Accounting policies
Other operating income and expenses comprise income and costs not directly related to banking activities. Other operating income mainly includes gains on sale of housing investments, sale or liquidation of non-current assets, intangible assets and foreclosed collateral, sale of shares in a subsidiary, legal damages, fines and penalties, income from lease/rental of properties. Other operating expenses mainly include losses on sale or liquidation of non-current assets, intangible assets and foreclosed collateral, and donations made.
Other operating income and expenses of the Group entities also include income from sale of finished goods, goods for resale and materials, and the corresponding costs of their production.
Income from construction services (real estate development activities) is recognized on a completed contract basis, which involves recognition of all costs related to the housing investments that are incurred during the period of construction as work-in-progress, and payments received on account of purchase of apartments – as deferred income.
Financial information
| OTHER OPERATING INCOME | 2017 | 2016 |
|---|---|---|
| net sales of products goods and services1 | 472 | 313 |
| proceeds from sale of subsidiaries | - | 77 |
| gains on sale or scrapping of property, plant and equipment, intangible assets and assets held for sale | 95 | 86 |
| damages, penalties and fines received | 22 | 80 |
| sundry income | 27 | 26 |
| recovery of receivables expired, forgiven or written off | 3 | 7 |
| other | 91 | 60 |
| Total | 710 | 649 |
1 Including income from the Neptun Park project completed in the second quarter of 2017 in the amount of PLN 36 million and from sale of properties in the amount of PLN 32 million.
| OTHER OPERATING EXPENSE | 2017 | 2016 |
|---|---|---|
| costs of products and services sold1 | (118) | (150) |
| losses on sale or scrapping of property, plant and equipment, intangible assets and assets held for sale | (21) | (33) |
| donations made | (23) | (31) |
| sundry expenses | (17) | (18) |
| other | (61) | (98) |
| Total | (240) | (330) |
1 Including the costs of the Neptun Park project completed in the second quarter in the amount of PLN 21 million