5.3 Explanation of differences between the 2016 annual consolidated financial statements and these consolidated financial statements
5.3.1. Purchase price allocation of the acquisition of Bank BPH’s Core Business
Due to the completion of the final purchase price allocation of the acquisition of Bank BPH’s Core Business, a retroactive restatement of data as at 31 December 2016 has been performed. More information on this purchase price allocation is presented in item 2.4.5.
5.3.2. Change in presentation of revenues earned by Money Makers TFI SA
In order to unify the presentation of revenues earned by mutual fund companies in the PZU Group, the revenues earned by Money Makers TFI SA (Alior Bank’s subsidiary) from other operating income to revenue from commissions and fees.
5.3.3. Change of presentation of interest income and expenses for derivative instruments
To ensure better reflection of the economic nature of the transactions in derivative instruments, the presentation of interest income and expenses has been changed for those instruments by netting interest income and expenses.
5.3.4. Change of presentation of Alior Bank’s IT costs in the consolidated profit and loss account
To unify the presentation of IT costs, the costs incurred by Alior Bank were transferred from other operating expenses to administrative expenses.
5.3.5. Change to presentation of receivables on account of deposits and guarantees.
To reflect better the economic character of receivables on account of deposits and guarantees paid, these receivables have been transferred from other assets to receivables.
5.3.6. Change to presentation of costs of services provided to banks
To reflect better the economic character of the costs incurred, some costs of services purchased by banks have been transferred from fees and commission expenses to administrative expenses.
5.3.7. Impact exerted by the differences on the consolidated financial statements
The following tables present the impact of the aforementioned changes on the individual items of the consolidated financial statements.
| Assets | 31 December 2016 (historical) | Adjustment | 31 December 2016 (restated) | 1 January 2016 (historical) | Adjustment | 1 January 2016 (restated) |
| Other assets | 871 | 7 1) (12) 2) | 866 | 813 | (12) 2) | 801 |
| Financial assets | 105,300 | (14) 1) | 105,286 | 89,229 | - | 89,229 |
| Available for sale | 11,635 | 17 1) | 11,652 | 7,745 | - | 7,745 |
| Loans | 54,365 | (31) 1) | 54,334 | 43,326 | - | 43,326 |
| Deferred tax assets | 624 | 9 1) | 633 | 369 | - | 369 |
| Receivables | 5,703 | (51) 1) 12 2) | 5,664 | 3,338 | 12 2) | 3,350 |
| Total assets | 125,345 | (49) 1) | 125,296 | 105,397 | - | 105,397 |
1) Change described in section 5.3.1.
2) Change described in section 5.3.5.
| Equity and liabilities | 31 December 2016 (historical) | Adjustment | 31 December 2016 (restated) | 1 January 2016 (historical) | Adjustment | 1 January 2016 (restated) |
| Equity | ||||||
| Equity attributable to equity holders of the Parent | 13,010 | (12) 1) | 12,998 | 12,924 | - | 12,924 |
| Retained earnings | 2,055 | (12) 1) | 2,043 | 2,696 | - | 2,696 |
| Net profit | 1,947 | (12) 1) | 1,935 | - | - | - |
| Non-controlling interest | 4,117 | (31) 1) | 4,086 | 2,194 | - | 2,194 |
| Total equity | 17,127 | (43) 1) | 17,084 | 15,118 | - | 15,118 |
| Other liabilities | 4,997 | (6) 1) | 4,991 | 3,570 | - | 3,570 |
| Total liabilities | 108,218 | (6) 1) | 108,212 | 90,279 | - | 90,279 |
| Total equity and liabilities | 125,345 | (49) 1) | 125,296 | 105,397 | - | 105,397 |
1) Change described in section 5.3.1.
| Consolidated profit and loss account | 1 January – 31 December 2016 (historical) | Adjustment | 1 January – 31 December 2016 (restated) |
| Revenue from commissions and fees | 808 | 9 1) | 817 |
| Net investment income | 4,165 | (54) 2) | 4,111 |
| Net movement in fair value of assets and liabilities measured at fair value | 357 | (22) 2) | 335 |
| Other operating income | 1,388 | (9) 1) (43) 3) | 1,336 |
| Fee and commission expense | (285) | 12 4) | (273) |
| Interest expense | (773) | 76 2) | (697) |
| Administrative expenses | (2,843) | (68) 5) (12) 4) | (2,923) |
| Other operating expenses | (2,128) | 68 5) | (2,060) |
| Operating profit | 3,034 | (43) 3) | 2,991 |
| Net profit | 2,417 | (43) 3) | 2,374 |
| - profit attributable to the equity holders of the Parent Company | 1,947 | (12) 3) | 1,935 |
| - profit (loss) attributed to holders of non-controlling interest | 470 | (31) 3) | 439 |
1) Change described in section 5.3.2.
2) Change described in section 5.3.3.
3) Change described in section 5.3.1.
4) Change described in section 5.3.6.
| Consolidated cash flow statement | 1 January – 31 December 2016 (historical) | Adjustment1) | 1 January – 31 December 2016 (restated) |
| Profit before tax | 3,031 | (43) | 2,988 |
| Movement in loan receivables from clients | (5,190) | 31 | (5,159) |
| Movement in receivables | (2,338) | 39 | (2,299) |
| Change in liabilities | 1,967 | (6) | 1,961 |
| Other adjustments | 3,163 | (21) | 3,142 |
| Net cash flows from operating activities | 4,237 | - | 4,237 |
1) Change described in section 5.3.1.
