Equity constitutes capital and reserves created in accordance with the legal regulations.
The classification to particular components discussed below results from the Polish Commercial Companies Code, the Banking Law and the requirements of IAS 1.7, IAS 1.78.e, IAS 1.54.q-r and IAS 1.79.b.
Equity components of the subsidiaries, other than share capital, in a proportion equal to the interest in the subsidiary held by the parent company, are added to the respective equity components of the parent company. The Group’s equity includes only those parts of the equity of the subsidiaries which arose after the acquisition of shares by the parent company. In accordance with the legislation in force in Poland, only the equity of the parent company and the equity of specific subsidiaries, determined on the basis of stand-alone financial statements, are distributable.
- Share capital comprises solely the share capital of the parent company and is stated at nominal value in accordance with the Articles of Association and entry in the Register of Entrepreneurs.
- Supplementary capital is created according to the Articles of Association of Companies in the Group, from the appropriation of profits and from share premium less issue costs and is to cover the potential losses which might result from the Group’s activities.
- The general banking risk fund in PKO Bank Polski SA is created from profit after tax in accordance with the Banking Law, and it is to cover unidentified risks of the Bank’s operations.
- Other reserves are created from the appropriation of net profit. Other reserves are only intended to cover any potential balance-sheet losses.
- Non-controlling interests represent the part of capital in a subsidiary, which cannot be directly or indirectly assigned to the parent company.
- Other comprehensive income comprises the effects of valuation of available-for-sale financial assets, the effective part of cash flow hedges resulting from hedge accounting as well as actuarial gains and losses.
Deferred tax on those items is recognized in other comprehensive income. Moreover, the item includes the share of the parent company in total other comprehensive income of associates and joint ventures and foreign exchange differences on translation to Polish currency of the net result of the foreign operation at a rate constituting the arithmetic mean of foreign exchange rates for the currency as at the day ending each of the months in the financial year published by the National Bank of Poland.
|Share capital||1 250||1 250|
|Supplementary capital||27 374||24 491|
|General banking risk fund||1 070||1 070|
|Other reserves||3 645||3 607|
|Other comprehensive income||147||(467)|
|Share in other comprehensive income of associates and joint ventures||-||(1)|
|Available-for-sale financial assets||272||(347)|
|Cash flow hedges||(116)||(109)|
|Actuarial gains and losses;||(9)||(10)|
|Exchange differences on translating foreign operations||(257)||(221)|
|Net profit or loss for the year||3 104||2 874|
|Total||36 256||32 569|