5.16.1. Share capital
Share capital is recognized in the amount specified in the parent entity’s by-laws and registered in the National Court Register.
5.16.2. Treasury shares
Acquired treasury shares and held by the consolidated entities within PZU Group are recognized at cost.
5.16.3. Supplementary capital
Under “Supplementary capitalthe following are recognised:
- effect of profit distribution, in accordance with the legal regulations in the country of the company’s domicile (in Poland, in accordance with the provisions of the Code of Commercial Companies (consolidated text: Journal of Laws of 2013, item 1030 as amended)) and the By-laws of PZU Group entities.
- capital resulting from sale of investment property which was earlier reclassified from property, plant and equipment in accordance with rules described in Note 5.9;
- difference between decrease of the value of non-controlling interest and fair value of consideration transferred.
5.16.4. Revaluation reserve
“Revaluation reserve” includes the effects of:
- measurement of financial assets classified as available for sale;
- measurement of the value of property to their fair value as at the date of their reclassification from property, plant and equipment to investment property;
including the corresponding change in the deferred tax assets and liabilities.
5.16.5. Actuarial gains and losses from remeasurements of defined benefit liabilities
This item includes actuarial profits and losses resulting from an increase or a decrease in the present value of defined benefit liabilities due to changes in actuarial assumptions and ex post adjustments thereto. The item includes profits and losses resulting from changes in demographic assumptions (such as mortality, employee turnover ratio) as well as financial assumptions (such as the discount rate or the projected pay growth rates).
5.16.6. Exchange differences from translation
The item includes exchange differences from translation of foreign operations’ financial data using the exchange rates and in accordance with principles described in Note 5.3.
5.16.7. Unappropriated result
“Unappropriated result” includes:
- previous year net profit which has not been distributed by the Annual General Meeting/ Shareholders’ Meeting;
- current year net profit/ loss;
- uncovered net loss.
Net profit distribution (or loss coverage) of the parent entity and PZU Group entities takes place only with respect to the net profit (loss) recognised in the company’s separate financial statements prepared according to the local GAAP effective in the country of residence of the given company.
5.16.8. Non-controlling interest
Non-controlling interest represents the part of a subsidiary’s equity which may not be attributed to the parent entity, whether directly or indirectly. Non-controlling interest is measured as the proportional share in identifiable net assets of the subsidiary.
The difference between the decrease of value of non-controlling interest and fair value of payment made is recognised in supplementary capital.