried out reliably, error-free and verifiable basis.

2. Books of accounts is considered reliable if made in these records reflect the actual situation.

3
. The books of account shall be deemed to run flawlessly, if introduced to them completely and correctly classified all the accounts in the month accounting documents, records and ensured the continuity of faultless operation procedures applied computing.

4. Books of accounts is considered verifiable if to help determine the correctness of entries made in them, states (balances) and activities used calculation procedures, in particular:

1) documentation of entries allows the identification evidence and how they save in the books at all stages of processing;

2) records are arranged chronologically and systematically according to the classification criteria for establishing the applicable unit of financial statements and other reports, including tax returns and make financial settlements;

3) in the case of bookkeeping using a computer is provided complete control sets accounting system and performance data;

4) is provided access to collections data to, regardless of the technique used, to obtain at any time and for any selected period of clear and understandable information about the content of the entries in the books.

5. The books of account shall be deemed to date conducted if:

1) derived from the information they allow for the preparation, within the applicable unit of financial statements and other reports, including tax returns and make financial settlements;

2) the trial balance ledger accounts are drawn up, at least for individual reporting periods, at least at the end of the month within the period referred to in paragraph 1, and for the year - no later than 85 days after the date balance sheet;

3), recognition of deposits and withdrawals in cash, checks and bills of exchange and foreign retail trade and catering occurs on the same day on which they were made.

Art. 25. [Correction of errors in the records] 1. The errors found in the records is improving:

1) by deleting the existing content and entering a new, while maintaining readability incorrect entry, and the signing of the amendment and the date of placement; such amendments must be made simultaneously in all the books of accounts and may not take place after the close of the month or

2) by entering into the accounts stating the correction of erroneous records, records made only positive or only negative.

2. In case of revealing of errors after the close of the month or bookkeeping using a computer, you are allowed only adjustments made in the manner specified in paragraph. 1 point 2.


Section 3

Inventory


Art. 26. [Date and subject inventory] 1. The units carry out on the last day of each fiscal year inventory:

1) monetary assets (except on bank accounts), securities in the form of material, tangible assets, fixed assets and real estate classified as investment, subject to paragraph 3, as well as machinery and equipment included in fixed assets under construction - the physical inventory quantities in nature, the valuation of these quantities, comparison of the data from the accounting records and the clarification and settlement of any differences;

2) financial assets held in bank accounts or stored by other entities, including the securities in dematerialized form, accounts receivable, including loans, subject to paragraph 3, and contractors entrusted their assets - by receiving banks and obtain from contractors confirmation correctness shown in the books of accounts of the status of these assets and to clarify and settle any differences;

3) of fixed assets, access to which is much more difficult, land rights and qualified for real estate, receivables disputed and doubtful, and banks also doubtful receivables, receivables and liabilities to persons not accounting books, the titles of the public, as well as assets and liabilities not listed in paragraphs 1 and 2 and listed in paragraphs 1 and 2 if their conduct physical inventory and reconciliation of justified reasons it was not possible - by comparing data accounting records of the relevant documents and verification of these components.

2. Inventory of the physical inventory includes also found in individual assets owned by other entities, entrusted it to the sale, storage, processing or use, notifying the units of the results of the census. This obligation does not apply to entities providing postal services, transport, shipping and storage.

3
. Timing and frequency of inventory referred to in paragraph. 1, is considered to be met if the inventory:

1) assets - with the exception of monetary assets, securities, products in the production and materials, goods and finished products, as defined in Article. 17 paragraph. 2 point 4 - started not earlier than 3 months before the end of the financial year and finished 15th of the following year, setting the state was by adding or write-off of state identified the physical inventory or balance confirmation - revenues and expenditures (increases and decreases) that occurred between the date of the census, or to confirm a date of setting the state resulting from the books, the state resulting from the books can not be determined at the balance sheet date;

2) inventory of materials, goods, finished products and semi-finished products are located in controlled landfills and records covered by the quantity and value - carried out once every two years;

3) property included in fixed assets and investments, as well as located in a guarded other fixed assets and machinery and equipment included in assets under construction - carried out once every four years;

4) The stocks of goods and materials (packaging) covered by the records valuable points in the retail trade units - carried out once a year;

5) inventories of wood in units engaged in forestry - carried out once a year.

4. The inventory referred to in paragraph. 1, is also carried out on the day of completion of the business entity, and the day preceding the place it into liquidation or bankruptcy.

5. You can withdraw from the inventory:

1) (repealed)

2) in the case of merger or division of units, with the exception of companies, if the parties by written agreement depart from conducting the inventory;

3) in the case of suspension of activities where, in accordance with Article. 12 paragraph. 3b unit does not close the accounts.

Art. 27. [Documenting inventory] 1. Implementation and results of the inventory must be properly documented and linked to the entries in the books of account.

2. Disclosed in the course of inventory differences between the actual and the state as disclosed in the accounting books should be explained and accounted for in the books of the financial year for which the due date inventory.


Section 4


Valuation of assets and liabilities and determination of financial results

Art. 28. [inventory on the last day of the financial year] 1. Assets and liabilities are measured at least at the balance sheet date as follows:

1) tangible and intangible assets - at cost or production cost, or revalued (after revaluation of fixed assets), net of depreciation or amortization, and write-offs due to permanent impairment;

1a), real estate and intangible assets classified as investments - according to the rules applicable to fixed assets and intangible assets referred to in paragraph 1, and Article. 31, Art. 32 paragraph. 1-5 and art. 33 paragraph. 1 or according to the market price or otherwise determined fair value;

2) fixed assets under construction - at total costs directly related to their acquisition or construction, less accumulated impairment losses;

3) shares in other entities and other than those referred to in paragraph 1a of investments classified as current assets - acquisition cost less accumulated impairment losses, or at fair value or adjusted purchase price - if the asset has been defined term maturity; the value of the purchase price can overestimate the value of the market price, and the difference from the revaluation accounted for in accordance with Article. 35 paragraph. 4;

4) shares in subsidiaries classified as non-current assets - according to the rules specified in paragraph 3 or the equity method, provided that it will apply uniformly to all subsidiaries;

5) Short-term investments - at cost (value) of market or purchase price or the price (value) of the market, depending on which one is lower or amortized cost - if the asset has been defined maturity, and short-term investments for which no active market exists, otherwise determined fair value;

6) tangible assets - the purchase price or manufacturing costs not higher than their net selling price at the balance sheet date;

7) receivables and loans - the amount due, with the prudence principle, subject to Section 7a;


7a) receivables and loans classified as financial assets may be valued at amortized cost, and if the company intends to sell them for up to three months, according to market value or otherwise determined fair value;

8) The obligations - the amount payable, subject to paragraph 8a;

8a) financial liabilities be measured at amortized cost, and if the company intends to sell them for up to three months, according to market value or otherwise determined fair value;

9) provisions - in reasonable, reliably estimated value;

9a) shares (stocks) - at cost;

10) capital (funds), with the exception of shares (stocks), and other assets and liabilities - at face value.

2. The purchase price referred to in paragraph. 1, the purchase price of the assets, including the amount due to the seller, without deductible tax on goods and services and excise duty, in the case of imports increased by public charges and increased costs directly related to the purchase and adaptation of the asset to a condition for use or placing on the market, including the costs of transport, loading, unloading, storage and marketing, and reduced by discounts, rebates, other similar reductions and recoveries. If it is not possible to determine the cost of an asset, in particular, accepted free of charge, including donated - the valuation made according to the sales price of the same or similar object.

2a. In cases of purchase of shares (stocks) by way of execution, the acquisition cost is the cost determined in the enforcement proceedings, plus costs incurred in the enforcement proceedings, which have not been returned to the company. In the case of gratuitous acquisition of shares (stocks) purchase price includes all costs incurred by the company for their purchase.
3
. The manufacturing cost of the product includes the costs directly attributable to a given product or reasonable portion of costs indirectly related to the manufacture of the product. Direct costs include the value of direct materials used, the cost of acquisition and processing directly related to production and other costs incurred in bringing the product to its present location and condition as at the valuation date. Reasoned, appropriate to the period of manufacture of the product, part of the indirect costs include variable production overheads and that part of fixed indirect production costs, which correspond to the level of such costs at normal capacity utilization. The normal level of capacity utilization is considered average, in line with expectations in typical conditions, the volume of production for a given number of periods or seasons, taking into account the planned renovations. If it is not possible to determine the cost of manufacturing the product, its valuation is done by the net selling price of the same or similar product, less the average achieved the sales gross profit, and in the case of the product in the course - also taking into account the degree of processing.

The production costs of the product does not include costs:

1) as a consequence of low production or production losses;

2) general and administrative, which they are not associated with bringing the product to its present location and condition as at the valuation date;

3) storage of finished products and semi-finished products, unless those costs are necessary in the production process;

4) the cost of product sales.

These costs affect the financial result of the reporting period in which they are incurred.

4. In cases justified by an essential, long-term preparation of a product or a product to sell, or a long period of manufacture of the product, the purchase price or the cost of production can be increased by the cost of servicing the debt incurred to finance the supply of goods or products during their preparation for sale or production and related differences Foreign exchange, net of income therefrom.

4a. In the event that the annual financial statements not subject to auditing and publication in accordance with Art. 64 paragraph. 1 is calculating the cost of manufacturing the product in accordance with paragraph. 3, the unit can be added to the direct costs, indirect costs associated with the manufacture of the product, regardless of the level of capacity utilization. Determined in this way, the production cost can not be higher than the net sales price.


5. For the price (value) of net sales of the asset shall be realizable at the balance sheet date price of the sale, net of tax on goods and services and excise tax, net of rebates, discounts and other similar reductions and costs associated with the adaptation of the asset for sale and making the sale, and plus due related subsidy. If it is not possible to determine net selling price of the asset must be another way to determine its fair value on the balance sheet date.

6. The fair value is the amount for which an asset could be exchanged, or a liability settled at arm's length transaction between knowledgeable, willing, unrelated parties. The fair value of financial instruments traded on an active market is the market price less the costs associated with conducting the transaction if the amount was significant. The market price of financial assets held by the entity and financial liabilities that the entity intends to incur, is reported to the market, current bid price, while the market price of financial assets that the company intends to acquire, and financial liabilities is reported on the current market offer.

7. Impairment occurs when there is a high probability that controlled by the asset does not bring in the future a substantial part or all of the anticipated economic benefits. This justifies the revaluation write-off the feeding value of the asset resulting from the accounting records to the net sales price, in the absence thereof - to set the estimated fair value.

8. The purchase price and the cost of fixed assets under construction, fixed assets and intangible assets includes all costs incurred by the entity for the construction, installation, adjustment and improvement to the balance sheet date or acceptance for use, including:

1) non-deductible value-added tax and excise duties;

2) the cost of servicing liabilities incurred to finance and related foreign exchange differences, net of income therefrom.

8a. The adjusted purchase price of financial assets and financial liabilities is the purchase price (value), in which a financial asset or financial liability was first introduced to the books of accounts, reduced by the repayment of the nominal value, respectively, adjusted for the cumulative amount of the discounted difference between the initial component and its value at maturity, calculated using the effective interest rate and reduced by write-downs.

9. Deposits for which the risk is borne by policyholders are measured by life insurance undertaking according to fair values ​​at the balance sheet date. The difference between the fair value and the purchase price or production cost of these investments respectively increase or decrease the technical provisions of life, where the investment risk is borne by the policyholder. The fair value of the property determines valuer at least every 5 years. If it is not possible to determine the fair value of investments other than real estate, their valuation is based on the purchase prices or production costs. The fair value of real estate located abroad and foreign financial instruments is determined according to the rules in force in their country of origin.

10. In property and casualty insurance is allowed to use discounting or deductions only in determining the provision for capitalized value of annuities, life assurance provisions, provisions for life insurance where the investment risk (investments) borne by the policyholders and provisions for bonuses and rebates (discounts) for the insured in connection with the achieved income from investments covering these provisions.

11. At the date of acquisition or establishment recognized in the accounts of acquired or created:

1) The inventory of tangible assets - the purchase price or production cost;

2) receivables and liabilities, including loans - at face value.

12. The provision of paragraph. 11 Section 2 does not apply to banks.

Art. 28a. [Unit micro] Unit Micro does not measure assets and liabilities at fair value and adjusted cost of acquisition.

Art. 28b. [Units exempt from the provisions of the Act] 1. Units that for the previous year did not exceed at least two of the following three values:

1) 17 000 000 zł - in the case of the total balance sheet assets at the end of the year,

2) 34 000 000 zł - in the case of net revenues from sales of goods and products for the financial year


3) 50 people - in the case of average employment in FTE

- May not apply regulations issued pursuant to art. 81 paragraph. 2 Section 4

2. The provision of paragraph. 1 shall not apply to entities referred to in Article. 3 paragraphs. 1e points 1-6, and micro units.

Art. 29. [Valuation at net selling prices] 1. If the going concern assumption, referred to in art. 5 paragraph. 2, is not justified, the valuation of assets of the company after the sales prices net realizable value is not higher than the purchase price or production cost, less accumulated depreciation or amortization and write-downs for impairment. In this case, the entity is also required to create a provision for anticipated additional costs and losses due to dropping or losing the ability to continue its operations.

2. Valuation at prices net sales and the creation of reserves occur in particular on the eve of putting an entity in liquidation or bankruptcy at the end of the financial year, if the date of approval of the financial statements for the fiscal year unit will continue operations at the end of the financial year attributable to the time the duration of the liquidation or bankruptcy, as well as on the eve of the transfer, the distribution or sale of the unit, if the corresponding agreement provides for the adoption as a basis for settlement of the assets determined on the assumption that economic activity will continue through the unit.

2a. The difference is the result of the valuation and the creation of the reserve referred to in paragraph. 1, affects the capital (fund) from revaluation.
3
. Opening of restructuring or change of the legal form of the entity do not constitute an obstacle to the recognition that the activity will continue.

Art. 30. [Assets and liabilities denominated in foreign currencies] 1. At least at the balance sheet date are valued in foreign currencies:

1) assets (excluding shares in subsidiaries under the equity method) and liabilities - by the valid average exchange rate announced for a given currency by the Polish National Bank, subject to paragraph 2;

2) cash located in entities engaged in the purchase and sale of foreign exchange - the exchange rate, which was followed by the purchase, but not in excess of the average exchange rate on the valuation date for a given currency by the Polish National Bank.

2. Denominated in foreign operations are recorded in the accounting books at the date of their execution - unless separate provisions on the funds from the budget of the European Union and other countries of the European Economic Area and of the non-recoverable, from foreign sources not otherwise - the following exchange rates:

1) actually applied on that date, resulting from the nature of the operation - in the case of sale or purchase of currencies and payment of receivables and payables;

2) the average announced for a given currency by the National Polish Bank on the day preceding the day - in the case of payment of receivables or liabilities, if it is not justified to apply the exchange rate referred to in paragraph 1, as well as for other operations.
3
. Where assets and liabilities are denominated in currencies for which the Polish National Bank does not announce the exchange rate, the rate of exchange is determined in relation to the indicated by the reference currency, whose exchange rate is announced by the Polish National Bank.

4. Exchange rate differences on long-term investments denominated in foreign currencies arising on the date of their valuation, are accounted for in the manner specified in Article. 35 paragraph. 2 and 4. Foreign exchange differences, subject to paragraph. 5-7, on the other assets and liabilities denominated in foreign currencies arising on the date of their valuation and the payment of receivables and liabilities in foreign currencies, as well as the sale of foreign currencies, are recognized as income or financial costs and, where appropriate - to the cost of production products, or the purchase price of goods, as well as the purchase price or production cost of fixed assets, fixed assets under construction or intangible assets.

5. The resulting at the valuation date and exchange differences on investments covering technical provisions, life insurance companies and reinsurance undertakings which conduct reinsurance business in the reinsurance of life insurance include income or investment charges and exhibit in the technical life insurance account.


6. The resulting at the valuation date and exchange differences on investments covering technical provisions in the section on investment funds capitalized value of pensions and provisions for bonuses and rebates, insurance property and casualty and reinsurance undertakings which conduct reinsurance business in the reinsurance property and casualty insurance include income or investment charges and exhibit in the technical account of life insurance.

7. The resulting valuation date exchange differences on receivables and liabilities arising from insurance and reinsurance are included in other income or technical costs, net of reinsurance.

Art. 31. [Valuation of assets] 1. The initial value of the price of acquisition or production cost of a fixed asset in the cost of the improvements, which consists of reconstruction, expansion, modernization or reconstruction and causing the value in use of this measure after the completion of improvements exceeds possessed on admission to use utility value, measured period of use, the ability of manufacturing, product quality achieved with the help of improved asset, operating costs or other measures.

2. The initial value of fixed assets - with the exception of land not intended to extract minerals by opencast - reduce the depreciation or amortization made to reflect impairment, the use or the passage of time.
3
. The initial value and has so far made on fixed assets depreciation or amortization may, on the basis of separate provisions, subject to revaluation. Established as a result of the revaluation of the net book value of the asset should not be higher than its fair value, a write-off for the foreseeable period of its further use is economically justified.

4. The resulting due to the revaluation of the difference of the net value of fixed assets referred to in paragraph. 3, refers to capital (fund) from revaluation, and it can not be distributed. Share capital (fund) from revaluation shall be subject to art. 32 paragraph. 5, reducing the difference from the revaluation of the previously updated sold or liquidated fixed assets. This difference affects the capital (fund) or any other of a similar nature, unless separate regulations provide otherwise.

Art. 32. [Depreciation] 1. depreciation or amortization of the asset made by systematic and planned distribution of its initial value for a set period of depreciation. Depreciation commences no earlier than after the adoption of fixed asset and its completion - no later than the date of leveling the value of depreciation or amortization of the value of the asset or destination for liquidation, sale or found to be missing, possibly including expected at liquidation sale price net residual asset.

2. In determining the depreciation period and the annual depreciation rate takes into account the economic useful life of the asset to determine which particularly affect:

1) the number of changes that can run the asset;

2) the pace of technological and economic progress;

3) the performance of the asset measured by the number of hours of operation or the number of products manufactured or other appropriate measure;

4) legal or other restrictions on the frequency of use of the asset;

5) the expected liquidation of the net selling price of a substantial residual asset.
3
. On the day of the adoption of the fixed asset should be fixed period or the rate and method of its depreciation. The useful lives and depreciation rates of fixed assets should be periodically reviewed by the unit, causing a corresponding adjustment made in subsequent financial years of depreciation.

4. In case of change of production technology, destination for liquidation, withdrawal from use or other reasons causing impairment of the asset shall be carried out - in other operating expenses - appropriate write-down of its value.

5. Write-downs referred to in paragraph. 4, relating to fixed assets, the valuation of which has been updated on the basis of separate regulations, reduce recognized in equity (fund) from revaluation differences due to revaluation. Any excess write-off referred to in paragraph. 4, the differences from revaluation are included in other operating expenses.


6. For fixed assets with low initial value can be set depreciation or amortization in a simplified way, by making collective write-downs for groups of similar type and purpose, or one-off writing off the value of these assets.

Art. 33. [valuation of intangible assets] 1. The valuation of intangible assets and ways of making them of depreciation or amortization, the provisions of art. 31 paragraph. 2 and art. 32 paragraph. 1-4 and mouth. 6.

2. Costs of research and development conducted by the entity for its own needs, incurred prior to the production or use of technology is one of the intangible assets if:

1) the product or production technology are strictly determined, and the corresponding development costs are reliably identified;

2) The technical suitability of the product or technology has been established and appropriately documented, and on this basis, the unit decided to manufacture these products or the use of technology;

3) development costs will be covered, according to projections, revenues from the sale of these products or the use of technology.
3
. The costs referred to in paragraph. 2, are amortized over their useful economic life outcomes of development work. If, in exceptional cases, can not be reliably estimated economic useful results of completed research and development, the period of amortization does not exceed 5 years.

4. Goodwill is the difference between the purchase price of a particular entity or its organized part and the lower of the fair value of net assets acquired. If the purchase price of an entity or its parts is less than the fair value of the net assets acquired, the difference is negative goodwill. Principles of accounting and writing off goodwill or negative goodwill is determined art. 44b paragraph. 10-12.

Art. 34. [The valuation principles] 1. The units can measure:

1) materials and goods - at cost,

2) products during production - in the amount of direct production costs or only direct materials or not measured at all

- If it does not distort the balance of assets and earnings of the individual. The rules referred to in paragraph 2 may not be used for the production of the expected completion longer than three months, intended for sale or for fixed assets under construction units. It does not apply to agricultural production.

2. Tangible assets can be the date of acquisition or production recognized in the books at prices accepted into the register, taking into account differences between those prices and the actual prices of their acquisition or purchase of, or the cost of production. At the balance sheet value of tangible assets, expressed in prices registration, is brought to the level specified in paragraph. 1 or in Article. 28 paragraph. 1, item 6 does not apply to finished products, work in progress and semi-finished products, if their records are used budgeted costs, including normative differences between the planned and actual costs of production are negligible. Used to measure the balance sheet date of the purchase price or purchase, or the projected production costs can not be higher than the net selling price of the ingredients.
3
. Produced by the movies, computer software, typical projects and other items of similar nature held for sale are measured at the period when it economic benefits, no more than 5 years, in the amount of excess production costs over revenues by net selling prices, obtained from the sale of these products during this period. Nieodpisane after that period manufacturing costs increase other operational costs.

4. If the purchase price or the purchase or production costs equal or deemed to be the same, because of the similarity of their nature and purpose are different, the value of the final state of tangible assets are valued according to the adopted by the method of determining the value of their expenditures, including consumption, sales:

1) according to average prices, it is set in the amount of the weighted average price (cost) of the asset;

2) assuming that the outflows of the asset is measured at the price (cost) of these assets that the entity purchased (manufactured);

3) assuming that the outflows of assets are valued at the price (cost) of these assets, which the company acquired at the latest (manufactured);

4) by way of a detailed identification of the actual price (cost) of these assets, which relate to specific project, regardless of their date of purchase or production.


5. Write-downs of tangible assets made in connection with the loss of their value and the resulting valuation of the net selling price instead of purchase price or the purchase or production costs - are included in other operating expenses.

Art. 34a. [Determination of revenue] 1. Revenue from uncompleted services, including construction under the contract, during the implementation period longer than 6 months, carried on the balance sheet date to a large extent, is determined by the balance sheet date in proportion to the degree of completion, if this degree as well as estimated total costs of the service for the whole period of its implementation, can be reliably estimated.

2. Revenue from uncompleted services, including construction, in the period from the date of the agreement until the balance sheet - net income, which affected the financial result in previous reporting periods - determined in proportion to its severity. The degree of completion is measured according to the method adopted by the entity:

1) share of costs incurred from the date of the agreement until the date of determination of income in the total cost of the service,

2) the number of hours of direct execution services

3) based on an assessment of performed works

4) another method

- If express a credible degree of completion.
3
. If the service contract, including construction, provides that the price for this service shall be determined:

1) the amount of costs plus a profit margin - is revenue from uncompleted service shall be equal to the costs of the performed part of the service, plus a profit margin;

2) in the amount of a lump sum - it's revenue from uncompleted services is determined in proportion to the stage of the service, as long as the degree of completion at the balance sheet date may be determined reliably.

4. If the stage of completion of the services, including the construction, or the projected total cost of implementation can not be on the balance sheet date, determined in reliably, revenue is recognized at the amount incurred in the given reporting period, but not higher than the costs which cover the future by the employer is likely.

5. Regardless of the method used for determining income for financial result affected by expected losses associated with the provision of the service covered by the contract.

Art. 34b. [Costs of production] 1. Production costs that are directly attributable to revenues recognized by the body affect the financial result for the reporting period in which they were incurred.

2. Production costs that can only be indirectly assigned to revenues or other benefits acquired by the body affect the financial result in the part, which relate to the reporting period, ensuring that they match revenues or other economic benefits.

Art. 34c. [Services unfinished] 1. Production costs of unfinished services, including construction, include costs incurred from the date of conclusion of the contract to the balance sheet date. Costs incurred prior to the conclusion of the contract related to the subject matter thereof, are recognized as assets if the coverage in the future the cost of revenue from the employer is likely.

2. If the revenues are determined according to the stage of completion of the service in a manner other than specified in Article. 34a paragraph. 2 point 1, the costs affecting the financial result determined in a part of the total cost of the contract, which corresponds to the degree of completion, after the deduction of expenses that affected the financial result in previous reporting periods, taking into account the losses referred to in Article. 34a paragraph. 5. The difference between the costs actually incurred and costs affecting the financial result are included in accruals.
3
. The appropriateness of the methods of determining the degree of service, as well as the expected total costs and revenues of the service should be by an individual, not later than at the balance sheet date and verified. The reason for the verification of the adjustments affect on the financial result of the reporting period in which the verification was carried out.

Art. 34d. [Application of provisions] The provisions of Article. 34a and 34c may not be applied if the share of revenues from services in progress at the balance sheet is not significant in the total operating income of the reporting period.


Art. 35. [Impairment] 1. acquired or incurred financial assets and other investments are recognized in the books at their acquisition or creation, according to the purchase price or purchase price, if the costs of execution and settlement of transactions are not significant.

2. Impairment expressing the impairment of investments classified as current assets shall be made not later than the end of the reporting period.
3
. The effects of an increase or decrease in the value of short-term investments valued at cost (value) market includes income or financial costs. If you use other than those specified in art. 28 paragraph. 1 point 5 of the rules for the valuation of short-term investments, the effects of a reduction in their value are included in financial expenses in the full amount, while the impact of the increase in their value are included in financial income in an amount not greater than the amount previously written off differences in financial costs.

4. The effects of the revaluation of investments classified as current assets other than those referred to in Article. 28 paragraph. 1 point 1a, which increase their value to the level of market prices, increase capital (fund) from revaluation. Lowering the value of investments previously revalued to the amount by which increased on this account capital (fund) from revaluation, if the amount of the difference from the revaluation was not settled until the date of valuation, reduces the capital (fund). In other cases, the effects of a reduction in the value of investments classified as financial costs. The increase in the value of the investment directly binding to the prior reduction of its value, financial costs, are recognized to the amount of these costs as financial income.

5. If the value of investments deemed to have disposed of assets previously been revalued or valued at the price (value) of the market, or the purchase price, depending on which of them was lower, while the effects of such valuation recognized in the manner specified in paragraph. 4, the revaluation surplus is determined and accounted capital (fund) from revaluation.

6. Investments classified as non-current assets on the date of their reclassification to short-term investments are measured:

1) the book value or the purchase price, depending on which one is lower - if short-term investments are valued at market value or purchase price, depending on which one is lower;

2) The book value - if short-term investments are valued at market value.

If reclassified long-term investment was previously revalued and the revaluation effects are recognized in equity (fund) from revaluation, is unsettled at the reclassification surplus on revaluation of long-term investments are classified as financial costs or income.

7. Short-term investments at the date of their conversion to long-term investments are valued according to the rules set out in paragraph. 6, except that if the short-term investment was valued at the market, despite its reclassification valuation remains unchanged.

8. If the purchase price equal or deemed to be the same, because of the similarity of type and purpose, investment components are different, their disposal is measured according to the method chosen by the unit of the methods referred to in Article. 34 paragraph. 4 points 1-3.

Art. 35a. [Financial instruments] 1. On the day of conclusion of the contract, the issuer or the issuer of a financial instrument is introduced into the accounts issued or issued by one another instrument, as well as the components of the instrument properly classified as equity (funds) as equity instruments or short-term liabilities and long-term well when a component having the nature of the obligation is not a financial liability.

2. Differences from revaluation of financial instrument, as well as income earned or expenses incurred pursuant to the qualifications of a financial instrument referred to in paragraph. 1, respectively impact on earnings or capital (fund) from revaluation.
3
. Contracts for financial instruments is considered to limit the risks associated with the assets or liabilities of the entity, ie. Protecting those assets or liabilities, if at least:

1) before the conclusion of the contract established its purpose and determined which assets or liabilities to be with this contract secured;

2) securing financial instrument which is the subject of the contract and secured by means of its assets or liabilities are characterized by similar features, especially nominal value, maturity date, the impact of changes in interest rates or currency exchange rate;


3) the degree of certainty of expectations regarding anticipated as a result of the contract cash flows is significant.

4. If the conditions referred to in paragraph. 3 are met, the valuation of hedged assets or liabilities are taken into account the value of purchased to hedge financial instruments and changes in their value.

Art. 35b. [Making of write-downs] 1. The value of receivables based on the probability of their payment by revaluation write-off in respect of:

1) receivables from debtors in liquidation or bankruptcy, and in respect of which proceedings have been opened restructuring or submitted for approval of the procedure for approval of the system - the amount of receivables not covered by a guarantee or other collateral reported to the liquidator or judge-in bankruptcy or placed in the list of claims in restructuring proceedings;

2) receivables from debtors in case of dismissal of the bankruptcy petition if the debtor's assets is not enough or just enough to cover the costs of bankruptcy proceedings - in the full amount of receivables;

3) receivables questioned by debtors and whose payment the debtor is in arrears, and according to the assessment of economic and financial situation of the debtor repayment of receivables in the contractual amount is not probable - the amount not covered by a guarantee or other collateral;

4) charges the equivalent of amounts increasing the receivables for which revaluation write - in these amounts until they are received or written off;

5) receivables overdue or not overdue with a significant probability of defaults, according to the kind of business or client structure - the amount of reliably estimated write-off, including general for bad debts.

2. Impairment losses on receivables are charged to other operating expenses or financial expenses - depending on the type of receivables for which a write-off.
3
. Receivables are subsequently written-off reduce the write-downs.

4. Receivables referred to in paragraph. 3, from which no write-downs or write-offs made in the full amount are classified as other operating expenses or financial costs.

Art. 35c. [Termination of the reason for a write-down] In the case of cessation of the reason for which a write-down the value of assets, including write-off of impairment losses, the equivalent of the whole or part of the previous revaluation charge increases the value of the asset and is recognized as other operating revenues or financial revenues.

Art. 35d. [Provisions] 1. Provisions are created for:

1) certain or highly probable future liabilities that can be reliably estimated, particularly for losses on pending economic transactions, including losses on guarantees, warranties, credit operations, results of pending litigation;

2) future liabilities resulting from restructuring, if under separate regulations the company is obliged to carry out or to enter into the binding agreement and the restructuring plans allow to reliably estimate the value of future liabilities.

2. Provisions referred to in paragraph. 1, classified as other operating costs, financial costs or extraordinary losses, depending on the circumstances to which the future obligations.
3
. The creation of the liability previously established reserve, reduces reserve.

4. Unused reserves, compared to a reduction or cessation of risk justifying their creation, increase per day, which turned out to be unnecessary, respectively, other operating income, financial income and extraordinary gains.

Art. 36. [Equity (funds)] 1. Equity (funds) are recognized in the accounting books by type and in accordance with legal regulations, the provisions of the statute or agreement to set up a unit.

2. The share capital of capital companies, mutual insurance companies, reinsurance companies mutual share fund of cooperative disclosed in the amount specified in the agreement or articles of association and entered in the court register. Declared but not paid capital contributions are recognized as outstanding share capital contributions.

2a. (Repealed)


2b. Issuance costs incurred by setting up a joint stock company or increasing the share capital reduce the company's supplementary capital to the amount of surplus emission values ​​of the nominal value of shares, and the remaining amount is recognized as financial costs.

2c. Equity (funds) resulting from the conversion of debt securities, liabilities and loans into shares is recognized in the nominal value of these securities, liabilities and loans, net of unamortized discounts or premiums, interest accrued and unpaid to the date of the conversion, which will not be paid, unrealized foreign exchange differences and capitalized issuance costs. If debt securities, liabilities and loans are denominated in foreign currency, on the day of conversion apply to them the provisions of Article. 30.

2d. Liabilities unconditionally decommitted as a result of restructuring proceedings the provisions of para. 2c shall apply accordingly.

2e. In the case of adoption of a resolution of the shareholders of a limited liability determining the timing and amount of payments, the equivalent payments are recognized as a separate item liabilities (reserve capital subsidies shareholders) and are recorded as a component of equity until will not be used in a manner justifying the write-off ; enacted but not transferred payments are shown in the additional equity item "Due payments to the capital reserve (negative)".
3
. The constituents of capital (fund) units in liquidation or bankruptcy should be, at the date of liquidation or bankruptcy proceedings, combined into one capital (fund), reducing it:

1) (repealed)

2) in limited liability companies, mutual insurance and reinsurance mutual societies - of its own shares;

3) in joint stock companies - for unpaid capital, unless summoned the parties concerned to bring them, as well as treasury stock.

4. The provision of paragraph. 3 can be appropriately applied by the entities concerned restructuring.

Art. 36a. [The sale and redemption of shares] 1. In the case of sale of shares, the positive difference between the selling price, less costs to sell, and their purchase price, please refer to the supplementary capital. Negative differences should be recognized as a reduction of capital, and in the rest of the negative difference, in excess of capital, as a loss from previous years and described in the notes to the financial statements for the year in which the sale took place.

2. In the case of redemption of own shares, the positive difference between their nominal value and the purchase price, please refer to the supplementary capital. Negative differences should be recognized as a reduction of capital, and in the rest of the negative difference, in excess of capital, as a loss from previous years and described in the notes to the financial statements for the year in which the share capital was decreased.
3
. The provisions of paragraphs. 1 and 2 shall apply to own shares of the company with limited liability, with the exception of redemption of shares without reducing the share capital. In the case of redemption of own shares acquired by execution, without reducing the share capital, the value of its own shares at the purchase price should be recognized as a reduction of capital reserve created in order to redeem them.

Art. 37. [Reserve] 1. In connection with the temporary differences between the book value of assets and liabilities and their tax value and tax loss deductible in the future, the Company creates a provision and establishes deferred income tax, which is a taxable person.

2. The tax base of an asset is the amount which reduces the income tax base for the obtaining of them, directly or indirectly, economic benefits. If obtaining economic benefits from certain assets does not cause the reduction of the tax base, the tax value of assets is the book value.
3
. The tax value of liabilities is their book value reduced by the amount, which in the future will reduce the income tax base.

4. Deferred income tax in the amount of expected future income tax deduction in respect of deductible temporary differences which result in the future reduction of the tax base and tax loss deduction, determined taking into account the precautionary principle.


5. The deferred income tax is established in the amount of income tax payable in the future in respect of taxable temporary differences, ie differences that will increase the tax base in the future.

6. The amount of reserves and assets for deferred income tax is determined using the income tax rates applicable in the year of the tax obligation.

7. The reserve and deferred tax assets are recorded separately. Reserve and assets can be compensated if the entity has the legal rights allowing it to them when calculating the amount of tax liability.

8. Affecting the financial result of the income tax for the reporting period include:

1) part of the current;

2) deferred.

Recognized in the profit and loss account the deferred part constitutes the difference between the state of reserves and assets for deferred tax at the end and the beginning of the reporting period, taking into account the provisions of paragraph. 9.

9. Provisions and deferred income tax related to operations settled with equity (fund) own, also applies to capital (fund).

10. Units that for the previous year did not exceed at least two of the following three values:

1) 17 000 000 zł - in the case of the total balance sheet assets at the end of the year,

2) 34 000 000 zł - in the case of net revenues from sales of goods and products for the financial year

3) 50 people - in the case of average employment in FTE

- May waive the assets and deferred income tax.

11. The provision of paragraph. 10 does not apply to entities referred to in Article. 3 paragraphs. 1e points 1-6.

Art. 38. [Technical provisions] 1. Insurance include operating expenses change in technical provisions, which should ensure full coverage of current and future liabilities that may arise from insurance and reinsurance contracts.

1a. Reinsurance undertakings are among the operating costs of changes in technical provisions, which should ensure full coverage of current and future liabilities that may arise from reinsurance contracts.

2. Technical provisions, with the exception of equalization provisions shall be no later than at the balance sheet date. The equalization reserve shall be established no later than the last day of the fiscal year.

Art. 39. [Accrued expenses] 1. The units make prepayments if they relate to future reporting periods.

2. Entities shall recognize accrued expenses in the amount of probable liabilities in the current reporting period, arising in particular:

1) benefits to the Company by its business partners, and the liability can be measured reliably;

2) the obligation to, related to current activities, future employee benefits, including pension benefits, as well as the future benefits against unknown persons, which amount can be reliably estimated, although the date of the commitment is not yet known , including for warranty repairs and warranty for products sold long-term use.

Liabilities recognized as accrued and principles of establishing their amount should result from a recognized shopping habits.

2a. The obligations referred to in paragraph. 2, point 2, are shown in the balance sheet as provisions for liabilities.
3
. Prepayments and accrued expenses can take place in accordance with the passage of time or the amount of benefits. The time and manner of settlement should be justified by the nature of the expense, with the principle of prudence.

4. According to the contract value received financial assets is lower than the commitment to pay for them, including the title issued by the securities, the difference is active accruals, which are written off in the financial costs in equal installments during the period, for which the commitment was made.

5. Liabilities recognized as accrued expenses reduce the reporting period in which it was determined that the liabilities did not arise.

Art. 40. (repealed)

Art. 41. [Deferred income] 1. Deferred income, carried out prudently include, in particular:

1) the equivalent of received or due from business partners of the benefits that will be performed in future reporting periods;


2) cash received to finance the acquisition or production of fixed assets, including fixed assets under construction or development work, if in accordance with other laws they do not increase equity (funds). Included in deferred revenue amounts gradually increase other operating income, parallel to depreciation or amortization of fixed assets and development expenses funded from these sources;

3) negative goodwill, as referred to in Article. 33 paragraph. 4 and art. 44b paragraph. 11.

2. The provision of paragraph. 1 point 2 shall apply to the accepted free of charge, including by way of donation, fixed assets under construction, fixed assets and intangible assets.
3
. Banks show as deferred revenue is also due to the interest on non-performing loans - until they are received or written off.

Art. 42. [The net financial result] 1. The entities other than banks, insurance and reinsurance undertakings on the net financial result includes:

1) The operating result, including other operating income and operating costs;

2) the result of financial operations;

3) (repealed)

4) mandatory charges the financial result of the income tax, the taxpayer is an individual, and equivalent payments on the basis of separate regulations.

2. Operating profit is the difference between net revenues from sales of products, goods and materials, including grants, discounts, rebates and other increases or decreases, net of tax on goods and services and other taxes directly related to turnover and other operating income and the value of sales products, goods and materials priced in the cost of production or acquisition cost, or purchase, plus the expenses incurred since the beginning of the financial year, general administrative costs, sales of products, goods and materials and other operating costs.
3
. Result on financial operations is the difference between financial income, in particular from dividends (share in profit), interest, gains on sale and revaluation of investments other than those referred to in Article. 28 paragraph. 1 point 1a, surplus of foreign exchange gains over losses, and financial costs, particularly interest income, loss on disposal and revaluation of investments other than those referred to in Article. 28 paragraph. 1 point 1a, the surplus of negative exchange rate differences over positive, with the exception of interest, commissions, positive and negative exchange differences referred to in Article. 28 paragraph. 4 and mouth. 8 Section 2

4. (Repealed)

Art. 43. [The net financial result in the banks] 1. The banks on the net financial result includes:

1) The operating result (including the banking business);

2) the result of extraordinary operations;

3) the mandatory burden the financial result of the income tax, the taxpayer is an individual, and equivalent payments on the basis of separate regulations.

2. Banking activity result includes: net interest income, commission income from shares and other securities, the result of financial operations, net foreign exchange gains.
3
. The net operating result includes the banking operations, adjusted for the difference between other operating income and other operating costs, operating costs, depreciation of fixed assets and intangible assets, net provisions revaluation.

4. The result of extraordinary operations is the difference between profits and extraordinary losses.

Art. 44. [The net financial result in insurance] 1. insurance and reinsurance companies on the net financial result includes:

1) The technical result of insurance;

2) the difference between revenues and costs from investment activities not counted in the technical result of insurance;

3) the difference between other revenues and other costs;

4) the result of extraordinary operations;

5) compulsory burden the financial result of the income tax, the taxpayer is an individual, and equivalent payments under separate regulations.

2. Underwriting result is the difference between revenues from contributions, other revenues technical and paid compensation, benefits and changes in technical provisions, taking into account the reinsurers' share of premiums, claims and changes in technical reserves of insurance and the costs of insurance and other technical costs. Where:

1) income from investments are designed in accordance with separate regulations to increase reserves


2) undertaking carrying on insurance business in the life insurance or reinsurance undertaking conducting reinsurance business in the reinsurance of life insurance invest a total own funds and resources covering technical provisions

- Income and charges shall be disclosed in the technical account of insurance.
3
. On the difference between other revenues and other costs consist in particular the difference between:

1) other financial income and other financial costs;

2) other operating income and other operating costs;

3) revenues and costs arising from duty emergency commissioner.

4. To the extraordinary profit or loss applicable provision of Article. 43 paragraph. 4.



Chapter 4a

A merger

Art. 44a. [Day of the merger] 1. A merger of trade, hereinafter referred to as "companies" are accounted for and recognized at the date of the merger in the accounts of the company, which goes assets of the merging companies (the acquiring company) or a new company, the merged company ( newly established) - using the purchase method, referred to in art. 44b, subject to paragraph. 2.

2. In the event of a merger, due to which there is no loss of control over them by their former shareholders, you can use the method of pooling of interests referred to in Article. 44c; in particular, the merger of subsidiaries directly or indirectly from the same parent company, as well as in the event of a merger of the parent lower level of the subsidiary.
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. The date of the merger is the day the merger is registered competent for the seat respectively of the acquiring company or the newly formed company.

Art. 44b. [Settlement of merger using the purchase method] 1. Settlement of merger using the purchase method involves adding up the individual assets and liabilities of the acquiring company, at their book value, the corresponding assets and liabilities of the acquired company at their fair value at the date of the call.

2. The assets and liabilities of the acquired company on the date of the merger also include assets or liabilities that are not at so far in the accounting records and financial statements of the acquired company if the merger occurs disclosure and they meet the definition of assets and liabilities.
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. Share capital (fund) of the acquired company determined on the date of the merger as net assets at fair value is excluded.

4. The fair value of certain assets or liabilities assumed in a particular case:

1) Listed securities - current market price less costs to sell;

2) unlisted securities - estimated value, taking into account factors such as price to earnings ratio and dividend yield comparable securities issued by companies with similar characteristics;

3) receivables - present value (discounted) of the amounts due for payment, determined at appropriate current interest rates, less allowances for doubtful debts and bad debts and possible cost recovery. Determining the value of the current (discounted) for short-term receivables is not necessary if the difference between the value of receivables in the amount in and by their discounted value is not important;

4) The stocks of finished products and goods - net selling price less the rebate profit margin resulting from the cost of supply by the acquiring company to sell stock or find a buyer;

5) inventories of work in progress - the net selling price of finished goods less the cost of completion of production and discount profit margins due to the costs of bringing the acquiring company inventories to sales or find a buyer;

6) inventory of materials - the current purchase price;

7) of fixed assets - market value or the value of an independent valuation. In case it is not possible to obtain an independent valuation of fixed assets - current purchase price or cost of manufacture, and given the current degree of wear;

8) intangible assets - estimated value, determined based on market prices for the same or similar intangible assets and goodwill or negative goodwill included in the balance sheet of the acquired company - zero. If the estimated value can not be determined based on market prices, it is assumed a value which will not create or increase negative goodwill from the merger;


9) The obligations - the present value (discounted) of the amounts due for payment, determined at appropriate current interest rates. Determining the value of the current (discounted) for short-term liabilities is not necessary if the difference between the value of liabilities at amounts that require payment and according to their discounted value is not important;

10) reserves or assets for deferred income tax - value possible for the implementation of the combined company after taking into account changes in the tax and accounting net assets of the acquired company.

5. Through the acquisition price is meant for:

1) when the merger appears (flashing) shares - the market price of the shares or otherwise set their fair value if it is not known their market price. In this case, the excess of the market value of the shares or otherwise determined their fair value are included in the supplementary capital. The market price published (issued) shares shall be taken from the date on which all the relevant terms of the merger, including the exchange ratio of the shares, have been announced. If the market price during this period changed significantly, then the market price, you can take the average market price in the month before and the month following the date of the announcement of all the essential conditions of the merger;

2) acquisition of own shares in order to connect - the price of acquisition of own shares;

3) acquisition of the shares of the acquired company - purchase price of these shares;

4) when the purpose of the merger shall be paid in a form other than that specified in points 1-3 - the fair value of the subject of payment;

5) when the purpose of the merger shall be paid in various forms - the sum of the respective values ​​referred to in paragraphs 1-4.

6. The excess of the acquisition referred to in paragraph. 5, over the fair value of net assets acquired is recognized in the assets of the company to which the assets of the merged companies or companies merged, as goodwill.

7. When the connection is the result of several successive transactions, the price of the acquisition, the fair value of the net assets of the acquired company in a percentage reflecting the percentage of acquired rights to the net assets and the difference of the acquisition of the fair value of the net assets of the acquired company are determined separately at the date of each significant transaction, assuming that the first significant transaction was carried out no later than the date of a relationship of subordination between the acquiring company and the acquired company. The final price of the acquisition, the fair value of the net assets of the acquired company and the difference in price over the fair value of net assets acquired at the merger date is the sum of the respective sizes of the various significant transactions.

8. The carrying amount of assets and liabilities at the date of merger is adjusted in subsequent reporting periods, if as a result of the events or the information obtained to determine the fair value at the merger date was incorrect. In such cases, you should make an appropriate adjustment to goodwill or negative goodwill, provided that the unit provides for the recovery value resulting from the adjustment of future economic benefits and that adjustment is made during the year in which the business combination. Otherwise, correction of such classified as other operating income or expenses.

9. If the terms of the merger assume the possibility of adjustment of the acquisition price as a result of the occurrence of a future specified events, the correction of this taken into account when determining the cost of acquisition at the merger date, if the occurrence of future events causing price adjustment is probable and the amount of the price adjustment may be determined reliably. In the event that in subsequent reporting periods there will be no change in events conditioning the acquisition price or actual price change will be different from the estimated value, then you should make an appropriate adjustment to the acquisition price and goodwill or negative goodwill.

10. Since the company is making the depreciation period of its useful life. If you can not be reliably estimated useful economic life, the period of depreciation of goodwill can not be longer than 5 years. Depreciation is straight-line method and are included in other operating expenses.


11. Subject to paragraph. 12, the excess of fair value of net assets acquired over the acquisition price, or negative goodwill, the amount not exceeding the fair value of acquired assets, excluding long-term financial assets listed on regulated markets, the unit includes deferred income for the period being the weighted average period of economic utility acquired and depreciable assets. Negative goodwill in excess of the fair value of assets, excluding long-term financial assets listed on regulated markets, among the revenues at the merger date.

12. Negative goodwill written off in other operating income to the extent that it applies estimated in a credible future losses and expenses, as established by the acquiring company on the date of the combination that is not, however, the obligations referred to in paragraph. 2. This write-down is made in the reporting period in which the losses and costs affect the financial result. If the losses and costs have not been incurred in prior reporting periods anticipated, is on the negative goodwill written off in the manner specified in paragraph. 11.

13. In the balance sheet of the merged companies shall be off mutual receivables and liabilities and other similar accounts.

14. When the result of the merger, a new company, incorporated into the profit and loss account for the year in which the merger took place, are subject to income and expenses and profits and losses of the acquired company and the acquiring company from the merger date. In the event that the merger of the acquiring company the assets of the acquired company, switched to the profit and loss account for the year in which the merger took place, they are subject to income and expenses and profits and losses of the acquired company from the date of the merger and of the acquiring company from the beginning of the financial year. In the case before the merger merging companies were in a relationship of subordination, the net profits and losses of the acquired company achieved before the merger affect the relevant percentage, determined as the percentage controlled by the acquiring company in the period before the merger of the net assets of the acquired company, the respective positions of the equity of the acquiring company, the companies merged, including write-offs of goodwill or negative goodwill, for the period from the date of a relationship of subordination to the date of the merger.

15. The costs incurred directly in connection with the merger increase the price of acquisition. Costs incurred in the organization of the formation of a new joint stock company or the costs of share capital increase in connection to reduce the supplementary capital of the acquiring company or the company resulting from the merger, the amount of the surplus of the issue value over the nominal value of shares, and the remaining amount is recognized as financial costs.

16. The financial statements prepared at the end of the reporting period, during which there was a connection, should include comparative figures for the previous year. The comparative figures for the previous year are the data from the financial statements of the acquiring company.

Art. 44c. [Shot connection in the books] 1. Joining pooling of interests method involves adding up individual items of assets and liabilities and revenues and expenses of the merged companies as of the merger date, after bringing their values ​​to the uniform valuation methods and exclusions, which referred to in paragraph. 2 and 3.

2. The whole of the equity share capital of a company whose assets were transferred to another company or companies that the merger has been removed from the register. After this exclusion items of the company's equity, which goes assets of the merged companies or newly formed companies are adjusted by the difference between total assets and liabilities.
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. Exclusions also

1) mutual receivables and liabilities and other similar accounts of the merging companies;

2) income and expenses of business operations performed in the financial year prior to the merger between the merging companies;

3) the gain or loss of economic transactions prior to the merger between the merging companies, the values ​​contained in the subject combining assets and liabilities.

4. You can not make the exemptions referred to in paragraph. 3 points 2 and 3, if it does not affect the reliability and fairness of the financial statements, which goes assets of the merged company or the newly formed company.


5. Costs incurred in connection with the merger, including costs incurred in the organization, assuming the new company or the cost of capital increase, which goes assets of the merging companies are classified as financial costs.

6. The financial statements of the company, which goes assets of the merged companies or newly established company, prepared at the end of the reporting period, during which there was a connection, includes comparative data for the previous financial year, as defined in such a way as if the merger occurred at the beginning of the previous financial year, but the individual components of equity at the end of the previous year should be reported as the sum of the individual components of equity.

Art. 44d. [Appropriate application of] Articles. 44a-44c shall apply accordingly in the case of acquisition by the organized part of another unit, including in the event of division.


Section 5


The financial statements

Art. 45. [The term of the report and its contents] 1. The financial statements shall be prepared on the day of closure of the accounts referred to in Article. 12 paragraph. 2, and a different balance sheet date, using respectively, subject to paragraph. 1a and 1b, the principles of valuation of assets and liabilities and determining the financial result, as specified in Chapter 4.

1a. The financial statements of issuers of securities, issuers wishing to apply for or applying for admission to trading on a regulated market countries of the European Economic Area may be prepared in accordance with IAS.

1b. The financial statements included in the group in which the parent company prepares consolidated financial statements in accordance with IAS, they can be prepared in accordance with IAS.

1c. The decision on the preparation of financial statements in accordance with IAS, by the entities referred to in paragraph. 1a and 1b, take the approving authority.

1d. The approval authority may decide to discontinue the use of IAS in the preparation of financial statements by individuals in the event of termination of the circumstances referred to in paragraph. 1a and 1b.

1e. The financial statements of branches of foreign entrepreneur can be prepared in accordance with IAS, if the entrepreneur prepares financial statements in accordance with IAS.

2. The financial statements consist of:

1) balance sheet;

2) profit and loss account;

3) additional information, including introduction to the financial statements and additional information and explanations.
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. Financial statements referred to in Article. 64 paragraph. 1, subject to an annual study further includes a statement of changes in equity (fund), and in the case of investment funds - statement of changes in net assets, and cash flow statement, subject to paragraph. 3a.

3a. The financial statements of open investment fund and the financial statements of specialist open investment fund does not include the cash flow statement.

3b. The financial statements of the investment fund and alternative investment company additionally includes a summary of deposits.

3c. The financial statements of alternative investment company additionally includes a summary of additional information about the company, including information about the structure of assets and operating costs, net asset value and information on the net asset value on the right to participate and how to determine information issued by alternative investment company financial instruments or granted privileges affecting the determination of the net asset value or the rights of investors and information on preferential rights to participate, or restrict the rights resulting from them.

4. To the annual financial statements, accompanied by a report on the activities of the entity, if the obligation to draw up due to the law or other regulations.

5. The financial statements and the report on the activities of the entity shall be written in Polish and Polish currency. Figures may be reported rounded to the nearest thousand, if it does not distort the image contained in the individual financial statements and activity report.

6. The financial statements and activity reports of issuers of securities, issuers wishing to apply for or applying for admission to trading on a regulated market of countries of the European Economic Area shall be drawn up on the basis of the provisions of the Act, including the provisions on securities.

Art. 46. ​​[Balance] 1. The balance sheet shows the assets and liabilities on the last day of the current and previous fiscal year.


1a. In the case of preparing the balance sheet on a different day than the balance sheet referred to in paragraph. 1, the balance sheet shows the assets and liabilities on that day and on the last day of the fiscal year immediately preceding that date.

2. Shown in the balance sheet assets, subject to paragraph. 2a, the value of individual groups of assets based on their book value, adjusted for:

1) accumulated depreciation or amortization and impairment, including those with permanent impairment of fixed assets;

2) write-downs of tangible assets;

3) write-downs of receivables.

2a. Financial assets and financial liabilities are recognized in the balance sheet at the net after compensation, if the entity has an unconditional right to offset the assets and liabilities of the type and intends to settle on a net basis, or at the same time give a financial asset and settle the financial liability.
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. If the thought of separate provisions during the year are made deductions from the financial result of the current financial year, it must be shown with a minus sign in a separate liability item "capital (fund)," in the "Deductions from net profit during the financial year ( negative)".

4. Social benefits fund and other funds created on the basis of separate provisions, failed to equity (funds) of their own, are recognized in the balance sheet in the group of liabilities as special funds.

5. The balance sheet should contain information on the set:

1) for entities other than banks, insurance and reinsurance undertakings - in Annex 1 to the Act;

2) for banks - in Annex 2 to the Act;

3) for all insurance and reinsurance undertakings - in Annex 3 to the Act;

4) for micro units preparing simplified balance sheet - in Annex 4 to the Act;

5) for small units preparing simplified balance sheet - in Annex 5 of the Act.

Art. 47. [profit and loss] 1. In the profit and loss account showing separately income, expenses, profits and losses and obligatory charges the financial result for the current and previous financial year.

2. When you are making a profit and loss account for the different reporting period than specified in paragraph. 1, in the profit and loss account showing separately income, expenses, profits and losses and obligatory charges the financial result for the current reporting period and the corresponding period of the previous year.
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. When an entity provides for cessation of a specific range of activities affecting revenues and costs of future reporting periods, while maintaining the principle of continuity - the relevant revenue and related costs should be shown separately from income and expenses continuing operations.

3a. Established in the profit and loss account the difference between revenues and costs of micro enterprises, as referred to in Article. 3 paragraphs. 1a, point 2, increases - after approval of the annual financial statements - revenues or expenses in the next fiscal year; positive difference can be credited to an increase in capital (fund).

4. Profit and loss account should include information on the set:

1) for entities other than banks, insurance and reinsurance undertakings - in Annex 1 to the Act, the calculation variant or comparative, depending on the choice made by the head of the unit;

2) for banks - in Annex 2 to the Act;

3) for all insurance and reinsurance undertakings - in Annex 3 to the Act;

4) for micro units preparing simplified profit and loss - in Annex 4 to the Act;

5) for small units preparing simplified profit and loss - in Annex 5 of the Act, by function or comparative, depending on the choice made by the head of the unit.

Art. 48. [Notes] 1. Additional information should include relevant information and explanations necessary to ensure that the financial statements correspond to the conditions laid down in Article. 4 paragraph. 1, and in particular include:

1) introduction to the financial statements, describing the accounting principles (policy), including valuation methods and the preparation of financial statements in the extent that the law leaves the individual right to choose, and to present the causes and effects of any changes in relation to the year before;

2) additional information and explanations:

A) the balance sheet, income statement, statement of changes in equity (fund) and cash flow statement for the reporting periods covered by the financial statements,

B) the proposed distribution of profit or covering of loss,


C) basic information about employees and entity authorities,

D) other relevant information for the understanding of the financial statements.

2. The scope of the explanatory notes drawn up by entities other than banks, insurance and reinsurance undertakings set out in Annex 1 to the Act.
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. Micro entity may not make the additional information referred to in paragraph. 1, provided that he gives supplementary information to the balance sheet set out in Annex 4 to the Act.

4. The scope of disclosures for small units preparing a simplified additional information set out in Annex 5 of the Act. A small unit that does not prepare a simplified notes, draw notes in the range of not less than that specified in Annex 5 to the Act.

Art. 48a. [Statement of changes in equity (fund)] 1. Statement of changes in equity (fund) includes information on changes in individual components of equity (fund) for the current and previous fiscal year defined:

1) for entities other than banks, insurance and reinsurance undertakings - in Annex 1 to the Act;

2) for banks - in Annex 2 to the Act;

3) for all insurance and reinsurance undertakings - in Annex 3 to the Act.

2. In the case of the preparation of the statement of changes in equity (fund) for another period than specified in paragraph. 1, in the statement of changes in equity (fund) shows a change in individual items of capital (fund) for the current reporting period and the previous fiscal year.
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. Micro entity may not make a statement of changes in equity (fund) referred to in paragraph. 1.

4. Unit small can not make a statement of changes in equity (fund) referred to in paragraph. 1.

Art. 48b. [Cash flow] 1. The cash flow statement prepared using the direct method or indirect, depending on the choice made by the head of the unit shows data for the current and previous fiscal year, including information on the set:

1) for entities other than banks, insurance and reinsurance undertakings - in Annex 1 to the Act;

2) for banks - in Annex 2 to the Act;

3) for all insurance and reinsurance undertakings - in Annex 3 to the Act.

2. In the case of a cash flow statement for the different period than that specified in paragraph. 1, the cash flow statement is prepared for the current period and the corresponding period of the previous year.
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. In the cash flow statement should include all income and expenses from operating, investing and financing unit, with the exception of the receipts and expenses resulting from the purchase or sale of cash for the proper determination of the value of cash flows:

1) by operating activities is understood as a basic type of business entity and other activities not included in investing activities (investment) or financial;

2) by investing activities (tracking) is understood as the acquisition or disposal of fixed assets and short-term financial assets and all related monetary costs and benefits;

3) the financial activity is understood as the acquisition or loss of sources of financing [the changes in size and relationship capital (fund) and a foreign entity] and all related monetary costs and benefits.

4. Micro entity may not make cash flow, referred to in paragraph. 1.

5. Small unit can not make the cash flow statement, referred to in paragraph. 1.

Art. 49. [The report on the activities of the unit] 1. In the case of companies, companies limited by shares, mutual insurance companies, mutual insurance undertakings, cooperatives, state-owned enterprises, as well as those of partnerships and limited partnerships, where all members having unlimited liability company with share capital , limited joint-stock company or from other countries with a similar legal form of the companies, and in the case of specialized open investment funds, closed-end investment funds and alternative investment companies, unit manager shall, together with the annual financial report of the entity.

2. The report on the activities of the unit should include important information about the property status and financial situation, including an evaluation of achieved results, identification of risk factors and hazard, in particular information about:


1) events significantly affecting the activity of the individual, which occurred in the financial year and after its completion, the date of approval of the financial statements;

2) the anticipated development of the individual;

3) major achievements in the field of research and development;

4) current and expected financial situation;

5) own shares, including:

A) the reason for the acquisition of own shares made in the financial year

B) the number and nominal value of purchased and sold shares in the financial year, in the absence of nominal value - book value, as well as part of the share capital that these shares represent

C) in the case of acquisition or disposal for - the equivalent of these shares

D) the number and nominal value of all shares acquired and retained, in the absence of nominal value - book value, as well as part of the share capital that these shares represent;

6) held by the branches (plants);

7) financial instruments in the field:

A) risk: price risk, credit risk, material disruptions to cash flow and liquidity risks to which the entity is exposed,

B) the entity's objectives and methods of financial risk management, including methods of securing the planned transactions for which hedge accounting is applied.

8) (repealed)

2a. Report on the activities of the issuer whose securities are admitted to trading on a regulated market of the European Economic Area should also include - as a separate part - a statement of corporate governance, which define the scope of the regulations issued pursuant to art. 60 paragraph. 2 of the Act of 29 July 2005. On Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies (Dz. U. of 2013. Pos. 1382 with 2015. Pos. 978, 1260 and 1844 and 2016. pos. 615) or regulations issued pursuant to art. 61 of this Act.

2b. Report on the activities of specialized open investment funds, closed-end investment funds and alternative investment companies should include, taking into consideration art. 105 Delegated Regulation (EU) No 231/2013 of 19 December 2012. Supplementary Directive of the European Parliament and of the Council 2011/61 / EU as regards exemptions, the general arrangements for business, depositors, financial leverage, transparency and oversight (Acts . office. EU L 83, 22.3.2013, p. 1), relevant information about the property status and financial situation of these units, including an evaluation of achieved results, identification of risk factors and hazard.
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. The report on the activities of the unit should also include - as far as is relevant to the assessment of the units - and non-financial indicators, including information on environmental issues and employment, as well as additional explanations of amounts reported in the financial statements.

4. Micro entity referred to in Article. 3 paragraphs. 1a, point 1 and section. 1b, which is obliged to prepare a report on the activities of the entity in accordance with paragraph. 1, can not prepare this report, provided that the additional information, and in the case referred to in Article. 48 paragraph. 3, as supplementary information to the balance sheet, will present information concerning the acquisition of shares (stocks) as defined in Annex 4 to the Act.

5. A small unit, which is obliged to prepare reports in accordance with paragraph. 1, can not prepare this report, provided that the notes will present information concerning the acquisition of own shares referred to in paragraph. 2 points 5.

6. A small unit may not have a report on the activities of non-financial indicators, and information on environmental issues and employment, as referred to in paragraph. 3.

Art. 49a. [The financial statements drawn up by the micro] It is assumed that the financial statements prepared by the micro using art. 46 paragraph. 5 Section 4, Art. 47 paragraph. 4 Section 4, Art. 48 paragraph. 3, Art. 48a paragraph. 3, Art. 48b paragraph. 4 or art. 49 paragraph. 4 and present fairly the financial position and results of operations of this unit.

Art. 50. [detail of information in the financial statements] 1. The information contained in the financial statements may be reported with greater detail than specified in the Annexes to the Act, if it follows the needs and specifics of the individual.

2. (Repealed)

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. Where information relating to individual items of the financial statements did not occur in the unit both in the financial year and for the year preceding the year, is preparing the financial statements these items are omitted.

4. (Repealed)

Art. 51. [Aggregate accounts] 1. The body, which is composed of organizational units which prepare independent financial statements, prepares combined financial statements, being the sum of the financial statements and all its branches (plants), excluding respectively

1) assets and segregated funds;

2) mutual receivables and liabilities and other similar accounts;

3) income and expenses from operations carried out between the entity and its branches (establishments) or between its branches (establishments);

4) the result of economic operations carried out inside the unit, included in the assets of the entity or its branches (plants).

You can not make the exemptions referred to in paragraphs 2-4, if it does not affect negatively the fulfillment of the obligations set out in Article. 4 paragraph. 1.

2. To the financial statements, which includes branches (factories) outside the Polish territory and there preparers, turns on the relevant data resulting from the balance sheets of these branches (plants), denominated in foreign currencies, translated into the Polish currency at the prevailing at balance sheet date, the average rate announced for a given currency by the Polish National Bank, and the profit and loss account - are translated at the average exchange on the last day of each month of the financial year, in justified cases - a rate which is the arithmetic mean of the average exchange rates on the last day of the previous year and the last day of the current fiscal year, announced for a given currency by the Polish National Bank. Resulting from the conversion differences are recognized in the combined financial statements under the heading "Currency translation differences" as a component of equity (fund) from revaluation.

Art. 52. [term report] 1. The head unit provides preparation of the annual financial statements no later than within 3 months from the date of the balance sheet and submit it to the competent authorities, in accordance with the individual provisions of the law, the provisions of the statute or agreement.

2. The financial statements signed by the - at the same time giving the date of the signature - the person entrusted with bookkeeping, and head of the unit, if the unit directs the body Multiplayer - all members of this body. Refusal to sign requires written justification attached to the financial statements.
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. The provisions of paragraphs. 1 and 2 shall apply accordingly also to

1) The financial statements as at the date referred to in Article. 12 paragraph. 2 or other balance sheet date;

2) report on the activities of the entity referred to in Article. 49, except that it does not sign the person entrusted with bookkeeping.

Art. 53. [Approval of accounts] 1. The annual financial statements, subject to paragraph. 2b, subject to approval by the approving authority, not later than 6 months from the balance sheet date. Before approving the annual financial statements of the entities referred to in Article. 64, shall be tested in accordance with the principles set out in Chapter 7.

2. (Repealed)

2a. The provision of paragraph. 1 does not apply to individuals in respect of which has been declared bankrupt.

2b. The annual financial statements of the branch of a foreign entrepreneur shall be deemed approved if it has been approved financial statements of a foreign business, including the data of the financial statements of the branch.
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. Division or cover the net financial entities are obliged, in accordance with Article. 64 paragraph. 1 to submit to examination of the annual financial statements may be made after the approval of the financial statements by the approving authority, preceded by the expression of the auditor's opinion on these financial statements without reservation or with reservations. Division or cover the net financial result, made without such a condition is invalid under the law.

4. Division or cover the net financial result of individuals not obliged to undergo examination of the annual financial statements may be made after the approval of the financial statements by the approving authority.

5. Copies of the financial result of the current financial year, including the payment of the profit made on the basis of separate regulations are considered to be the division of net profit entities in the financial year.


Art. 54. [Change report] 1. If after the preparation of the annual financial statements and before approving it, the unit received information about events that have a significant impact on the financial statements, or make the assumption of continued activity of the unit is not justified, it should amended the report, while making the appropriate entries in the books of account, the financial statements concerned, and notify the auditor who report examines or examined. If the events that occurred after the balance sheet date, do not change the existing situation at the balance sheet date, the corresponding explanation shall be included in the notes.

2. If the unit has received information about the events referred to in paragraph. 1, after approval of the annual financial statements, their effects are recognized in the accounting year in which the information is received.
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. If in a given year, or before the financial statements for the fiscal year unit said occurred in the previous financial years error, the result of which can not be considered financial statements for the year or the previous years to meet the requirements set out in Article. 4 paragraph. 1, the amount of the adjustment due to the removal of this error refers to capital (fund) and shows as "profit (loss) from previous years."


Chapter 6


The consolidated financial statements of the group

Art. 55. [Consolidated Financial Statements] 1. The parent company, having its registered office or place of business in the territory of the Republic of Polish, draw up the annual consolidated financial statements of the group, including the data of the parent company and its subsidiaries at all levels, regardless of their geographical location, summarized in such a way as if the group was one entity; This report also includes data other subsidiaries, in accordance with the principles set out in this chapter.

2. The consolidated financial statements consist of:

1) the consolidated balance sheet;

2) of the consolidated profit and loss account;

3) the consolidated statement of cash flows;

4) the consolidated statement of changes in equity (fund);

5) additional information, including introduction to the consolidated financial statements and notes and explanations.

2a. To the annual consolidated financial statements, accompanied by a report on the activities of the group, prepared respectively according to the requirements referred to in Article. 49 paragraph. 2-3, except that in the case of the information referred to in Article. 49 paragraph. 2 Section 5 should be given information about the shares held by the parent company, entities in the group and persons acting on their behalf. The report on the activities of the group can be prepared together with a report on the activities of the parent company as a single report.
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. The consolidated financial statements are also different balance sheet date, if such obligation results from separate regulations.

4. If the provisions of this Chapter do not provide otherwise, to prepare consolidated financial statements, the provisions of Chapters 4, 4a and 5.

5. The consolidated financial statements of issuers of securities, mentioned in art. 4 of Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002. On the application of international accounting standards (Acts. Office. EC L 243, 11.09.2002, p. 1; Acts. Office. Polish Edition special, ch. 13, v. 29, p. 609, as amended. d.), and banks are prepared in accordance with IAS.

6. The consolidated financial statements of issuers of securities wishing to apply for or applying for admission to trading on a regulated market countries of the European Economic Area may be prepared in accordance with IAS.

7. The consolidated financial statements of the dominant downstream included in the group, the parent of senior prepares consolidated financial statements in accordance with IAS, can be prepared in accordance with IAS.

8. The decision on the preparation of consolidated financial statements in accordance with IAS by entities referred to in paragraph. 6 and 7, take the approving authority of the parent company.

9. The approving authority of the parent company may decide to discontinue the use of IAS in the preparation of consolidated financial statements by the unit in the event of termination of the circumstances referred to in paragraph. 6 and 7.


10. The provisions of paragraphs. 9 shall apply to non-bank entities referred to in paragraph. 5.

Art. 56. [exemption from the obligation to report] 1. The parent company may not present consolidated financial statements if the balance sheet date of the financial year and the balance sheet date of the year preceding the year combined data of the parent company and all subsidiaries at all levels:

1) before consolidation eliminations referred to in Article. 60 paragraph. 2 and 6, do not exceed at least two of the following three values:

A) 38 400 000 zł - in the case of the total balance sheet assets at the end of the year,

B) 76 800 000 zł - in the case of net revenues from sales of goods and products for the financial year

C) 250 people - in the case of average employment in full-time equivalents;

2) after consolidation eliminations referred to in Article. 60 paragraph. 2 and 6, do not exceed at least two of the following three values:

A) 32 000 000 zł - in the case of the total balance sheet assets at the end of the year,

B) 64 000 000 zł - in the case of net revenues from sales of goods and products for the financial year

C) 250 people - in the case of average employment in FTE.

1a. A parent that is exempted from presenting consolidated financial statements in accordance with paragraph. 1 point 1 or 2, you lose that right if the balance sheet date of the financial year and the balance sheet date of the year preceding the year exceeded the two set out in paragraph. 1 point 1 or 2 sizes, with effect for the current financial year.

2. The parent company, subsidiary of another entity, having its registered office or place of business in the territory of the European Economic Area, may not present consolidated financial statements if:

1) the parent senior owns 100% of the unit, where they are not taken into account the shares in the entity held by members of its administrative, management or supervisory law or in respect of the obligations set out in its memorandum or articles or

2) the parent senior has at least 90% of the shares of the unit, and the other shareholders of the entity approved the decision to niesporządzaniu consolidated financial statements.

2a. The provision of paragraph. 2 shall apply, subject to the following conditions:

1) the parent senior will include both consolidated subsidiary of the parent niesporządzającą consolidated financial statements and all of its subsidiaries to be consolidated by the parent company with regard to the provisions of Article. 57 and Art. 58;

2) The manager of the parent company niesporządzającej consolidated financial statements fulfill the obligation specified in art. 69 paragraph. 4;

3) the parent niesporządzająca consolidated financial statements disclose in the notes the information listed in Annex 1 to the Act in the "Notes" in the paragraph. 6 points 4.

2b. In the case referred to in paragraph. 2a point 1, the consolidated financial statements of the parent company of senior prepared in accordance with the laws of the State of the European Economic Area, which governs, or IAS.
3
. The parent company may not present consolidated financial statements as if all its subsidiaries are excluded from their inclusion in the consolidation pursuant to Art. 57 or art. 58.

4. The provision of paragraph. 1 shall not apply if the parent company or its subsidiary is an entity referred to in Article. 3 paragraphs. 1e points 1-6.

5. The provision of paragraph. 2 shall not apply if the parent is an issuer of securities admitted to trading on a regulated market of the European Economic Area.

Art. 57. [Exclusion of consolidation] Consolidation can not include a subsidiary if:

1) the shares of this entity were acquired, purchased or acquired in another form, with the sole purpose to their subsequent resale, within one year from the date of purchase, purchase or acquire in any other form;

2) there are serious long-term restrictions in exercising control over the entity, which exclude the free disposal of its net assets, including developed by the unit of net income, which exclude or exercising control over the bodies directing the entity;


3) without disproportionate expense or without undue delay can not obtain the information necessary for the preparation of the consolidated financial statements, and may be applicable in exceptional cases, which will be properly documented.

Art. 58. [Exemption from consolidation] 1. The consolidation can not include the subsidiary if the financial data of this subsidiary are immaterial for the implementation of the obligation in Article. 4 paragraph. 1.

2. If two or more subsidiaries meets the criteria referred to in paragraph. 1, but the aggregate data are relevant to the fulfillment of the obligation referred to in Article. 4 paragraph. 1, then these units should be included in the consolidation.

Art. 59. [Consolidation methods] 1. The subsidiary is consolidated using the full consolidation referred to in Article. 60.

2. Data jointly controlled entities are recognized in the consolidated financial statements using the proportional method, referred to in art. 61, or the equity method, as referred to in Article. 63.

2a. If a partner in a jointly controlled entity which is a parent company preparing consolidated financial statements shows the jointly controlled entities using the proportional method, the provisions of art. 56 sec. 3, Art. 57 and Art. 58 shall apply accordingly.
3
. Shares in associate recognized in the consolidated financial statements using the equity method.

4. If the group's entities subject to consolidation, hold shares in joint ventures, the data of these units includes the consolidated financial statements using the method of proportionate or equity method.

5. If the group's entities subject to consolidation, hold shares in associates, the data of these entities is recognized in the consolidated financial statements using the equity method. Where these associates draw up consolidated accounts, the equity method was applied to the net assets reported in the consolidated financial statements.

6. If the conditions referred to in Article. 57 point 2, and the subsidiary was previously consolidated or parent successor to significant investor or partner in a jointly controlled entity, the data of these entities is recognized in the consolidated financial statements using the proportionate or equity method.

Art. 60. [Full consolidation method] 1. Full consolidation method consists in summing up, the full value individual items of financial statements of the parent company and subsidiaries, exclusions referred to in paragraph. 2 and 6, and other adjustments referred to in paragraph. 8-9.

2. Off shall be expressed in the purchase price value of shares held by the parent company and other consolidated entities in subsidiaries, including the portion at fair value of net assets of subsidiaries, which corresponds to the share of the Parent Company and other units of the Capital Group consolidated the subsidiaries for the date of commencement of exercising control over them. If the value of shares held and the corresponding portion of net assets of subsidiaries, measured at their fair values ​​differ, then, subject to paragraph. 3 and 4:

1) the excess of the value of the shares over the corresponding portion of net assets at their fair values ​​- the value of the company, are recognized in the assets of the consolidated balance sheet as a separate item of fixed assets as "Goodwill of subsidiaries";

2) the excess of the corresponding portion of net assets at fair value over the value of shares - negative goodwill recognized in liabilities in the consolidated balance sheet as a separate item "Negative goodwill of subsidiaries."
3
. If control over a subsidiary arises or is strengthened as a result of several significant transactions or the transactions occur at significant intervals, the differences referred to in paragraph. 2, shall be determined on each day of acquisition of the shares of individual parts, the first shall be set no later than the date of a relationship of subordination of the individual.

4. In the event of changes in the percentage share of the parent company or group in the net assets of the subsidiary as a result of issue (issue) shares, resulting in this respect the difference referred to in paragraph. 2, shall be fully revenues or financial costs.

5. For determining the basis for the valuation of net assets at fair value and accounting for goodwill or negative goodwill applies the principles set out in Article. 28 paragraph. 5 and art. 44b paragraph. 4, 11 and 12.

6. The following items are also in full:


1) mutual receivables and liabilities and other similar accounts of consolidated entities;

2) revenues and costs of economic transactions between consolidated entities;

3) gains or losses resulting from economic transactions between consolidated entities, included in the value of consolidated assets;

4) dividends accrued or paid by subsidiaries to the parent company and other entities covered by consolidation.

7. You can not make the exemptions referred to in paragraph. 6, if they are not relevant for the fulfillment of the obligation referred to in Article. 4 paragraph. 1.

8. If during the financial year were sold shares in a subsidiary in the consolidated income statement shows:

1) The operating results achieved by the subsidiary until the sale of shares by the parent company or other entity covered by the consolidation;

2) result from the disposal of shares in a subsidiary, established as the difference between the income from the sale of shares and the corresponding part of the net assets of the subsidiary, adjusted for nieodpisaną goodwill or negative goodwill relating to the sold shares.

9. Shares in the equity of subsidiaries belonging to persons or entities other than consolidated, are shown in a separate item in the consolidated balance sheet liabilities, the equity as "Minority interests". The initial value of the capital shall be equal to the corresponding fair value of net assets at the date of commencement of control. This value increases or decreases respectively by changes in net assets of subsidiaries. Attributable to other persons or entities not covered by consolidation of gains or losses are recognized in the consolidated profit and loss item "Net financial result" as "Gains (losses) of minority shareholders", with the adjustment of net referred to in paragraph. 6 points 4. If the loss of subsidiaries attributable to minority interests exceed the amount of guarantee cover them, their surplus is settled with equity capital group.

Art. 61. [proportionate consolidation method] 1. Application of the method of proportional consolidated financial statements is the individual items of the financial statements of a partner jointly controlled entity, the full value of part of the value of individual items of financial statements of joint ventures, in proportion to the units held by the consolidated group shares exclusions referred to in paragraph. 2 and 6, and other adjustments referred to in paragraph. 8.

2. Off shall be expressed in the purchase price value of shares held by the parent company and other consolidated entities in joint ventures with the part, at fair value of net assets of joint ventures, which reflects the parent and other Group entities, subject to consolidation in jointly controlled entities at date of commencement of joint control. If the value of shares held and the corresponding portion measured at their fair values, net assets of the jointly controlled entities are different, then, subject to paragraph. 3 and 4:

1) goodwill recognized in the assets of the consolidated balance sheet as a separate item of fixed assets as "Goodwill of subsidiaries";

2) negative goodwill recognized in the liabilities of the consolidated balance sheet as a separate item, as "Negative goodwill of subsidiaries."
3
. If joint control over the entity interdependent arises or is strengthened as a result of several significant transactions or the transactions occur at significant intervals, the differences referred to in paragraph. 2, shall be determined on each day of acquisition of the shares of individual parts, with the first set at a date when the relationship of subordination.

4. In the event of changes in the percentage share of the parent company or group in the net assets of the jointly controlled entity, as a result of issue (issue) shares, resulting in this respect the difference referred to in paragraph. 2, shall be fully revenues or financial costs.

5. For determining the basis for the valuation of net assets at fair value and accounting for goodwill or negative goodwill applies the principles set out in Article. 28 paragraph. 5 and art. 44b paragraph. 4, 11 and 12.

6. The following items are also respectively in full amounts or proportionally to the partner jointly controlled entity shares:

1) mutual receivables and liabilities and other similar accounts of the entities included in the consolidated financial statements;


2) revenues and costs of economic transactions between entities included in the consolidated financial statements;

3) gains or losses resulting from operations between entities included in the consolidated financial statements included in the value of consolidated assets;

4) dividends accrued or paid by the interdependent its members and other entities covered by the consolidated financial statements.

7. You can not make the exemptions referred to in paragraph. 6, if they are not relevant for the fulfillment of the obligation referred to in Article. 4 paragraph. 1.

8. If during the financial year were sold the shares in the joint venture, in the consolidated income statement shows:

1) The operating result achieved by the jointly controlled entity until the date of disposal of shares by a shareholder jointly controlled entity or other entity covered by the consolidated financial statements in proportion to the shares sold;

2) result from the disposal of shares in a jointly controlled entity, established as the difference between the income from the sale of shares and the corresponding part of the net assets of the jointly controlled entity, adjusted for nieodpisaną goodwill or negative goodwill relating to the sold shares.

9. It has no equity interest in the jointly controlled entities, including gains (losses), net, belonging to persons or entities other than the partner jointly controlled entity and capital group entities.

Art. 62. (repealed)

Art. 63. [Determination of the value of the equity method] 1. The equity method involves reporting in fixed assets of the balance sheet item "Investments in subsidiaries are valued using the equity method" in the purchase price plus or minus, attributable to the parent company, partner jointly controlled entity or significant investor increase or decrease in equity subsidiary that occurred since the date of taking control, obtain joint control or significant influence to the balance sheet date, including the reduction of settlements with the owners of that share in the profit (loss) subsidiary adjusted by the write-off of goodwill or negative goodwill, with the principles referred to in Article. 44b paragraph. 10, 11 and 12, and a copy of the difference in the valuation of net assets at their fair values ​​and book values, for a given reporting period.

2. When using the equity method in the income statement shows, in a separate item in the share of profit (loss) subsidiary. With profit (loss) subsidiary off assets included in gains or losses arising from transactions made between entities covered by the financial statements and given a subordinate entity, in proportion to their shareholding.
3
. The equity method does not apply in cases referred to in Article. 57 and can not be used in cases referred to in Article. 58.

Art. 63a. [Exclusion of application of the equity method] In the case of impairment of shares in subsidiaries, determined on the date of acquisition of shares of goodwill or negative goodwill shall be written off to the profit and loss respectively in an amount equal to the difference between the current value of the shares and their value determined after taking into account permanent loss values.

Art. 63b. [The adoption of a uniform accounting policy] 1. Units whose data are included in the consolidated financial statements, in particular, subsidiaries and jointly controlled entities should apply the same methods of valuation of assets and liabilities and the preparation of financial statements in accordance with accepted accounting principles (policy), the parent company of subject to paragraph. 2.

2. If it is not possible for important reasons apply the same methods of valuation and preparation of financial statements or if the parent company prepares financial statements in accordance with IAS, and individuals whose data are covered by the consolidated financial statements do not prepare financial statements and consolidated financial statements in accordance with IAS, the make the appropriate transformation of the financial statements of those entities whose financial data are essential for the fulfillment of the obligation referred to in Article. 4 paragraph. 1.
3
. (Repealed)


Art. 63c. [The adoption of a single balance sheet date] 1. The financial statements referred to in Article. 55 paragraph. 1, drawn up on the same balance sheet date and for the same financial year as the financial statements of the parent company. If the same balance sheet date can not be accepted by the various entities of the group is a consolidation can include financial statements for other annual period than a year, provided that the balance sheet date of these financial statements fall no earlier than 3 months before the date of the balance sheet adopted for group. This also applies to the financial statements, for which the equity method.

2. The parent company prepares consolidated financial statements, no later than within 3 months from the balance sheet date on which the parent company prepares annual financial statements.
3
. The consolidated financial statements signed by the head of the parent company and other persons responsible for the preparation of this report. The provision of Article. 52 paragraph. 2 shall apply accordingly.

4. The annual consolidated financial statements is subject to approval by the approving authority of the parent, not later than 6 months from the date of the balance sheet, which should prepare the annual financial statements of the parent company.

Art. 63d. [The financial statements of public companies] consolidated financial statements and the reports on the activities of groups of companies, where the parent undertakings are issuers of securities admitted issuers intending to apply for or applying for admission to trading on the regulated market of one of the countries of the European Economic Area, draw under the provisions of the law, including regulations on securities trading.


Chapter 6a


Report on payments to government

Art. 63e. [Definitions] Any reference in this section refers to:

1) an entity operating in the extractive industries - mean the entity engaged in the business of exploration, exploration, discovery, exploitation and mining of deposits of minerals, oil, natural gas and other raw materials, as part of economic activities listed in Section B Chapters 05-08 Polish Classification of Activities;

2) unit dealing with the logging of primary forests - mean the entity engaged in the activities referred to in section A, division 02, group 02.2 Polish Classification of Activities, in the areas of primary forests;

3) primary forest - it means the forest with native species, where there is no clearly visible indication of human activity and the ecological processes are not significantly disturbed;

4) public administration - mean the government or local authorities and entities supervised or controlled by those authorities, in the case of the other countries of the European Economic Area or countries outside the European Economic Area - state administration bodies, regional or local countries of the European Area economic or countries outside the European economic Area and entities supervised or controlled by those authorities;

5) Project - shall mean the operations conducted under the agreement, in particular, rent, lease, license or concession, the basis of obligations to the government of each country; if several such agreements with each other significantly related, the operations carried out on the basis thereof shall be considered as a single project;

6) payments - shall mean the amount paid in cash or in kind, of the activities referred to in paragraph 1 or 2, with the title:

A) receivables from production

B) taxes on income, production or profits of corporations excluding consumption tax, such as value-added tax, income tax from individuals or sales tax

C) royalties,

D) dividends

E) license fees and bonuses for the discovery and production

F) license fees, rents, charges for start-ups and other benefits arising from the grant of a license or concession

G) payments for improvements in infrastructure;

7) payments related - it means the agreement provided for periodic payments or installments;

8) statement of payment - shall mean the report payments to the government.


Art. 63f. [Report a unit operating in the extractive industry dealing with the logging of primary forests] 1. The active in the extractive industry or individual engaged in the logging of primary draw up the balance sheet date, together with the annual financial statements, the report of the payment, if:

1) unit, referred to in art. 3 paragraphs. 1e point 1-6, which is a corporation, limited joint-stock company or such a general partnership or limited partnership, which all members having unlimited liability company with share capital, limited joint-stock company or from other countries with a similar legal form of the companies, or | ||
2) a corporation, partnership limited by shares or such a general partnership or limited partnership, which all members having unlimited liability company with share capital, limited joint-stock company or from other countries with a similar legal form of the company, provided that financial year for which it prepares financial statements, and in the year preceding the year exceeds at least two of the following three values:

A) 85 000 000 zł - in the case of the total balance sheet assets at the end of the year,

B) 170 000 000 zł - in the case of net revenues from sales of goods and products for the financial year

C) 250 people - in the case of average employment in FTE

- And if the single payment or the total payments made by the associated unit accounted for in the financial year at least equivalent to the amount of 424 700 zł.

2. In the statement of payment are recognized in respect of the financial year, the following information:

1) the total amount of payments made to the government of the country concerned, broken down into payments to the appropriate levels of government;

2) the total amount of payments broken down by titles referred to in Article. 63e point 6 made to the appropriate level of public administration of the country concerned;

3) where payments have been attributed by the individual to a specific project - the total amount of payments made in respect of each project, together with the division titles payments referred to in Article. 63e paragraph 6.
3
. The provision of paragraph. 2 Section 3 does not apply to payments made by the entity in connection with the requirements imposed at the level of this unit. In this case, the payment may be presented at the individual level, not at project level.

4. In the statement of payment can not take into account individual sum payment or payment related, lower than indicated in paragraph. 1 value. Payments or activities can not be artificially separated or aggregated in order to avoid their disclosure in the statement of payment.

5. In the case of payment in kind, in the statement of payment recognized their value, if possible - also in natural units, together with the method of its determination.

Art. 63g. [Consolidated statement of payments] 1. The body referred to in Article. 63f paragraph. 1, the parent undertaking referred to in Article. 55 paragraph. 1 prepares the consolidated statement of payments in accordance with art. 63f paragraph. 2-5.

2. The provision of paragraph. 1 shall apply to the parent company referred to in Article. 55 paragraph. 1, if it fulfills the conditions in art. 63f paragraph. 1 point 1 or 2 and any of its subsidiaries is a unit operating in the extractive industry or entity engaged in the logging of primary forests, and a single payment or the total payment made related by its subsidiary accounted for in the financial year at least equivalent to the amount of 424 700 zł.
3
. Consolidated statement of payments data includes the parent company and at all levels dependent on it. Consolidated statement of payment may not cover the unit data, which was not consolidated on the basis of art. 57.

4. For the consolidated statement of payment, the provisions of art. 63c. 2 and 3.

Art. 63h. [Exemption from the obligation to draw up a report of payments] 1. The body referred to in Article. 63f paragraph. 1, which is a subsidiary may not report their payments, if its parent company having its registered office or place of business in the territory of the European Economic Area prepares the consolidated statement of payments in accordance with the laws of the State of the European Economic Area, which is subject to, and payments made by the subsidiary to the public are included in the consolidated statement of payment.


2. The parent company may not report their payments, if it prepares the consolidated statement of payments in accordance with the principles set out in Article. 63g, and payments made by the parent company to the public are included in the consolidated statement of payment.
3
. Entity referred to in Article. 63g mouth. 1, the parent downstream can not make consolidated payments, if its parent senior resident or place of business in the territory of the European Economic Area prepares the consolidated statement of payments in accordance with the laws of the State of the European Economic Area, which is subject to, and payments made by the parent lower tiers of public administration are included in the consolidated statement of payment.

Art. 63i. [Report payments or consolidated payment deemed equivalent to that of the Union] units referred to in Article. 63f paragraph. 1 or art. 63g mouth. 1, which draw up and publish a report on payments or consolidated statement of payments in accordance with the laws of a country outside the European Economic Area approved by the European Commission as equivalent to EU rules may not apply the provisions of the Act in the preparation of these reports, on condition that a report on payments or consolidated payment in the relevant court register.

Art. 63j. [Application of the provisions of the Act] to report payments and the consolidated statement of payment, the provisions of art. 52 paragraph. 1 and 2, except that no sign of the person entrusted with bookkeeping.


Chapter 7


The study, submitting to the relevant register court, sharing and publication of accounts

Art. 64. [reports audited and announcing] 1. Study subject to the annual consolidated financial statements of capital groups and annual financial statements - continuing operations:

1) banks, insurance and reinsurance undertakings;

1a) cooperative savings and credit unions;

2) units operating under the provisions on trading in securities and regulations on investment funds and managing alternative investment funds and the entities referred to in Article. 2 paragraphs. 2b;

2a) units operating on the basis of regulations on the organization and functioning of pension funds;

2b) national payment institutions and electronic money institutions;

3) joint-stock companies, with the exception of companies that are on the balance sheet date in the organization;

4) other entities, which in the preceding financial year for which financial statements and fulfilled at least two of the following conditions:

A) the average annual employment in full-time equivalents amounted to at least 50 people,

B) the total balance sheet assets at the end of the financial year amounted to the equivalent in Polish currency at least 2 500 000

C) net revenue from sales of goods and products and financial operations for the year amounted to the equivalent in Polish currency at least 5 000 000.

2. The units preparers combined financial statements referred to in Article. 51 paragraph. 1, the conditions set out in paragraph. 1 shall apply to the total annual financial statements.
3
. Study subject to the financial statements of the recipient companies and newly established companies, prepared for the year in which the merger took place, and the annual financial statements prepared in accordance with IAS.

4. The study is also subject to an annual combined financial statements of the investment fund with sub-funds and the annual report of individual sub-funds.

5. (Repealed)

6. (Repealed)

Art. 64a. (Repealed)

Art. 64b. (Repealed)

Art. 65. [Opinion and the auditor's report] 1. The aim of the audit of financial statements is to express the auditor's written opinion with a report on whether the financial statements truly and fairly present the financial position and results of operations of the audited entity in accordance with the applicable provisions of the Act and adopted rules (policies).

2. The opinion referred to in paragraph. 1, should in particular state whether the financial statements:

1) have been prepared from properly maintained accounting records;

2) (repealed)

3) comply as to form and content with the applicable entity laws, statute or agreement.

4) (repealed)
3
. The document should also


1) inform the representatives violate, before expressing an opinion as referred to in Article. 69 and 70 obligations submit to the competent court register, and to the announcement of the financial statements for the year or years preceding financial year;

2) indicate the identified during the investigation of serious threat to the continuation of the business entity;

3) indicate whether the information contained in the report on the activities include the provision of Article. 49 paragraph. 2 and are consistent with the information contained in the annual financial statements;

4) to make a statement in the light of the knowledge of the entity and its environment obtained during the test stated in the report on the activities of significant distortions, and indicate what they are;

5) indicate whether the issuer is obliged to make a statement on Corporate Governance entered into in this statement the information required in accordance with the scope specified in the implementing rules pursuant to Article. 60 paragraph. 2 of the Act of 29 July 2005. On Public Offering, Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies, or in the regulations issued under Art. 61 of this Act, and with regard to the information referred to in those provisions or regulations - to determine whether they comply with applicable regulations and with the information contained in the annual financial statements.

4. The opinion should clearly state the reasons for expressing objections to the financial statements, negative opinion or a disclaimer of an opinion, because of the existence of circumstances preventing its wording. Reservations should be expressed in a manner indicating their scope.

5. The report referred to in paragraph. 1, should show in particular:

1) general characteristics of the unit (the identity of the unit);

2) obtain a statement from the unit requested information, clarifications and statements;

3) an assessment of the accuracy of the accounting system;

4) characteristics of the item or group of items of financial statements, in the opinion of the auditor, they require discussion;

5) a statement of compliance by the bank to the rules in force in the field of precautions, specific regulations and validated to determine capital adequacy ratio;

5a) a statement of compliance with the cooperative savings and credit cash to the applicable rules on precautions specified in separate regulations and validated to determine capital adequacy ratio;

6) a statement on the establishment of the insurance technical reserves in the amount of ensuring the full meet the current and future liabilities arising from insurance contracts and reinsurance contracts, and protection of these reserves deposits, according to the provisions of the business of insurance and reinsurance activity as well as the accuracy of the calculation of the solvency margin and have financial coverage of the margin;

6a) a statement by the establishment of reinsurance technical provisions of providing complete fulfillment of current and future liabilities arising out of reinsurance contracts, and protection of these reserves deposits, according to the provisions of the reinsurance business, as well as the accuracy of calculation of the margin solvency and have financial coverage of the margin;

7) presentation of the economic and financial standing and earnings units, with an indication of the phenomenon, which in comparison with the previous reporting periods have a significant negative impact on the situation, and particularly threaten the continuation of the business unit. If in the course of research units auditor finds significant, affecting the financial statements, violation of the law, statutes or articles of association, it should inform the report and, if necessary, in the opinion.

6. Opinion and a report should be drawn from the collected and developed in the course of the examination audit documentation. They should allow the auditor, niebiorącemu participate in the study, tracing its course and finding justification for the opinion expressed on the audited financial statements.

7. The opinion and report on the financial statements signed by the key auditor conducting the audit.

8. The provisions of paragraphs. 1-7 shall apply accordingly to review and report on the consolidated financial statements.

Art. 66. [Impartiality and independence of the auditor] 1. (repealed)

2. (Repealed)
3
. (Repealed)


4. The entity authorized to audit financial statements to perform the audit or review of financial statements performed by an authority approving the financial statements, unless the statute, contract or other binding unit otherwise required by law. Head of the unit could not make such a choice.

5. Head of the unit contains the entity authorized to audit financial statements an agreement on the audit or review of financial statements in time for his participation in the inventory of significant assets. The cost of implementing financial audit shall be borne by the individual.

6. Audit or review of financial statements carried out in violation of the provisions of Article. 56 sec. 2-4 of the Act dated 7 May 2009. On auditors and their self-government, entities authorized to audit financial statements and public supervision (Dz. U. of 2015. Pos. 1011, 1844 and 2016. Pos. 615 ) are void.

7. Termination of the agreement referred to in paragraph. 5, is only possible in the event of valid grounds. Differences of views on the application of accounting principles or auditing standards do not constitute valid grounds to terminate the contract. The termination of the audit or review of financial statements of the head unit and the entity authorized to audit financial statements shall immediately inform the Commission of the Audit Oversight.

Art. 67. [Permissions auditor] 1. The head of the audited entity to be made available to the auditor, carrying out the audit of financial statements, accounting records and supporting documents of the records made to them and any other documents, as well as provide comprehensive information, explanations and declarations - necessary to give the auditor's opinion on the audited financial statements.

2. The auditor is entitled to obtain information related to the course of study from contractors audited entity, including banks and its legal advisors - with the authorization of the head of the audited entity.
3
. If the audited financial statement of the parent company, the powers of the auditor referred to in paragraph. 1 and 2, they shall also be entitled to subsidiaries, jointly controlled entities and associates.

4. The auditors who carried out the audit of financial statements:

1) units, subsidiaries, joint ventures or associates - for reporting periods prior to fiscal year

2) of subsidiaries, joint ventures or associates - for the financial year

- Are obliged to provide adequate information and explanations to the auditor, the researcher for the fiscal year financial statements, including the parent company.

Art. 67a. [Appropriate application of] Articles. 65, Art. 66 paragraph. 4, 5 and 7 and art. 67 shall apply accordingly to audit the financial statements other than those referred to in Article. 64.

Art. 68. [Sharing reports] limited liability companies, mutual insurance companies, reinsurers mutual, joint-stock companies and cooperatives are obliged to make available to shareholders, shareholders or members of the annual financial statements and reports on the activities of the unit, and if the financial statements subject to audit - also opinion with the auditor's report - at least 15 days prior to the meeting of shareholders, the general meeting of shareholders or the general meeting of members or representatives of members of the cooperative. The joint stock company also provides a report to the shareholders of the supervisory board or the audit committee or an administrative.

Art. 69. [Data submitted to the authorities registered] 1. The head unit is made in the relevant register court the annual financial statements, the auditor's opinion, if it was subject to the study, a copy of a resolution or an order approving authority for approval of the annual financial statements and the distribution of profit or covering of loss in the case of entities referred to in Article. 49 paragraph. 1 - the activity report of - within 15 days from the date of approval of the annual financial statements.

1a. (Repealed)

1b. Branch manager of a foreign entrepreneur shall submit to the appropriate court register annual financial statements of the branch.


1c. Branch manager, established outside the territory of the Republic of Polish insurance company, a reinsurance undertaking, a foreign bank, a credit institution or financial institution - for the purposes of the Banking Law, hereinafter referred to as "credit or financial institution," consists in the proper court register, prepared and audited in accordance with the the laws in force in the State of the credit institution or financial and translated into Polish by a sworn translator, the annual financial statements of the institution together with the report on the activities and the auditor's opinion.

1d. The provision of paragraph. 1c shall apply to the consolidated financial statements together with the consolidated statement of operations and the auditor's opinion.

1e. Deposit in the relevant register court shall not be subject to paragraph. 1f, the annual financial statements of the branch of a credit institution or financial.

1f. Branch manager credit or financial institution established in a country outside the European Economic Area, in addition to the documents referred to in paragraph. 1c, it consists also in the relevant register court subject to audit annual financial statements of the department, together with the auditor's opinion, if:

1) the annual financial statements of the credit or financial institution is not prepared in accordance with the rules adopted or equivalent to those adopted in the European Economic Area or

2) in the State of the credit or financial institution is not the condition of reciprocity in relation to the credit or financial institution domiciled in a country of the European Economic Area.

1g. Head of the unit referred to in Article. 63f paragraph. 1 or art. 63g mouth. 1, is made in the relevant register court properly report payments to the government or the consolidated statement of payments to public administration, together with the annual financial statements within the time specified in paragraph. 1.

2. If the financial statements have not been approved by the date specified in Article. 53 paragraph. 1, it should be submitted in the court register within 15 days after that date, as well as 15 days after its approval, together with the documents referred to in paragraph. 1.
3
. The provision of paragraph. 1 and 2 shall apply to the parent company preparing the annual consolidated financial statements of the Group.

4. Director of the parent company niesporządzającej consolidated financial statements in accordance with art. 56 sec. 2, consists of a relevant court register translated into Polish by a sworn translator:

1) The consolidated financial statements of the parent company senior management, together with the auditor's opinion on the audit of the report,

2) consolidated with the parent company's senior

- Within 30 days from the date of approval of the report referred to in paragraph 1 no later than 12 months from the balance sheet of the parent company niesporządzającej consolidated financial statements.

Art. 70. [Obligations unit manager] 1. The head of the unit referred to in Article. 64, which does not apply art. 69, is obliged to submit the introduction to the financial statements form part of the notes, balance sheet, income statement, statement of changes in equity (fund) and cash flows for the year, to declare within 15 days from the date of approval, together with the auditor's opinion and the copy of the resolution or an order approving authority for approval of the financial statements and the distribution of profit or covering of loss.

1a. (Repealed)

1b. (Repealed)

1c. (Repealed)

1d. (Repealed)

2. The notice referred to in paragraph. 1, followed by the "Court and Economic Monitor".
3
. (Repealed)

Art. 70a. [Statement no obligation to prepare and file an annual financial report] head of the unit which is a general partnership of individuals or a company partnership, the net revenues from sales of goods, products and financial operations for the previous year amounted to less than the equivalent in Polish currency 1 200 000 and which does not apply the accounting principles specified in the Act on the basis of art. 2 paragraphs. 2, composed in registration court conducting the National Court Register, within six months from the end of the year, a statement of no obligation to prepare and file an annual financial report.


Chapter 8


Privacy


Art. 71. [Obligation to store the harvest] 1. The records referred to in Article. 10 paragraph. 1, accounts, accounting documents, inventory documents and financial statements, hereinafter referred to as "collections", should be stored in a proper manner and protect against unauthorized changes, unauthorized dissemination, damage or destruction.

2. With bookkeeping using a computer data protection should be based on the use of resistant threat data carriers, the selection of appropriate external protection, systematic creation of backup copies of data sets stored on data carriers, provided that durability is an information storage system, accounting for the time not less than required to keep books of accounts, and ensuring the protection of computer programs and data system of accounting, through the use of appropriate software solutions and organizational, to protect against unauthorized access or destruction.

Art. 72. [Account books recorded on computer media] 1. The accounts may take the form, subject to Art. 13 paragraph. 2 and 3, sets fixed on data carriers, provided the use of solutions mentioned in Article. 71 paragraph. 2.

2. If the system of protection of data sets accounting, fixed on data carriers, does not meet the requirements specified in Article. 71 paragraph. 2, these records should be printed within the time limits provided for in Article. 13 paragraph. 6.
3
. Storing accounting records on any media other than listed in the paragraph. 2 is permitted provided that reproduce books in the form of prints.

Art. 73. [Preservation of proof of accounting documents and inventory] 1. Accounting documents and inventory documents stored in the unit, subject to paragraph. 4, in its original form in a fixed order adapted to the method of bookkeeping, broken down into reporting periods, in a way that they are easy to locate. Annual collections of accounting evidence and documents inventory is determined by specifying the name of the type and symbol of the last years and the final numbers in the set.

2. With the exception of documents relating to the transfer of property rights to real estate, entrusting responsibility for the assets, significant contracts and other important documents specified by the head of the unit, following the approval of the financial statements the content of accounting documents can be transferred to the data carriers, the maintenance of a stable form content of the evidence. To apply this method of data storage is to have devices to recreate evidence in the form of print, unless other regulations provide otherwise.
3
. After approving the financial statements for the fiscal year, documentation, accounting policies, accounting records and financial statements, including the report on the activities of the unit, stored respectively in the manner specified in paragraph. 1.

4. Collections, referred to in art. 71 paragraph. 1, can be stored in the manner specified in paragraph. 1-3, outside the unit, where will be transferred to another storage unit, providing services in the field of document storage. The provision of Article. 11a shall apply accordingly.

Art. 74. [retention periods of the annual report and other collections] 1. Approved the annual financial statements are subject to permanent storage.

2. Other collections are stored for at least the period:

1) accounts - 5 years;

2) cards salaries of employees or their equivalent - a period required to access the information resulting from the provisions of pension benefits and the tax, but not less than 5 years;

3) evidence of accounting for receipts from retail sales - the date of approval of the financial statements for the fiscal year, but not less than the settlement date of entrusted assets covered by retail;

4) evidence of accounting for fixed assets under construction, loans, loans and trade agreements, claims pursued in civil proceedings or subject to criminal proceedings or tax - for 5 years from the beginning of the year following the year in which the operations, transactions and proceedings finally they closed, paid, settled or expired;

5) documentation of the accounting - for a period of not less than 5 years from the expiry of its validity;

6) documents concerning warranty and complaint - one year after the date of expiry of the warranty or settlement of the claim;

7) inventory documents - 5 years;

8) other accounting documents and reports as the obligation to prepare based on the Law - 5 years.

3
. Retention periods set out in paragraph. 2 is calculated from the beginning of the year following the year to which the data sets relate.

Art. 75. [Principles of sharing collections of third parties] Providing a third party files or parts thereof:

1) for inspection at the unit - requires the consent of the head of the entity or person authorized by him,

2) outside the head office (branch) unit - requires the written consent of the head of the unit and leave the unit confirmed lineup of acquired documents

Unless otherwise provided.

Art. 76. [Storage harvesting units converted or eliminated] 1. Collections units that:

1) ended its activities in a business combination with another entity or change of legal form - be kept by the continuing activities;

2) they have been eliminated - stores designated person or entity; where to store manager, liquidator individual or bankruptcy trustee shall inform the competent court or another registration body or the records of economic activity and the tax office.

2. In matters referred to in paragraph. 1, Article. 72-74 shall apply accordingly.



Chapter 8a

UsĹ,ugowe bookkeeping

Art. 76a. [UsĹ,ugowe bookkeeping] 1. Service Company bookkeeping is an economic activity within the meaning of the provisions on freedom of economic activity, involving the provision of services for the activities referred to in Art. 4 paragraph. 3 points 2-6.

2. (Repealed)
3
. The activities referred to in paragraph. 1, can perform entrepreneurs, provided that the activities in this area will be carried out by persons who:

1) have full legal capacity;

2) have not been convicted of an offense against the credibility of documents, property, business transactions, trading in money and securities, as a fiscal offense and for the offenses defined in Chapter 9.

4. (Repealed)

5. (Repealed)

6. (Repealed)

Art. 76b. (Repealed)

Art. 76c. (Repealed)

Art. 76d. (Repealed)

Art. 76e. (Repealed)

Art. 76f. (Repealed)

Art. 76g. (Repealed)

Art. 76h. [Liability insurance] 1. The entrepreneurs referred to in Article. 76a paragraph. 3, are obliged to contract liability insurance for damage caused in connection with the operations referred to in Article. 76a paragraph. 1.

2. The minister competent for financial institutions shall define, by regulation, the detailed scope of compulsory insurance, as referred to in paragraph. 1, the term of the obligation to insure and minimal guarantee sum, in particular taking into account the specific activities carried out and the scope of tasks.
3
. Paragraphs. 1 does not apply to, being entrepreneurs, auditors and tax advisors, if the insured from civil liability for damage caused in the performance of these professionals in the field referred to in paragraph. 1.

Art. 76i. (Repealed)


Chapter 9

Criminal liability


Art. 77. [Violation of the Act] Who violation of the law allows to:

1) of inactivity accounting books, keep a violation of the law or the administration of these books unreliable data

2) no staff of the financial statements, the consolidated financial statements, activity reports, reports of the activities of the group, report payments to the government, the consolidated statement of payments to public administration, preparation of them contrary to the provisions of the Act or the conclusion of these reports unreliable data

- Subject to a fine or imprisonment for up to 2 years, or both penalties together.

Art. 78. [Criminal liability of the auditor] 1. The auditor who prepares mis opinion on the financial statements and constitute the basis for the preparation of books of accounts of the situation or financial assets of the unit,

Subject to a fine or imprisonment for up to 2 years or both penalties together.

2. If the perpetrator of the act referred to in paragraph. 1 acts unintentionally,

Subject to a fine or imprisonment.

Art. 79. [Criminal Liability] Whoever contrary to the provisions of the Act:

1) does not give the financial statements audited by an auditor,

2) does not provide grants or inconsistent with the actual status information, explanations, statements to the auditor or does not allow him to perform duties

3) does not consist of financial statements to declare


4) does not consist of the financial statements, the consolidated financial statements, activity reports, reports of the activities of the group, report payments to the government, the consolidated statement of payments to public administration in the relevant register court,

5) does not provide financial statements and other documents referred to in Article. 68

6) carries on business in the field of bookkeeping services without meeting the conditions referred to in Article. 76a paragraph. 3

7) carries on business in the field of bookkeeping services without complying with the obligation of the insurance contract referred to in Article. 76h paragraph. 1

- Subject to a fine or imprisonment.



Chapter 10

Specific and transitional provisions

Art. 80. [The delegation] 1. The units referred to in Article. 2 paragraphs. 1 point 4, does not apply the provisions of Chapters 5, 6 and 7 of the Act.

2. The minister responsible for public finances may, by regulation, to require the study of the financial statements referred to in Article. 2 paragraphs. 1 point 4.
3
. Associations, trade unions, employers 'organizations, chambers of commerce, foundations, foreign companies, within the meaning of the provisions on freedom of economic activity, socio-professional organization of farmers, professional self-government, self-government organizations craft and Polish Motor Insurers' Bureau, if not operating economic, does not apply the provisions of chapters 6 and 7 of the Act.

Art. 80a. (Repealed)

Art. 81. [delegations] 1. (repealed)

2. The minister responsible for public finance shall by regulation:

1) after consultation with the Chairman of the Financial Supervision Commission specific rules for accounting of investment funds, including:

A) the scope of information disclosed in the financial statements, the combined financial statements of an investment fund with sub-funds and accounts of individual sub-funds,

B) rules for drawing up financial statements, the combined financial statements of the investment fund with sub-funds and the separate financial statements of the sub-funds,

C) preparation and submission deadlines for the announcement of the annual financial statements and annual combined financial statements of the investment fund and the annual reports of individual sub-funds,

D) the dates of preparation and review of interim financial statements and semi-annual combined financial statements of the investment fund and half-yearly reports of individual sub-funds,

E) the terms of approval of the annual financial statements, annual combined financial statements of the investment fund with sub-funds and the annual reports of individual sub-funds;

1a) after consultation with the Chairman of the Financial Supervision range of information disclosed in the financial statements of alternative investment companies, taking into account to provide investors with access to information relevant to investment decisions and the specificity of the activities of alternative investment companies;

2) after consultation with the Chairman of the Financial Supervision Commission, the special accounting rules for brokerage houses, including the scope of information disclosed in the financial statements and accordingly in the consolidated financial statements of capital groups and activity reports;

3) the detailed rules for drawing up by entities other than banks, insurance and reinsurance undertakings consolidated financial statements of capital groups, including the scope of information presented in these reports and activity reports;

4) The detailed rules for recognition, methods of valuation, scope of disclosure and presentation of financial instruments;

5) (repealed)

6) after consultation with the Financial Supervision Commission:

A) special rules for accounting of insurance and reinsurance undertakings, including the creation of technical provisions and the information disclosed in the notes, the rules of preparation of the consolidated financial statements of capital groups, including the scope of information disclosed in the consolidated financial statements and capital groups in the activity reports,

B) specific rules for accounting of pension funds, including the scope of information disclosed in the financial statements, the terms drawn up and submitted to the notice of the annual financial statements, the scope of the publication of the annual financial statements and the date of approval of the annual financial statements;

7) (repealed)


8) after consultation with the Financial Supervision Commission:

A) special rules for bank accounting, including the scope of information disclosed in the notes to the financial statements

B) (repealed)

C) the rules for creating provisions for risks related to banking operations,

D) special accounting principles of co-operative savings and credit unions, including:

- The scope of information disclosed in the financial statements,

- Principles of valuation of assets and liabilities, including the creation of write-downs

- Taking into account the specific nature of the cooperative savings and credit unions;

9) The scope of activity, number of members and the entities entitled to registration as well as the organization Accounting Standards Committee referred to in Article. 10 paragraph. 3.

10) (repealed)

Art. 82. [The delegation] minister responsible for public finances may, by regulation:

1) (repealed)

2) after consultation with the Chairman of the Financial Supervision Commission, determine the specific rules for accounting of the National Depository for Securities and clearing fund referred to in the regulations on securities trading, including the scope of information disclosed in the financial statements and accordingly in the consolidated financial statements of the group capital, as well as in the activity reports;

3) after consultation with the Chairman of the Financial Supervision Commission, determine the specific rules for accounting of the guarantee fund referred to in the regulations on securities trading, including the scope of information disclosed in the financial statements;

4) after consultation with the Chairman of the Financial Supervision Commission, determine the specific rules for accounting companies operating stock exchanges and the OTC market, including the scope of information disclosed in the financial statements, respectively, in the consolidated financial statements of the group and activity reports;

5) after consultation with the Chairman of the Financial Supervision Commission, determine the specific rules for accounting of the national payment institutions, including the scope of information disclosed in the financial statements, respectively, in the consolidated financial statements of the group and activity reports.

Art. 83. [Calibration charts of accounts] 1. In order to standardize the rules for grouping of transactions and reduce the workload associated with the setting Works of accounts can be used in standard charts of accounts.

2. The minister responsible for public finances may, by regulation, standard charts of accounts:

1) after consultation with the Financial Supervisory Commission - for banks;

2) after consultation with the Chairman of the Financial Supervision Commission - for units operating under the provisions of the securities;

3) after consultation with the Chairman of the Financial Supervision Commission - for investment funds;

4) after consultation with the Financial Supervisory Commission - for insurance, reinsurance undertakings or pension funds;

5) (repealed)

6) to other entities;

7) after consultation with the Financial Supervisory Commission - for cooperative savings and credit unions and the National Association of Cooperative Savings and Credit.



Chapter 11

Changes in binding regulations, the final

Art. 84. (omitted)

Art. 85. [repealed provisions] 1. The following shall be repealed, subject to paragraph. 2:

1) art. 244-252, 418-420, 422-426, and art. 428 Decree of the President of the Republic of 27 June 1934. - Commercial Code [1];

2) art. 26a paragraph. 1 of the Act of 6 July 1982. On the principles of the territory of the Polish People's Republic of economic activity in the field of small-scale production by foreign legal persons (Dz. U. of 1989. Pos. 148 and 442, and 1991. Pos. 253 and 480);

3) art. 39 and 40 of the Act of 10 July 1985. Of mixed enterprises (Dz. U. pos. 142, 1986. Pos. 72 and 1987. Pos. 181);

4) art. 20 paragraph. 2 of the Act of 31 January 1989. On financial management of state enterprises (Dz. U. of 1992. Pos. 27 and 1993. Pos. 82);

5) Article. 481 of the Act of 31 January 1989. - Banking Law (Dz. U. of 1992. Pos. 359, 1993. Pos. 29, 127 and 646, and 1994. Pos. 369) [2];

6) art. 14 of the Act of 13 July 1990. The privatization of state enterprises (Dz. U. pos. 298 and 1991. Pos. 253 and 480) [3];

7) art. 41 paragraph. 3, Art. 47, Art. 58 point 1 and art. 59 of the Act of 28 July 1990. Insurance Activity [4];

8) Article. 29 paragraph. 2 and 3 of the Act of 12 September 1990. On Higher Education (Dz. U. pos. 385, 1992. Pos. 254 and 314 and 1994. Pos. 3, 163 and 509) [5];


9) art. 30 paragraph. 2 of the Act of 25 October 1991. On organizing and conducting cultural activity (Dz. U. pos. 493);

10) Article. 32 § 3 and Article. 95 of the Act of 22 March 1991. - Law on Public Trading in Securities and Trust Funds (Dz. U. of 1994. Pos. 239 and 313) [6];

11) Article. 61 paragraph. 2 and 3 of the Act of 30 August 1991. On health care (Dz. U. pos. 408 and 1992. Pos. 315) [7].

2. (Omitted)

Art. 86. [Entry into force] This Act shall come into force on 1 January 1995. And is applicable for the first time to the financial statements for the fiscal year beginning in 1995.



1) This Act shall be in the scope of its regulation to implement the following directives of the European Communities:

1) of Directive 2001/65 / EC of 27 September 2001. Amending Directives 78/660 / EEC, 83/349 / EEC and 86/635 / EEC as regards the valuation rules for annual and consolidated accounts of certain types of companies and as of banks and other financial institutions (Acts. office. L 283, 27.10.2001);

2) of Directive 2003/38 / EC of 13 May 2003. Amending Directive 78/660 / EEC on the annual accounts of certain types of companies as regards amounts expressed in euro (Acts. Office. EC L 120, 15.05 .2003);

3) of Directive 2003/51 / EC of 18 June 2003. Amending Directives 78/660 / EEC, 83/349 / EEC, 86/635 / EEC and 91/674 / EEC on the annual and consolidated financial statements certain types of companies, banks and other financial institutions and insurance undertakings (Acts. office. L 178 of 17.07.2003).

Details of the announcement of acts of European Union law, included in this Act - from the date the Republic of Polish membership in the European Union - concern the announcement of these acts in the Official Journal of the European Union - Special edition.

Appendix 1. [SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR UNITS OTHER THAN BANKS, INSURANCE AND REINSURANCE UNDERTAKINGS]

Annexes to the Act of 29 September 1994.

Appendix 1

SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR UNITS OTHER THAN BANKS, INSURANCE AND REINSURANCE UNDERTAKINGS

Introduction to the financial statements

Includes in particular:

1) the business name, registered office and address or place of residence and address core business and the number of relevant court register or records;

2) an indication of the duration of the entity, if limited;

3) indication of the period covered by the financial statements;

4) an indication that the financial statements contain combined data, if the unit includes internal organizational units preparing independent financial statements;

5) whether the financial statements have been prepared on the assumption that the entity in the foreseeable future and that there are no circumstances indicating a threat to the continuation of its business;

6) in the case of financial statements for the period during which there was a connection, an indication that it is a financial statement prepared after the merger, and an indication of the method of accounting for the merger (acquisition, merger of shares);

7) discuss the adopted accounting principles (policy), including methods of valuation of assets and liabilities (including depreciation), to determine the financial result and the method of preparation of the financial statements to the extent to which the law leaves the individual right to choose.
Balance

Assets


A. Fixed assets

I. Intangible assets

1. Research and development costs

2. Goodwill
3
. Other intangible assets

4. Advances on intangible assets

II. Tangible fixed assets

1. Assets

A) land (including perpetual usufruct)

B) buildings, premises, right to the premises and facilities of civil engineering

C) plant and machinery

D) means of transport

E) other fixed assets

2. Assets under construction
3
. Advances for fixed assets under construction

III. Long-term receivables

1. From related parties

2. From other entities in which the Company holds equity interests
3
. From other entities

IV. Long-term investments

1. Real estate

2. Intangible assets
3
. Long-term financial assets

A) in related entities

- Shares

- Other securities

- Loans

- Other long-term financial assets


B) in other entities in which the Company holds equity interests

- Shares

- Other securities

- Loans

- Other long-term financial assets

C) in other entities

- Shares

- Other securities

- Loans

- Other long-term financial assets

4. Other long-term investments

V. Long-term prepayments

1. Deferred income tax

2. Other accruals

B. Current assets

I. inventories

1. materials

2. Semi-finished products and products in progress
3
. Finished products

4. Goods

5. Advances for supplies and services

II. Short-term receivables

1. Receivables from related parties

A) due to deliveries and services with maturity date:

- 12 months

- Over 12 months

B) other

2. Receivables from other entities in which the Company holds equity interests

A) due to deliveries and services with maturity date:

- 12 months

- Over 12 months

B) other
3
. Receivables from other entities

A) due to deliveries and services with maturity date:

- 12 months

- Over 12 months

B) taxes, subsidies, customs duties, social and health insurance and other services public

C) other

D) claimed in court

III. Short-term investments

1. Short-term financial assets

A) in related entities

- Shares

- Other securities

- Loans

- Other current financial assets

B) in other entities

- Shares

- Other securities

- Loans

- Other current financial assets

C) cash and cash equivalents

- Cash in hand and at bank

- Other cash

- Other monetary assets

2. Other short-term investments

IV. Short-term prepayments

C. Called up share capital (fund)

D. Shares (stocks)
Total assets

Liabilities


A. Share capital (fund)

I. Share capital (fund)

II. Share capital (fund), including:

- Surplus sales value (issue value) over the nominal value of shares (shares)

III. Share capital (fund) from revaluation, including:

- Revaluation at fair value

IV. Other capital (funds), including:

- Created in accordance with the agreement (statute) of the company

- On shares (stocks)

V. Profit (loss) from previous years

VI. Profit (loss)

VII. Deductions from net profit during the financial year (negative value)

B. Liabilities and provisions for liabilities

I. Provisions for liabilities

1. Deferred income tax

2. Provision for pensions and similar

- Long-term

- Short-term
3
. Other provisions

- Long-term

- Short-term

II. Long-term liabilities

1. To related parties

2. To other entities in which the Company holds equity interests
3
. To other entities

A) loans

B) arising from issuance of debt securities

C) other financial liabilities

D) promissory notes payable

E) other

III. Short-term liabilities

1. Amounts due to related parties

A) due to deliveries and services with maturity date:

- 12 months

- Over 12 months

B) other

2. Liabilities to other entities in which the Company holds equity interests

A) due to deliveries and services with maturity date:

- 12 months

- Over 12 months

B) other
3
. Liabilities to other entities

A) loans

B) arising from issuance of debt securities

C) other financial liabilities

D) due to deliveries and services with maturity date:

- 12 months

- Over 12 months

E) advances received for deliveries and services

F) promissory notes payable

G) taxes, duties, social and health insurance and other services public

H) the remuneration

I) other

4. Special funds

IV. Accruals and

1. Negative goodwill

2. Other accruals

- Long-term

- Short-term

Total liabilities

Profit and loss


(Calculation variant)

A. Net revenues from sales of products, goods and materials, including:

- From affiliates

I. Net revenues from sales of products

II. Net revenues from sales of goods and materials

B. Cost of products, goods and materials, including:

- Related entities

I. Cost of products sold

II. Value of goods and materials

C. Profit (loss) on sales (A-B)

D. Cost of sales

E. General and administrative expenses

F. Profit (loss) on sales (C-D-E)

G. Other operating income

I. Profit due to the outflow of non

II. grants

III. Revaluation of non-financial assets

IV. Other operating income

H. Other operating expenses

I. The loss due to the outflow of non

II. Revaluation of non-financial assets

III. Other operating expenses

I. Profit (loss) from operating activities (F + G-H)

J. Financial income

I. Dividends and share in profits, including:

A) from related parties, including:

- In which the Company holds equity interests

B) from other entities, including:

- In which the Company holds equity interests

II. Interest, including:

- From affiliates

III. Profit from expenditure on financial assets, including:

- In affiliates

IV. Revaluation of financial assets

V. other

K. Financial costs

I. Interest, including:

- Related parties

II. The loss due to the outflow of financial assets, including:

- In affiliates

III. Revaluation of financial assets

IV. other

L. Profit (loss) (I + J-K)

M. Income tax

N. Other obligatory decrease of profit (loss)

O. Net profit (loss) (L-M-N)

(Comparative variant)

A. Net revenues from sales and equivalent, including:

- From affiliates

I. Net revenues from sales of products

II. Change (increase - positive value, decrease - negative value)

III. Cost of manufacturing products for own needs

IV. Net revenues from sales of goods and materials

B. Operating expenses

I. depreciation

II. Materials and energy

III. External services

IV. Taxes and fees, including:

- Excise

V. Salaries

VI. Social security and other benefits, including:

-
Retirement
VII. Other costs

VIII. Value of goods and materials

C. Profit (loss) on sales (A-B)

D. Other operating income

I. Profit due to the outflow of non

II. grants

III. Revaluation of non-financial assets

IV. Other operating income

E. Other operating expenses

I. The loss due to the outflow of non

II. Revaluation of non-financial assets

III. Other operating expenses

F. Profit (loss) from operating activities (C + D-E)

G. Financial income

I. Dividends and share in profits, including:

A) from related parties, including:

- In which the Company holds equity interests

B) from other entities, including:

- In which the Company holds equity interests

II. Interest, including:

- From affiliates

III. Profit from expenditure on financial assets, including:

- In affiliates

IV. Revaluation of financial assets

V. other

H. Financial costs

I. Interest, including:

- Related parties

II. The loss due to the outflow of financial assets, including:

- In affiliates

III. Revaluation of financial assets

IV. other

I. Profit (loss) before tax (F + G-H)

J. Income tax

K. Other obligatory decrease of profit (loss)

L. Net profit (loss) (I-J-K)

Statement of changes in equity (fund)

I. Share capital (fund) at the beginning of the period (BO)

- Changes in accounting principles (policy)

- Correction of errors

Ia capital (fund) at the beginning of the period (BO), after adjustments

1. Share capital (fund) at the beginning of the period

1.1. Changes in share capital (fund)

A) increase (due to)

- Issuing shares (share issue)


...
B) decrease (due to)

- Redemption of shares (shares)


...

1.2. Share capital (fund) at the end of the period

2. Share capital (fund) at the beginning of the period

2.1. Changes in share capital (fund)

A) increase (due to)

- Issue of shares above the nominal value

- Distribution of profit (statutory)

- Distribution of profit (above the statutory minimum value)


...
B) decrease (due to)

- Loss coverage


...
2.2. The state capital (fund) at the end of the period
3
. Share capital (fund) Revaluation reserve at beginning of period - changes in accounting principles (policy)

3.1. Changes in share capital (fund) from revaluation

A) increase (due to)


...
B) decrease (due to) - disposal of fixed assets


...
3.2. Share capital (fund) from revaluation at the end of the period

4. Other capital (funds) at the beginning of the period

4.1. Changes in other capital (funds)

A) increase (due to)


...
B) decrease (due to)


...
4.2. Other capital (funds) at the end of the period

5. Profit (loss) brought forward at beginning of period

5.1. Profit from previous years at the beginning of the period

- Changes in accounting principles (policy)

- Correction of errors

5.2. Profit from previous years at the beginning of the period, after adjustments

A) increase (due to)

- Distribution of profit from previous years


...
B) decrease (due to)


...
5.3. Profit from previous years at the end of the period

5.4. Loss from previous years at the beginning of the period

- Changes in accounting principles (policy)

- Correction of errors

5.5. Loss brought forward at beginning of period, after adjustments

A) increase (due to)

- Transfer of losses from previous years to cover


...
B) decrease (due to)


...
5.6. Loss from previous years at the end of the period

5.7. Profit (loss) from previous years at the end of the period

6. The net result

A) net profit

B) net loss

C) deductions from profit

II. Share capital (fund) at the end of the period (BZ)

III. Share capital (fund) after proposed profit distribution (loss coverage)
Cash flow


(Direct method)

A. Cash flows from operating activities

I. Proceeds

1. sales

2. Other proceeds from operating activities

II. expenses

1. Supplies and services

2. Salaries net
3
. Social and health insurance and other benefits

4. Taxes and public charges

5. Other operating expenses

III. Net cash flows from operating activities (I-II)

B. Cash flows from investing activities

I. Proceeds

1. Disposal of intangible and tangible fixed assets

2. Sale of investment property and intangible assets
3
. From financial assets, including:

A) in related entities

B) in other entities

- Disposal of financial assets

- Dividends and share in profits

- Repayment of long-term loans

- Interest

- Other inflows from financial assets

4. Other investment proceeds

II. expenses

1. Purchase of intangible and tangible fixed assets

2. Investments in real estate and intangible assets
3
. For financial assets, including:

A) in related entities

B) in other entities

- Purchase of financial assets

- Term loans granted

4. Other investment expenses

III. Net cash flows from investing activities (I-II)

C. Cash flows from financing activities

I. Proceeds

1. Net proceeds from issue of shares (issue of shares) and other equity instruments and additional capital

2. Loans and advances
3
. Debt securities

4. Other financial income

II. expenses

1. Acquisition of shares (stocks)

2. Dividends and other payments to owners
3
. Other than payments to shareholders, expenses related to profit distribution

4. Repayment of borrowings

5. Redemption of debt securities

6. Due to other financial liabilities

7. Payment of finance lease agreements

8. interest

9. Other financial expenses

III. Net cash flows from financing activities (I-II)

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

E. Balance sheet change in cash, including:


- Change in cash due to exchange differences

F. Cash and cash equivalents at beginning of period

G. Cash and cash equivalents at end of period (F +/- D), including:

- Restricted cash

(Indirect method)

A. Cash flows from operating activities

I. Profit (loss)

II. Total adjustments

1. depreciation

2. Gains (losses) from foreign exchange differences
3
. Interest and share in profits (dividends)

4. Profit (loss) from investing activities

5. Change in reserves

6. Change in inventories

7. Change in receivables

8. Change in current liabilities, excluding borrowings

9. Change in accruals

10. Other adjustments

III. Net cash flows from operating activities (I +/- II)

B. Cash flows from investing activities

I. Proceeds

1. Disposal of intangible and tangible fixed assets

2. Sale of investment property and intangible assets
3
. From financial assets, including:

A) in related entities

B) in other entities

- Disposal of financial assets

- Dividends and share in profits

- Repayment of long-term loans

- Interest

- Other inflows from financial assets

4. Other investment proceeds

II. expenses

1. Purchase of intangible and tangible fixed assets

2. Investments in real estate and intangible assets
3
. For financial assets, including:

A) in related entities

B) in other entities

- Purchase of financial assets

- Term loans granted

4. Other investment expenses

III. Net cash flows from investing activities (I-II)

C. Cash flows from financing activities

I. Proceeds

1. Net proceeds from issue of shares (issue of shares) and other equity instruments and additional capital

2. Loans and advances
3
. Debt securities

4. Other financial income

II. expenses

1. Acquisition of shares (stocks)

2. Dividends and other payments to owners
3
. Other than payments to shareholders, expenses related to profit distribution

4. Repayment of borrowings

5. Redemption of debt securities

6. Due to other financial liabilities

7. Payment of finance lease agreements

8. interest

9. Other financial expenses

III. Net cash flows from financing activities (I-II)

D. Total net cash flow (A.III +/- B.III +/- C.III)

E. Balance sheet change in cash, including:

- Change in cash due to exchange differences

F. Cash and cash equivalents at beginning of period

G. Cash and cash equivalents at end of period (F +/- D), including:

- Restricted cash

Additional information and explanations

Include in particular:

1.

1) a detailed scope of changes in the value of groups of fixed assets, intangible assets and long-term investments, including the status of these assets at the beginning of the financial year, increase and decrease due to: revaluation, acquisition, disposal, internal displacement and the final state, and for amortized assets - like representation of states and titles change existing depreciation or amortization;

2) the amount made during the financial year write-downs of fixed assets separately for long-term non-financial assets and financial assets;

3) the amount of the costs of completed development work and the amount of goodwill and an explanation of the period written off as referred to in Article. 33 paragraph. 3 and art. 44b paragraph. 10;

4) the value of land in perpetual usufruct;

5) value nieamortyzowanych or nieumarzanych by the fixed assets used under lease agreements, leases and other contracts, including leases;

6) the number and value of its holdings of securities or rights, including participation certificates, convertible debt securities, warrants and options, indicating the rights they confer;

7) data on write-downs of receivables, with an indication of the beginning of the financial year's increases, use of, and termination condition at the end of the financial year;

8) data on the ownership structure of the share capital and the number and nominal value of subscribed shares, including preferred;


9) at the beginning of the financial year, and to increase the use and final state capital (funds) backup, reserves and capital (fund) from revaluation, if the entity does not prepare a statement of changes in equity (fund);

10) proposals as to how the distribution of profit or covering of loss for the year;

11) data on the state of reserves according to their creation at the beginning of the financial year's increases, use of, termination and final state;

12) The breakdown of long-term liabilities according to the balance sheet items remaining from the balance sheet, the expected agreement, the repayment period:

A) up to 1 year,

B) from 1 year to 3 years,

C) over 3 to 5 years

D) over 5 years;

13) the total amount of liabilities secured on the assets of the undertaking and the nature and form of the security;

14) a list of significant items of active and passive accruals in the amount of prepayments representing the difference between the value received financial assets and the obligation to pay for them;

15) where the asset or liability is recognized in more than one item of the balance sheet, the relationship between these positions; This applies in particular the division of assets and liabilities on the part of the long and short term;

16) the total amount of contingent liabilities, including those granted by the guarantees and warranties, including bills of exchange, are not included in the balance sheet, indicating the obligations secured by the assets of the entity and the nature and form of these safeguards; must be shown separately information about contingent liabilities for pensions and similar benefits, and to related parties or associates;

17) where assets other than financial instruments are measured at fair value:

A) the significant assumptions used to determine fair value, where the data used to determine that value does not come from an active market,

B) for each category of asset is not a financial instrument - fair value shown in the balance sheet, as well as the effects of revaluation respectively included in financial income or expenses or recognized in equity (fund) from revaluation during the reporting period,

C) a table of changes in equity (fund) from revaluation includes the state capital (fund) at the beginning and end of the reporting period and the increases and decreases during the year.

2.

1) the structure of in-kind (activities) and territorial (geographic markets) net revenues from sales of goods and products, insofar as these categories and markets differ significantly from each other, taking into account the principles of organization of sales of products and provision of services;

2) in the case of units which draw profit and loss account in the calculation variant, the data on the costs of manufacturing products for own needs and cost generic:

A) depreciation,

B) materials and energy,

C) third party services

D) taxes and fees

E) wages

F) insurance and other benefits, including pension

G) other costs by type;

3) the amount and an explanation of the reasons for impairment losses on fixed assets;

4) the amount of inventory write-downs;

5) information on revenues, costs and results of discontinued operations in the financial year or to be discontinued in the next year;

6) settlement of the difference between taxable income and the financial result (profit, loss);

7) The cost of fixed assets under construction, including interest and foreign exchange differences, which increased the cost of fixed assets under construction in the year;

8) interest and foreign exchange differences, which increased the purchase price of goods or the cost of sales in the year;

9) incurred in the last year and planned for the following year expenditures for non-financial assets; must be shown separately incurred and planned expenditures for environmental protection;

10) the amount and nature of individual items of income or expense of extraordinary value or that occur incidentally.
3
. For financial statement items denominated in foreign currencies - rates adopted for their valuation.

4. Explanation of the structure of cash in the cash flow statement, and if the cash flow statement is prepared using the direct method, also must present a reconciliation of net cash flow from operating activities, prepared by the indirect method; in case of differences between changes in certain items in the balance sheet and changes of the same items presented in the statement of cash flows, you should explain their reasons.


5. Info:

1) the nature and purpose of economic agreements concluded by the unit not included in the balance sheet to the extent necessary to assess their impact on the financial position and financial result;

2) transactions (and their amounts) provided by the unit other than market terms with related parties, which are understood as related parties as defined in the international accounting standards adopted in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002. on the application of international accounting standards, along with the information specifying the nature of the relationship with related parties and other information about the transactions necessary for an understanding of their impact on the financial position and financial result. Information about individual transactions may be grouped according to their type, except in the case where information on individual transactions is necessary to assess their impact on the financial position and financial result;

3) average employment in the financial year, divided into professional groups;

4) wages and salaries, including profit sharing, paid or payable to members of management, supervisory or administrative commercial companies (for each group separately) for the fiscal year and any liabilities arising from pensions and similar benefits for former members of those bodies or liabilities incurred in connection with these pensions, indicating the amount of the total for each category of authority;

5) amounts advances, loans and similar benefits granted to members of management, supervisory and administrative units, with an indication of their main conditions, the interest rate and any amounts repaid, written off or written off and liabilities incurred on their behalf by way of guarantees of any kind, with an indication of the total amount for each of these bodies;

6) Remuneration of Auditor or an entity authorized to audit financial statements, paid or payable for the year separately for:

A) the mandatory audit of the annual financial statements

B) other assurance services

C) tax consultancy services,

D) other services.

6.

1) information about income and expenses arising from mistakes made in previous years and recognized as the financial capital (fund) with their amounts and kinds;

2) information about significant events that occurred after the balance sheet date and were not included in the financial statements and on their impact on the financial position and the financial result;

3) the presentation made in the fiscal year changes in accounting principles (policy), including methods of valuation, if they have a significant impact on the financial position and financial result, their causes and due to changes in the amount of profit or loss and changes in equity ( fund), and the presentation of changes in the method of preparation of the financial statements including its causes;

4) numerical data, together with an explanation, ensuring comparability of the financial statements for the year preceding the report for the fiscal year.

7.

1) information on the joint ventures, which are not consolidated, including:

A) the name, the scope of the joint venture,

B) the percentage share,

C) jointly controlled parts of tangible fixed assets and intangible assets,

D) liabilities incurred for the purposes of the project or the purchase of used tangible fixed assets,

E) part of the liabilities jointly incurred,

F) the revenue generated from the joint venture and the costs associated with them,

G) contingent liabilities and investment related to the joint venture;

2) information about transactions with related parties;

3) a list of the companies (name, headquarters), in which the Company holds equity interests, or 20% of the total number of votes in the governing body of the company; This list should also contain information on the percentage held commitment to equity and the amount of equity and profit or loss of the company for the last financial year;

4) if the entity does not prepare consolidated financial statements using the exemptions or exclusions, information about:

A) legal basis together with the data justifying the withdrawal from the consolidation

B) the name and registered office of the entity preparing the consolidated financial statements at a higher level group and place of its publication,


C) The basic indicators of economic and financial, characterizing the activities of related entities in the current and previous fiscal year, such as:

- Net revenues from sales of products, goods and materials and financial income,

- Net financial result and the amount of capital (fund), divided into groups,

- The value of assets,

- Average annual employment

D) the type of accounting standards (national or international) through related entities;

5) information:

A) the name and registered office of the entity preparing the consolidated financial statements at the highest level group, which consists of the company as a subsidiary, and the position in which the report is available

B) the name and registered office of the entity produces consolidated financial statements for the lowest level of the group, which consists of the company as a subsidiary, and the position in which the report is available;

6) the name, address of head office or registered office of the entity and the legal form of each of the units, which that body is a member having unlimited liability.

8. In the case of financial statements for the period during which there was a connection:

1) if the merger was accounted for using the acquisition method:

A) the name and description of the objects of the acquired company,

B) the number, nominal value and type of shares (shares) issued in connection

C) the price of acquisition, the value of net assets at fair value of the acquired company on the date of the merger, goodwill or negative goodwill and description of the principles of its amortization;

2) if the merger was accounted for as a pooling of interests:

A) company and a description of the objects of the companies that the merger has been removed from the register,

B) the number, nominal value and type of shares (shares) issued in connection

C) income and expenses, gains and losses and changes in equity of the combined company for the period from the beginning of the financial year during which the merger took place, until the merger.

9. In case of uncertainty as to the possibility of continuing activities, a description of these uncertainties and the statement that such uncertainty exists, and whether the financial statements contain adjustments associated with it; information should also include a description of actions taken or planned by the actions aimed at eliminating uncertainty.

10. Other than the information listed above, if it could materially affect the assessment of the economic and financial situation and the financial result.

Appendix 2. [SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR BANKS]

Appendix 2

SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR BANKS

Introduction to the financial statements

Includes a range of information specified in the regulations issued pursuant to art. 81 paragraph. 2 point 8 a bill
Balance

Assets


I. Cash and balances with the Central Bank

1. The current account

2. Reserve requirement
3
. Other measures

II. Debt securities eligible for rediscounting at the Central Bank

III. Receivables from financial sector

1. The current account

2. timely

IV. Receivables from non-financial sector

1. The current account

2. timely

V. Receivables from the public sector

1. The current account

2. timely

VI. Receivables from securities purchased under repurchase agreements

VII. Debt securities

1. banks

2. State budget and local budgets
3
. Other

VIII. Shares in subsidiaries

1. In financial institutions

2. In other entities

IX. Shares in joint ventures

1. In financial institutions

2. In other entities

X. Shares in associates

1. In financial institutions

2. In other entities

XI. Shares in other entities

1. In financial institutions

2. In other entities

XII. Other securities and other financial assets

XIII. Intangible assets, including:

- Goodwill

XIV. Tangible fixed assets

XV. Other assets

1. Repossessed assets - held for sale

2. Other

XVI. Accruals and

1. Deferred income tax

2. Other accruals

XVII. Called up share capital (fund)


XVIII. Own shares
Total assets

Liabilities


I. Liabilities to the Central Bank

II. Liabilities to financial sector

1. The current account

2. timely

III. Liabilities to non-financial sector

1. Savings accounts, including:

A) current

B) timely

2. Others, including:

A) current

B) timely

IV. Liabilities to the public sector

1. current

2. timely

V. Liabilities arising from securities sold under agreements to repurchase

VI. Liabilities arising from debt securities

VII. Other liabilities arising from financial instruments

VIII. Special funds and other liabilities

IX. Costs and deferred income and suspended

1. Accruals

2. Negative goodwill
3
. Other deferred income and suspended

X. reserve

1. Deferred income tax

2. Other provisions

XI. Subordinated liabilities

XII. Share capital (fund)

XIII. Share capital (fund)

XIV. Share capital (fund) from revaluation

XV. Other capital (funds)

1. General banking risk fund

2. Other

XVI. Profit (loss) from previous years

XVII. Profit (loss)

XVIII. Deductions from net profit during the financial year (negative value)

Total liabilities

The solvency ratio

Balance sheet items

I. Contingent liabilities granted and received

1. Liabilities granted:

A) financial

B) guarantees

2. Commitments received:

A) financial

B) guarantees

II. Liabilities arising from purchase / sale

III. Other

Profit and loss

I. Interest income

1. From the financial sector

2. From the non-financial sector
3
. From the public sector

4. With securities with fixed income

II. Interest costs

1. From the financial sector

2. From the non-financial sector
3
. From the public sector

III. Net interest income (I-II)

IV. Fee and commission income

V. Commission costs

VI. Net commission income (IV-V)

VII. Income from shares, other securities and other financial instruments with variable income

1. From subsidiaries

2. From affiliates
3
. From associates

4. From other entities

VIII. Result on financial operations

1. Securities and other financial instruments

2. other

IX. Net foreign exchange gains

X. Result on banking activities

XI. Other operating income

XII. Other operating expenses

XIII. General and administrative expenses

1. Salaries

2. Insurance and other benefits
3
. other

XIV. Depreciation of tangible and intangible assets

XV. Charges to provisions and revaluation

1. Charges to specific provisions and general banking risk

2. Revaluation of financial assets

XVI. Release of provisions and revaluation

1. Release of specific provisions and reserves for general banking risk

2. Revaluation of financial assets

XVII. Net provisions and revaluation (XV-XVI)

XVIII. Operating result

XIX. Result on extraordinary operations

1. Extraordinary gains

2. Extraordinary losses

XX. Profit (loss)

XXI. Income tax

XXII. Other obligatory decrease of profit (increase in loss)

XXIII. Profit (loss)

Statement of changes in equity (fund)

I. Share capital (fund) at the beginning of the period (BO)

- Correction of fundamental errors

II. Share capital (fund) at the beginning of the period (BO), after adjustments

1. Share capital (fund) at the beginning of the period

1.1. Changes in share capital (fund)

A) increase (due to)

- Issue of shares


...
B) decrease (due to)

- Redemption of shares


...
1.2. Share capital (fund) at the end of the period

2. Share capital (fund) at the beginning of the period

2.1. Changes in share capital (fund)

A) increase (due to)

- Issue of shares above the nominal value

- Distribution of profit (statutory)

- Distribution of profit (above the statutory minimum value)


...
B) decrease (due to)

- Loss coverage


...

2.2. Share capital (fund) at the end of the period
3
. Share capital (fund) Revaluation reserve at beginning of period

3.1. Changes in share capital (fund) from revaluation

A) increase (due to)


...
B) decrease (due to)

- Sale or liquidation of fixed assets


...
3.2. Share capital (fund) from revaluation at the end of the period

4. General banking risk fund at beginning of period

4.1. Changes in general banking risk fund

A) increase (due to)


...
B) decrease (due to)


...
4.2. General banking risk fund at the end of the period

5. Other capital (funds) at the beginning of the period

5.1. Changes in other capital (funds)

A) increase (due to)


...
B) decrease (due to)


...
5.2. Other capital (funds) at the end of the period

6. Profit (loss) brought forward at beginning of period

6.1. Profit from previous years at the beginning of the period

- Correction of fundamental errors

6.2. Profit from previous years at the beginning of the period, after adjustments

6.3. Change in retained earnings

A) increase (due to)

- Distribution of profit from previous years


...
B) decrease (due to)


...
6.4. Profit from previous years at the end of the period

6.5. Loss from previous years at the beginning of the period

- Correction of fundamental errors

6.6. Loss brought forward at beginning of period, after adjustments

6.7. Change in loss from previous years

A) increase (due to)

- Transfer of losses from previous years to cover


...
B) decrease (due to)


...
6.8. Loss from previous years at the end of the period

6.9. Profit (loss) from previous years at the end of the period

7. The net result

A) net profit

B) net loss

C) deductions from profit

III. Share capital (fund) at the end of the period (BZ)

IV. Share capital (fund) after proposed profit distribution (loss coverage)
Cash flow


(Direct method)

A. Cash flows from operating activities

I. Proceeds

1. interest

2. commissions
3
. Other proceeds from operating

II. expenses

1. interest

2. commissions
3
. Salaries

4. Insurance and other benefits

5. Other operating expenses

6. Taxes and public charges

7. Other operating expenses

III. Net cash flows from operating activities (I-II)

B. Cash flows from investing activities

I. Proceeds

1. Sale of shares in subsidiaries

2. Sale of shares in joint ventures
3
. Sale of shares in associates

4. Sale of shares in other entities, other securities (including commercial) and other financial assets

5. Disposal of intangible and tangible fixed assets

6. Other investment proceeds

II. expenses

1. Purchase of shares in subsidiaries

2. Purchase of shares in joint ventures
3
. Purchase of shares in associates

4. Purchase of shares in other entities, other securities and other financial assets (investment)

5. Purchase of intangible and tangible fixed assets

6. Other investment expenses

III. Net cash flows from investing activities (I-II)

C. Cash flows from financing activities

I. Proceeds

1. Borrowings on long-term loans from other banks

2. Long-term loans from non-bank financial institutions
3
. Issue of debt securities for other financial institutions

4. Increase in subordinated liabilities

5. Net proceeds from issue of shares and additional capital contributions

6. Other financial income

II. expenses

1. Repayment of long-term loans to other banks

2. Repayment of long-term loans to non-bank financial institutions
3
. Redemption of debt securities from other financial institutions

4. Due to other financial liabilities

5. Payment of finance lease agreements

6. Decrease in subordinated debt

7. Dividends and other payments to owners

8. Other than payments to shareholders, expenses related to profit distribution

9. Purchase of own shares

10. Other financial expenses


III. Net cash flows from financing activities (I-II)

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

E. Balance sheet change in cash, including

- Change in cash due to exchange differences

F. Cash and cash equivalents at beginning of period

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

- Restricted cash

(Indirect method)

A. Cash flows from operating activities

I. Profit (loss)

II. Adjustments:

1. depreciation

2. Gains (losses) from foreign exchange differences
3
. Interest and share in profits (dividends)

4. Profit (loss) from investing activities

5. Change in reserves

6. Change in debt securities

7. Change in receivables from financial

8. Change in receivables from non-financial sector and the public sector

9. Change in receivables from securities purchased under repurchase agreements

10. Change in shares, other securities and other financial assets (commercial)

11. Change in liabilities to financial institutions

12. Change in liabilities to non-financial sector and the public sector

13. Change in liabilities from securities sold under repurchase agreements

14. Change in liabilities from securities

15. Change in other liabilities

16. Change in accruals

17. Change in deferred income and proprietary

18. Other adjustments

III. Net cash flows from operating activities (I +/- II)

B. Cash flows from investing activities

I. Proceeds

1. Sale of shares in subsidiaries

2. Sale of shares in joint ventures
3
. Sale of shares in associates

4. Sale of shares in other entities, other securities and other financial assets (investment)

5. Disposal of intangible and tangible fixed assets

6. Other investment proceeds

II. expenses

1. Purchase of shares in subsidiaries

2. Purchase of shares in joint ventures
3
. Purchase of shares in associates

4. Purchase of shares in other entities, other securities and other financial assets (investment)

5. Purchase of intangible and tangible fixed assets

6. Other investment expenses

III. Net cash flows from investing activities (I-II)

C. Cash flows from financing activities

I. Proceeds

1. Borrowings on long-term loans from other banks

2. Long-term loans from non-bank financial institutions
3
. Issue of debt securities for other financial institutions

4. Increase in subordinated liabilities

5. Net proceeds from issue of shares and additional capital contributions

6. Other financial income

II. expenses

1. Repayment of long-term loans to other banks

2. Repayment of long-term loans to non-bank financial institutions
3
. Redemption of debt securities from other financial institutions

4. Due to other financial liabilities

5. Payment of finance lease agreements

6. Decrease in subordinated debt

7. Dividends and other payments to owners

8. Other than payments to shareholders, expenses related to profit distribution

9. Purchase of own shares

10. Other financial expenses

III. Net cash flows from financing activities (I-II)

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

E. Balance sheet change in cash, including

- Change in cash due to exchange differences

F. Cash and cash equivalents at beginning of period

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

- Restricted cash

Additional information and explanations

Include the scope of the information specified in the regulations issued pursuant to art. 81 paragraph. 2 point 8 of the Act.

Appendix 3. [SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR INSURANCE AND REINSURANCE UNDERTAKINGS]

Appendix 3

SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR INSURANCE AND REINSURANCE UNDERTAKINGS

Introduction


Includes a range of information specified in the regulations issued pursuant to art. 81 paragraph. 2 Section 6 of the Act
Balance

Assets


A. Intangible assets

1. Goodwill

2. Other intangible assets and advances for intangible assets

B. deposits

I. Real estate

1. Own land and the right of perpetual usufruct of land

2. Buildings, structures and cooperative ownership right to premises
3
. Construction investments and advances for these investments

II. Investments in subsidiaries

1. Shares in subsidiaries

2. Loans granted to subsidiaries and debt securities issued by these entities
3
. Other investments

III. Other financial investments

1. Shares, stocks and other securities with variable income securities, units and investment certificates in investment funds

2. Debt securities and other securities with fixed income
3
. Shares in investment pools

4. Loans guaranteed by mortgages

5. Other loans

6. Term deposits with credit institutions

7. Other investments

IV. Deposits with ceding undertakings

C. Net assets of life insurance where the investment risk (investments) borne by the policyholders

D. receivables

I. Receivables from direct insurance

1. Receivables from policyholders, including:

1.1. From subsidiaries

1.2. From other entities

2. Receivables from insurance intermediaries, including:

2.1. From subsidiaries

2.2. From other entities
3
. Other receivables

3.1. From subsidiaries

3.2. From other entities

II. Reinsurance receivables, including:

1. From subsidiaries

2. From other entities

III. Other receivables

1. Receivables from budget

2. Other receivables, including:

2.1. From subsidiaries

2.2. From other entities

E. Other assets

I. Tangible assets

II. Cash

III. Other assets

F. Accruals and

I. Deferred income tax

II. Deferred acquisition costs

III. Accrued interest and rent

IV. Other accruals

G. Called up share capital

H. Own shares
Total assets

Liabilities


A. Equity

I. Share capital

II. Supplementary capital

III. Revaluation reserve

IV. Other reserves

V. Profit (loss) from previous years

VI. Profit (loss)

VII. Deductions from net profit during the financial year (negative value)

B. Subordinated liabilities

C. Technical provisions

I. Provision for unearned premiums and provision for unexpired risk

II. Life assurance provision

III. Provisions for outstanding claims

IV. Provisions for bonuses and rebates

V. The equalization reserves (risk)

VI. Provisions for return of premiums for members

VII. Other technical provisions set out in the statute

VIII. Life assurance provision where the investment risk (investments) borne by the policyholders

D. Reinsurers' share in technical reserves (negative value)

I. Reinsurers' share in provision for unearned premiums and provision for unexpired risk

II. Reinsurers' share in life assurance provision

III. Reinsurers' share in the provision for outstanding claims

IV. Reinsurers' share in provision for bonuses and rebates

V. Reinsurers' share in other technical provisions specified in the statute

VI. Reinsurers' share in provision for life assurance policies where the investment risk (investments) borne by the policyholders

E. Estimated recourses and recoveries (negative value)

1. Estimated gross recourses and claims

2. Reinsurers' share in estimated recourses and claims returns

F. Other provisions

I. Provisions for retirement benefits and other compulsory employee benefits

II. Deferred income tax

III. Other provisions

G. Deposits received from reinsurers

H. Other liabilities and special funds

I. Liabilities from direct insurance

1. Liabilities to policyholders, including:

1.1. Given subsidiaries


1.2. To other entities

2. Liabilities to insurance intermediaries, including:

2.1. Given subsidiaries

2.2. To other entities
3
. Other liabilities of insurance, including:

3.1. Given subsidiaries

3.2. To other entities

II. Reinsurance liabilities, including:

1. Given subsidiaries

2. To other entities

III. Liabilities from issuance of own debt securities and loans taken, including:

1. Liabilities convertible into shares of the insurance

2. Other

IV. Liabilities to credit institutions

V. Other liabilities

1. Liabilities to the budget

2. Other liabilities

2.1. Given subsidiaries

2.2. To other entities

VI. Special funds

I. Accrued

1. Accruals

2. Negative goodwill
3
. Deferred income

Total liabilities

Balance sheet items

1. Receivables, including:

1.1. received guarantees and sureties

1.2. other

2. Contingent liabilities, including:

2.1. sureties and guarantees

2.2. acceptances and endorsed

2.3. assets with a commitment resale

2.4. other liabilities secured on assets or income
3
. Security reinsurance laid on the insurance company

4. Security reinsurance established by the insurance company in favor of ceding companies

5. Foreign assets not included in the assets

Technical Account property and casualty insurance

I. Premiums (1-2-3 + 4)

1. Gross premiums written

2. Reinsurers' share of gross written premium
3
. Change in unearned premiums and provision for unexpired risk

4. Reinsurers' share in the change in unearned premium reserve

II. Net returns on investments including costs, transferred from the profit and loss account

III. Other technical income, net of reinsurance

IV. Compensation and benefits (1 + 2)

1. Claims paid, net of reinsurance

1.1. Compensation and benefits paid gross

1.2. Reinsurers' share in claims and benefits paid

2. Change in provision for claims outstanding, net of reinsurance

2.1. Change in provisions for outstanding claims Gross

2.2. Reinsurers' share in change in provisions for outstanding claims

V. Changes in other technical provisions, net of reinsurance

1. Changes in other technical provisions gross

2. Reinsurers' share in change in other technical provisions

VI. Bonuses and rebates including change in provisions

VII. Costs of insurance activities

1. Acquisition costs

1.1. This change in deferred acquisition costs

2. Administrative costs
3
. Reinsurance commissions and profit participation reinsurers

VIII. Other technical charges, net of reinsurance

IX. Changes in equalization provisions (risk)

X. Technical result of property and casualty insurance

Technical account of life insurance

I. contributions

1. Gross premiums written

2. Reinsurers' share of gross premiums written
3
. Change in provision for unearned premiums and unexpired risk

4. Reinsurers' share in the change in unearned premium reserve

II. Investment income

1. Income from investments in real estate

2. Income from investments in subsidiaries

2.1. of shares

2.2. loans and debt securities

2.3. from other investments
3
. Revenues from other financial investments

3.1. of shares, other securities with variable income securities, units and investment certificates in investment funds

3.2. from debt securities and other securities with fixed income

3.3. with term deposits with credit institutions

3.4. from other investments

4. Gains on revaluation of investments

5. Gains on realization of investments

III. Unrealized gains on investments

IV. Other technical income, net of reinsurance

V. Compensation and benefits

1. Claims paid, net of reinsurance

1.1. Compensation and benefits paid gross


1.2. Reinsurers' share in claims and benefits paid

2. Change in provisions for outstanding claims net of reinsurance

2.1. Reserves Gross

2.2. Reinsurers' share

VI. Change in other technical provisions, net of reinsurance

1. Change in reserves in life insurance, net of reinsurance

1.1. gross reserves

1.2. net of reinsurers

2. Change in technical provisions, net of reinsurance for life insurance where the investment risk is borne by policyholders

2.1. gross reserves

2.2. net of reinsurers
3
. Change in other technical provisions laid down in the charter of reinsurance

3.1. gross reserves

3.2. net of reinsurers

VII. Bonuses and rebates including change in provisions, net of reinsurance

VIII. Costs of insurance activities

1. Acquisition costs

1.1. This change in deferred acquisition costs

2. Administrative costs
3
. Reinsurance commissions and profit sharing

IX. Investment expenses

1. Costs of property maintenance

2. Other investment charges
3
. Loss on revaluation of investments

4. Losses on the realization of investments

X. Unrealized losses on investments

XI. Other technical charges, net of reinsurance

XII. Net returns on investments including costs, transferred to the profit and loss account

XIII. The technical result of the life insurance

General profit and loss

I. Technical result of property and casualty insurance and life insurance

II. Investment income

1. Income from investments in real estate

2. Income from investments in subsidiaries

2.1. of shares

2.2. loans and debt securities

2.3. from other investments
3
. Revenues from other financial investments

3.1. of shares, other securities with variable income securities, units and investment certificates in investment funds

3.2. from debt securities and other securities with fixed income

3.3. with term deposits with credit institutions

3.4. from other investments

4. Gains on revaluation of investments

5. Gains on realization of investments

III. Unrealized gains on investments

IV. Net returns on investments including costs, transferred from the technical life insurance account

V. Investment expenses

1. Costs of property maintenance

2. Other investment charges
3
. Loss on revaluation of investments

4. Losses on the realization of investments

VI. Unrealized losses on investments

VII. Net investment income after including costs transferred to the technical account of life insurance

VIII. Other operating income

IX. Other operating expenses

X. Profit (loss) from operations

XI. Extraordinary gains

XII. Extraordinary losses

XIII. Profit (loss)

XIV. Income tax

XV. Other obligatory decrease of profit (loss)

XVI. Profit (loss)

Statement of changes in equity

I. Equity at the beginning of the period (BO)

- Adjustments of fundamental errors

Ia Equity at beginning of period (opening balance), after adjustments

1. Share capital at beginning of period

1.1. Changes in share capital

A) increase (due to)

- Issue of shares

-
...
B) decrease (due to)

- Redemption of shares

-
...
1.2. Share capital at the end of the period

2. (Repealed)
3
. (Repealed)

4. Supplementary capital at the beginning of the period

4.1. Changes in supplementary capital

A) increase (due to)

- Issue of shares above the nominal value

- Distribution of profit (statutory)

- Distribution of profit (above the statutory minimum value)

-
...
B) decrease (due to)

- Loss coverage

-
...
4.2. Supplementary capital at the end of the period

5. Revaluation reserve at beginning of period

5.1. Changes in revaluation reserve

A) increase (due to)

-
...
B) decrease (due to)

- Disposal of fixed assets

-
...
5.2. Revaluation reserve at end of period

6. Other capital reserves at beginning of period

6.1. Changes in other reserves

A) increase (due to)

-
...
B) decrease (due to)

-
...

6.2. Other capital reserves at end of period

7. Profit (loss) brought forward at beginning of period

7.1. Profit from previous years at the beginning of the period

- Adjustments of fundamental errors

7.2. Profit from previous years at the beginning of the period, after adjustments

A) increase (due to)

- Distribution of profit from previous years

-
...
B) decrease (due to)

-
...
7.3. Profit from previous years at the end of the period

7.4. Loss from previous years at the beginning of the period

- Adjustments of fundamental errors

7.5. Loss brought forward at beginning of period, after adjustments

A) increase (due to)

- Transfer of losses from previous years to cover

-
...
B) decrease (due to)

7.6. Loss from previous years at the end of the period

7.7. Profit (loss) from previous years at the end of the period

8. The net result

A) net profit

B) net loss

C) deductions from profit

II. Shareholders' equity at end of period (BZ)

III. Equity including proposed profit distribution (loss coverage)
Cash flow


(Direct method)

A. Cash flows from operating activities

I. Proceeds

1. Receipts from direct activities and reinsurance accepted

1.1. Proceeds from gross premiums

1.2. Proceeds from recourses, recoveries and phrases compensation

1.3. Other proceeds on direct activities

2. Outward reinsurance proceeds

2.1. Proceeds from reinsurers share in claims

2.2. Proceeds from reinsurance commissions and profit participation reinsurers

2.3. Other proceeds from outward reinsurance
3
. Receipts from other operating activities

3.1. Proceeds from activities of the emergency

3.2. Disposal of intangible and tangible fixed assets other than investments

3.3. Other income

II. expenses

1. Expenses for direct activities and reinsurance

1.1. Returns gross premiums

1.2. Compensation and benefits paid gross

1.3. Expenses for acquisition

1.4. Expenditure of an administrative nature

1.5. Expenses for claims settlement and recourse collection

1.6. Paid bonuses and shares in profits from reinsurance

1.7. Other expenses on direct activities and reinsurance accepted

2. Expenses for outward reinsurance

2.1. Premiums paid for reinsurance

2.2. Other expenses of outward reinsurance
3
. Expenses on other operating activities

3.1. Expenses resulting from activities of the emergency

3.2. Acquisition of intangible and tangible fixed assets other than investments

3.3. Other operating expenses

III. Net cash flows from operating activities (I-II)

B. Cash flows from investing activities

I. Proceeds

1. Sale of real estate

2. The sale of shares in subsidiaries
3
. The sale of shares in other entities, units and investment certificates in investment funds

4. Implementation of debt securities issued by subsidiaries and repayment of loans granted to these individuals

5. Implementation of debt securities issued by other entities

6. Liquidation of term deposits in credit institutions

7. Implementation of other investments

8. Proceeds from property

9. Interest received

10. Dividends received

11. Other proceeds from investment

II. expenses

1. Acquisition of real estate

2. Acquisition of shares in subsidiaries
3
. The acquisition of shares in other entities and participation units and investment certificates in investment funds

4. Purchase of debt securities issued by subsidiaries and loans granted to those entities

5. Purchase of debt securities issued by other entities

6. Acquisition of term deposits in credit institutions

7. Purchase of other investments

8. Expenditure on property maintenance

9. Other expenses on deposits

III. Net cash flows from investing activities (I-II)

C. Cash flows from financing activities

I. Proceeds

1. Net proceeds from issue of shares and additional capital

2. Credits, loans and debt securities issued
3
. Other financial proceeds

II. expenses

1. dividends

2. Other than the payment of dividends, share expenses profit

3
. Purchase of own shares

4. Repayment of loans, borrowings and redemption of debt securities

5. Interest on loans, borrowings and debt securities issued

6. Other financial expenses

III. Net cash flows from financing activities (I-II)

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

E. Balance sheet change in cash, including:

- Change in cash due to exchange differences

F. Cash and cash equivalents at beginning of period

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

- Restricted cash

Additional information and explanations

Include the scope of the information specified in the regulations issued pursuant to art. 81 paragraph. 2 Section 6 of the Act.

Appendix 4. [SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR UNITS MICRO]

Appendix 4

SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR UNITS MICRO

General information:

1) firm, registered office and address or place of residence and address and the number of the relevant court register or records

2) an indication of the duration of the entity, if limited,

3) an indication of the period covered by the financial statements,

4) indication of the accounting principles prescribed for individuals micro detailing some simplifications

5) whether the financial statements have been prepared on the assumption that the entity in the foreseeable future and that there are no circumstances indicating a threat to the continuation of its business,

6) discussion of the adopted accounting principles (policy), including methods of valuation of assets and liabilities (including depreciation), financial result and the method of preparation of the financial statements to the extent to which the law leaves the individual right to choose.
Balance

Assets


A. Fixed assets, including fixed assets

B. Current assets, including:

-
Stocks
- Short-term receivables

C. Called up share capital (fund)

D. Shares (stocks)
Total assets

Liabilities


A. Share capital (fund), including:

- Capital (fund)

- (Repealed)

B. Liabilities and provisions for liabilities, including:

- Provisions for liabilities

- Liabilities due to loans and borrowings

Total liabilities

Supplementary information to the balance sheet:

1) the amount of any financial commitments, including those under debt financial instruments and guarantees or contingent liabilities not included in the balance sheet, the nature and form of debt secured by collateral; any commitments concerning pensions and affiliated or associated undertakings shall be disclosed separately

2) the amount of advances and credits granted to the members of the administrative, management and supervisory bodies, with an indication of the interest rates, main conditions and any amounts repaid, written off or depreciated, as well as commitments entered into on their behalf by way of guarantees of any kind, with an indication of the amount total for each category

3) of shares (shares) of their own, including:

A) the reason for the acquisition of shares (stocks) made in the financial year

B) the number and nominal value of purchased and sold in the fiscal year of shares (shares) in the absence of a nominal value, their book value, as well as part of the share capital that these shares (shares) represent

C) in the case of acquisition or disposal for, the equivalent of these shares (shares)

D) the number and nominal value or, in the absence of a nominal value, the book value of all shares (shares) acquired and retained, as well as part of the share capital that these shares (shares) represent.

Profit and loss

A. Revenues core operations and equivalents, including change in the balance of products (increase - positive value, decrease - negative value)

B. Operating costs:

I. depreciation

II. Materials and energy

III. Salaries, social security and other benefits

IV. Other costs

C. Other revenues and profits, including the revaluation of assets

D. Other expenses and losses, including the revaluation of assets

E. Income tax

F. Net profit / loss (A-B-C-D-E)

(For micro entities referred to in Art. 3 paragraph. 1a, point 1, 3 and 4 and paragraphs. 1b Act)

And

G. Net profit Total (A + B-C-D-E), including:

I. Excess of revenues over costs (positive value)


II. The excess of expenses over income (negative value)

(For micro entities referred to in Art. 3 paragraph. 1a, point 2 of the Act).

Appendix 5. [SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR SMALL UNITS BENEFITING FROM simplifications RELATING TO THE FINANCIAL STATEMENTS]

Appendix 5

SCOPE information disclosed in the financial statements REFERRED TO IN ART. 45 LAW FOR SMALL UNITS BENEFITING FROM simplifications RELATING TO THE FINANCIAL STATEMENTS

Introduction to the financial statements

Includes in particular:

1) the business name, registered office and address or place of residence and address and the number of the relevant court register or records;

2) an indication of the duration of the entity, if limited;

3) indication of the period covered by the financial statements;

4) indication of the simplifications provided for small units;

5) whether the financial statements have been prepared on the assumption that the entity in the foreseeable future and that there are no circumstances indicating a threat to the continuation of its business;

6) discussion of the adopted accounting principles (policy), including methods of valuation of assets and liabilities (including depreciation), to determine the financial result and the method of preparation of the financial statements to the extent to which the law leaves the individual right to choose.
Balance

Assets


A. Fixed assets

I. Intangible assets

II. Tangible fixed assets, including:

- Fixed

- Fixed assets under construction

III. Long-term receivables

IV. Long-term investments, including:

-
Estate
- Long-term financial assets

V. Long-term prepayments

B. Current assets

I. inventories

II. Short-term receivables, including:

A) in respect of supplies and services, including:

- 12 months

- Over 12 months

III. Short-term investments, including:

A) Short-term financial assets, including:

- Cash in hand and at bank

IV. Short-term prepayments

C. Called up share capital (fund)

D. Shares (stocks)
Total assets

Liabilities


A. Share capital (fund)

I. Share capital (fund)

II. Share capital (fund), including:

- Surplus sales value (issue value) over the nominal value of shares (shares)

III. Share capital (fund) from revaluation, including:

- Revaluation at fair value

IV. Other capital (funds)

V. Profit (loss) from previous years

VI. Profit (loss)

VII. Deductions from net profit during the financial year (negative value)

B. Liabilities and provisions for liabilities

I. Provisions for liabilities, including:

- Provision for retirement benefits and similar

II. Long-term liabilities, including:

- Credits and loans

III. Short-term liabilities, including:

A) loans and advances

B) in respect of supplies and services, including:

- 12 months

- Over 12 months

C) special funds

IV. Accruals and

Total liabilities

Profit and loss

(Calculation variant)

A. Net revenues from sales of products, goods and materials

B. Cost of products, goods and materials

C. Cost of sales

D. General and administrative expenses

E. Profit (loss) on sales (A-B-C-D)

F. Other operating income, including:

- Revaluation of non-financial assets

G. Other operating expenses, including:

- Revaluation of non-financial assets

H. Financial income, including:

I. Dividends and share in profits of entities in which the Company holds equity interests, including:

- From related entities in which the Company holds equity interests

II. Interest, including:

- From affiliates

III. Profit from expenditure on financial assets, including:

- In affiliates

IV. Revaluation of financial assets

I. Financial expenses, including:

I. Interest, including:

- Related parties

II. The loss due to the outflow of financial assets, including:

- In affiliates

III. Revaluation of financial assets

J. Profit (loss) before tax (E + F + G-H-I)

K. Income tax

L. Net profit (loss) (J-K)

(Comparative variant)

A. Net revenues from sales and equivalent

I. Net revenues from sales


II. Change (increase - positive value, decrease - negative value)

III. Cost of manufacturing products for own needs

B. Operating expenses

I. depreciation

II. Materials and energy

III. External services

IV. Salaries

V. Social security and other benefits, including:

-
Retirement
VI. Other costs, including:

- The value of goods and materials

C. Profit (loss) on sales (A-B)

D. Other operating income, including:

- Revaluation of non-financial assets

E. Other operating expenses, including:

- Revaluation of non-financial assets

F. Financial income, including:

I. Dividends and share in profits of entities in which the Company holds equity interests, including:

- From related entities in which the Company holds equity interests

II. Interest, including:

- From affiliates

III. Profit from expenditure on financial assets, including:

- In affiliates

IV. Revaluation of financial assets

G. Financial expenses, including:

I. Interest, including:

- Related parties

II. The loss due to the outflow of financial assets, including:

- In affiliates

III. Revaluation of financial assets

H. Profit (loss) (C + D + E-F-G)

I. Income tax

J. Net profit (loss) (H-I)

Additional information and explanations

Include in particular:

1) a detailed scope of changes in the value of groups of fixed assets, intangible assets and long-term investments, including the status of these assets at the beginning of the financial year, increase and decrease due to: revaluation, acquisition, disposal, internal displacement and the final state, and for amortized assets - like representation of states and titles change existing depreciation or amortization;

2) the amount made during the financial year write-downs of fixed assets separately for long-term non-financial assets and financial assets;

3) the amount of goodwill and an explanation of its write-off period referred to in Article. 44b paragraph. 10;

4) where the financial instruments or assets other than financial instruments are measured at fair value:

A) the significant assumptions used to determine fair value, where the data used to determine that value does not come from an active market,

B) separately for long-term and short-term financial instruments or assets other than financial instruments - fair value shown in the balance sheet, as well as the appropriate revaluation effects affecting the profit or loss or recognized in equity (fund) from revaluation during the reporting period, || |
C) separately for derivative financial instruments shown as current financial assets or liabilities - information on the scope and nature of the instruments, including significant conditions that may affect the amount, timing and certainty of future cash flows,

D) a table of changes in equity (fund) from revaluation includes the state capital (fund) at the beginning and end of the reporting period and the increases and decreases during the financial year;

5) the amount of prepayments representing the difference between the value received financial assets and the obligation to pay for them;

6) distribution of long-term liabilities according to the balance sheet items remaining from the balance sheet, the expected agreement, the maturity of over 5 years, as well as the total amount of liabilities secured by the assets of the undertaking and the nature and form of the security;

7) where the asset or liability is recognized in more than one item of the balance sheet, the relationship between these positions; This applies in particular the division of assets and liabilities on the part of the long and short term;

8) the total amount of contingent liabilities, including those granted by the guarantees and warranties, including bills of exchange, are not included in the balance sheet, indicating the obligations secured by the assets of the entity and the nature and form of these safeguards; must be shown separately information about contingent liabilities for pensions and similar benefits, and to related parties or associates;

9) The cost of fixed assets under construction, including interest and foreign exchange differences, which increased the cost of fixed assets under construction in the year;


10) interest and foreign exchange differences, which increased the purchase price of goods or the cost of sales in the year;

11) the amount and nature of individual items of income or expense of extraordinary value or which were incidentally;

12) information on the average employment in the financial year;

13) the amount of advances and loans granted to members of management, supervisory and administrative units, with an indication of their main conditions, the interest rate and any amounts repaid, written off or depreciated, as well as commitments entered into on their behalf by way of guarantees and warranties of any kind, with an indication of the amount of the total for each category;

14) information about significant events that occurred after the balance sheet date and were not included in the financial statements and their impact on the financial position and the financial result;

15) presentation made in the fiscal year changes in accounting principles (policy) if they have a significant impact on the financial position and financial result and the presentation of changes in the method of preparation of the financial statements including its causes;

16) numerical data, together with an explanation, ensuring comparability of the financial statements for the year preceding the report for the year;

17) the name and registered office of the entity produces consolidated financial statements for the lowest level of the group, which consists of the company as a subsidiary;

18) when the entity does not prepare a small report on the activities in accordance with Article. 49 paragraph. 5 of the Act further provides information on the shares (shares) own:

A) the reason for the acquisition of shares (stocks) made in the financial year

B) the number and nominal value of purchased and sold in the fiscal year of shares (shares) in the absence of a nominal value, their book value, as well as part of the share capital that these shares (shares) represent

C) in the case of acquisition or disposal for, the equivalent of these shares (shares)

D) the number and nominal value or, in the absence of a nominal value, the book value of all shares (shares) acquired and retained, as well as part of the share capital that these shares (shares) represent.

[1] Regulation repealed pursuant to art. 631 Section 1 of the Act of 15 September 2000. - Commercial Companies Code (Dz. U. No. 94, item. 1037), which entered into force on 1 January 2001.

[2] The Act was repealed pursuant to art. 193 of the Act of August 29, 1997. - Banking Law (Dz. U. No 140, item. 939), which entered into force on 1 January 1998.

[3] The Act was repealed pursuant to art. 74 of the Act of 30 August 1996. Commercialization and privatization of state-owned enterprises (Dz. U. No. 118, pos. 561 and No. 156, item. 775), which entered into force on 8 April 1997.

[4] The Act was repealed pursuant to art. 256 of the Act of 22 May 2003. Insurance Activity (Dz. U. No 124, item. 1151), which entered into force on 1 January 2004.

[5] The Act was repealed pursuant to art. 276 Section 2 of the Act of 27 July 2005. - Law on Higher Education (Dz. U. No. 164, item. 1365), which entered into force on 1 September 2005.

[6] The Act was repealed pursuant to art. 191 of the Act of 21 August 1997. - Law on Public Trading of Securities (Dz. U. No. 118, pos. 754), which entered into force on 4 January 1998.

[7] The Act was repealed pursuant to art. 220 Section 1 of the Act of 15 April 2011. On medical activity (Dz. U. No 112, item. 654), which entered into force on 1 July 2011.

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