3. Basis of preparation

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These consolidated financial statements (“consolidated financial statements”, “financial statements”) were prepared in accordance with the International Financial Reporting Standards (“IFRS”) endorsed by the European Union which were in effect as at December 31st 2013. Taking into account the ongoing process of implementing the IFRSs in the EU and the business conducted by the Group, as far as the accounting policies applied by the Group are concerned, there is no difference between the IFRS that became effective and the IFRSs endorsed by the EU for 2013, except for the new set of standards: IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements, IFRS 12 Disclosure of Interests in Other Entities, IAS 27 Separate Financial Statements, and IAS 28 Investments in Associates and Joint Ventures, which will be applied by the Group for annual periods beginning on after January 1st 2014.

The following new standards, amendments to the existing standards and interpretations which have been endorsed by the European Union (the “EU”) are effective in periods beginning after January 1st 2013:

  • IFRS 13 Fair Value Measurement (effective for annual periods beginning on or after January 1st 2013),
  • Amendments to IAS 1 Presentation of Financial Statements – Presentation of Items of Other Comprehensive Income (effective for annual periods beginning on or after July 1st 2012),
  • Amendments to IFRS 7 Financial Instruments: Disclosures: Offsetting Financial Assets and Financial Liabilities (effective for annual periods beginning on or after January 1st 2013),
  • Amendments to IAS 19 Employee Benefits (effective for annual periods beginning on or after January 1st 2013),
  • IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine (effective for annual periods beginning on or after January 1st 2013),
  • Amendments to IAS 12 Deferred Tax: Recovery of Underlying Assets (effective for annual periods beginning on or after January 1st 2012; in the EU effective for annual periods beginning on or after January 1st 2013),
  • Amendments to IFRS 1 First-Time Adoption of International Financial Reporting Standards: Government Loans (effective for annual periods beginning on or after January 1st 2013),
  • Amendments introduced as part of Improvements to IFRSs published in May 2012 (effective for annual periods beginning on or after January 1st 2013).

The Group verified these amendments and decided that they had no material impact on the accounting policies applied by the Group to prepare these consolidated financial statements. For information on the impact of amendments under IAS 19 Employee Benefits, see nocie 6.

The Parent's functional currency and the presentation currency of these consolidated financial statements is the Polish złoty. These consolidated financial statements were prepared in thousands of złoty and, unless indicated otherwise, all amounts are stated in thousands of złoty.