Estimates and judgments
At the end of each reporting period the Group assesses whether there are any indications of impairment of any non-financial non-current assets, right-of-use assets (or cash-generating units).
If any indications occur and annually in the case of intangible assets which are not amortized, as well as intangible assets not yet placed in service and goodwill, the Bank estimates the recoverable amount being the higher of the fair value less costs to sell or the value in use of a non-current asset (or a cash-generating unit), and, if the carrying amount of an asset exceeds its recoverable amount, the Group recognizes an impairment loss in the income statement. In order to estimate these amounts it is necessary to adopt assumptions concerning, among other things, the projected future cash flows that the Group may obtain from further use or sale of a given non-current asset (or a cash-generating unit). Adopting different assumptions concerning the valuation of future cash flows could affect the carrying amount of certain non-current assets.
Financial information
| NET IMPAIRMENT OF NON-FINANCIAL ASSETS | 2023 | 2022 |
|---|---|---|
| Property, plant and equipment1 | (41) | (3) |
| Assets held for sale | (1) | – |
| Intangible assets2 | (1) | (21) |
| Investments in associates and joint ventures | (11) | – |
| Other non-financial assets, including inventories3 | (54) | (39) |
| Total | (108) | (63) |
2 the Group recognised impairment of intangible assets – customer relationships in the amount of PLN 1 million (PLN 21 million in 2022)
3 Other non-financial assets include, among others, allowances for customer-related costs recognised on customer receivables in the amount of PLN 32 million (in 2022 - PLN 21 million) and allowances for shortages and damages and other receivables in the amount of PLN 20 million (in 2022 - PLN 21 million).
| CHANGE IN ACCUMULATED IMPAIRMENT LOSSES ON NON-FINANCIAL ASSETS | Opening balance | Impairment of non-financial assets | Other | Closing balance |
|---|---|---|---|---|
| 2023 | ||||
| Property, plant and equipment under operating lease | (3) | – | – | (3) |
| Property, plant and equipment | (102) | (41) | 8 | (135) |
| Non-current assets held for sale | (1) | (1) | 2 | – |
| Intangible assets | (382) | (1) | 1 | (382) |
| Investments in associates and joint ventures | (264) | (11) | – | (275) |
| Other non-financial assets, including inventories | (337) | (54) | 33 | (358) |
| Total | (1,089) | (108) | 44 | (1,153) |
| CHANGE IN ACCUMULATED IMPAIRMENT LOSSES ON NON-FINANCIAL ASSETS | Opening balance | Impairment of non-financial assets | Other | Closing balance |
|---|---|---|---|---|
| 2022 | ||||
| Property, plant and equipment under operating lease | (3) | – | (1) | (4) |
| Property, plant and equipment | (100) | (3) | 1 | (102) |
| Non-current assets held for sale | (1) | – | – | (1) |
| Intangible assets | (396) | (21) | 35 | (382) |
| Investments in associates and joint ventures | (264) | – | – | (264) |
| Other non-financial assets, including inventories | (354) | (39) | 56 | (337) |
| Total | (1,118) | (63) | 91 | (1,090) |