5. Key accounting policies, key estimates and judgments
The consolidated financial statements have been prepared on the historical cost basis, except from remeasurements of investment property and some financial instruments, which are measured at fair value.
The preparation of consolidated financial statements in compliance with IFRS requires the PZU Management Board to make professional judgments, estimates and assumptions that affect the adopted accounting policies and the presented values of assets, liabilities, revenues and costs.
Such estimates and associated assumptions are based on historical experience and other factors which are considered reasonable in existing circumstances and their results provide grounds for making a professional judgment regarding the carrying amount of assets and liabilities that does not result directly from other sources.
In making judgments, estimates or assumptions, the PZU Management Board may, in significant matters, rely on the opinions of independent experts.
The actual value may differ from the estimated one. All judgments, estimates and related assumptions are revised on an ongoing basis. Their changes are recognized as described in section 0.
The key accounting policies, estimates and judgments used for the preparation of the consolidated financial statements are described below and in the individual notes as specified in the table below.
| Item of the profit and loss account | Note No. | Item of the statement of financial position | Note No. |
| Gross written premiums | 10 | Goodwill | 26 |
| Revenue from commissions and fees | 11 | Intangible assets | 27 |
| Net investment income | 12 | Deferred acquisition costs | 28 |
| Net result on realization and impairment losses on investments | 13 33.7 | Property, plant and equipment | 30 |
| Claims paid and movement in technical provisions | 16 | Investment property | 31 |
| Interest expense | 18 | Entities measured by the equity method | 32 |
| Acquisition expenses | 19 | Financial assets | 33 |
| Administrative expenses | 20 | Cash | 35 |
| Income tax | 23 | Assets held for sale | 36 |
| Equity attributable to equity holders of the Parent | 37 | ||
| Non-controlling interest | 2.3 | ||
| Technical provisions | 38 | ||
| Provisions for employee benefits | 39 | ||
| Other provisions | 40 | ||
| Deferred tax | 41 | ||
| Financial liabilities | 42 |
Section includes:
- 5.1 Changes in accounting policies and estimates, errors from previous years
- 5.2 Amendments to the applied IFRS
- 5.3 Explanation of differences between the 2016 annual consolidated financial statements and these consolidated financial statements
- 5.4 Consolidation rules
- 5.5 Measurement of transactions and balances denominated in foreign currencies and FX rates used
- 5.6 Purchase method
- 5.7 Classification of insurance contracts in accordance with IFRS 4
