5.1. Basis of preparation of Consolidated Financial Statements
General information
The financial statements have been prepared in Polish zloty, and all data in the financial statements are presented in PLN million (PLN ‘000), unless indicated otherwise.
The financial statements have been prepared on a going concern basis on the assumption that the Group will continue its business operations substantially unchanged in scope for a period of at least one year from the balance sheet date.
The accounting principles as described below have been consistently applied for all the reporting periods. The principles have been applied consistently by all the Group entities.
The consolidated financial statements have been prepared on the historical cost basis, except for significant items of financial assets and liabilities, for which the measurement method is presented in Note 5.4.
The consolidated financial statements include the requirements of all the International Financial Reporting Standards and International Accounting Standards approved by the European Union and related interpretations. Changes in published standards and interpretations, which became effective on or after 1 January 2023, had no material impact on the Group’s financial statements.
The financial statements does not take into consideration interpretations and amendments to Standards, pending approval by the European Union or approved by the European Union but came into force or shall come into force after the balance sheet date (Note 4.2 and Note 4.3). In the Group’s opinion, amendments to Standards and interpretations will not have a material impact on the consolidated financial statements of the Group.
Comparability of financial data
In the consolidated financial statements of Bank Pekao S.A. Group for the year ended on 31 December 2023, the Group made the following changes to the accounting principles:
- change in the method of presenting cash in the statement of financial position
Loans and advances to banks with a maturity of up to 3 months, previously presented under the item ‘Loans and advances to banks’, are now presented under the item ‘Cash and cash equivalents’ (previously named ‘Cash and due from Central Bank’).
Those changes result from adapting the presentation to the position of the IFRS Interpretation Committee and the requirements of IAS 7 „Statement of Cash Flows”.
The above-mentioned changes in accounting principles made it necessary to restate the comparative data, but they did not affect the balance sheet total.
The impact of changes on the comparative data of the consolidated statement of financial positions is presented in the tables below.
- change in the method of presentation of interest income and expenses on hedging derivatives and costs related to cash turnover in the income statement
The Group recognized income and expenses from interest on hedging derivatives together with interest on hedged items.
The introduced change results from adapting the presentation to the provisions of IFRS 9 ‘Financial Instruments’.
Moreover, the Group changed the method of presenting costs related to cash turnover. These costs are currently presented in the item ‘Fee and commission expense’. Before the change, they were presented in the item ‘General administrative expenses and depreciation’.
The introduced change results from adaptation to the observed market practice in this respect and, in the Group’s opinion, better reflects the nature of these transactions by recognizing both the income and the cost related to cash turnover in net fee and commission income.
The changes in the accounting principles indicated above made it necessary to restate the comparative data, but they did not affect the level of the presented financial result.
The impact of changes on the comparative data of the consolidated income statement is presented in the table below.