ACCOUNTING RULES
Other operating income and costs
Other operating income and costs are recognised in the financial statements in accordance with the prudence principle and commensurability principle.
| Year ended December 31, 2021 |
Year ended December 31, 2020 |
|
|---|---|---|
| NET OTHER OPERATING INCOME/(COSTS) | ||
| Measurement and exercise of derivatives, including: | 2,896 | 170 |
| – CO2 | 2,894 | 155 |
| – Coal | 2 | 15 |
| Effect of change in rehabilitation provision | 1,463 | (306) |
| (Creation)/reversal of other provisions | (352) | (21) |
| (Creation)/reversal of impairment losses on receivables | (83) | (105) |
| Penalties, fines and compensations received | 69 | 149 |
| Gain on sale of property, plant and equipment / intangible assets | 41 | 31 |
| Grants received | 32 | 34 |
| Surpluses / asset disclosures | 24 | 9 |
| Donations granted | (18) | (19) |
| Property, plant and equipment/intangible assets and other infrastructure received free-of-charge | 17 | 15 |
| Liquidation of property, plant and equipment/intangible assets | (14) | (8) |
| Damage / failure removal | (9) | (7) |
| Other | (9) | (8) |
| TOTAL NET OTHER OPERATING INCOME/(COSTS | 4,057 | (66) |
In order to optimise financial flows, the Group decided to changed its hedging strategy for CO2 emission allowances and the rolling of certain contracts concerning these allowances. As a result of this strategy, purchase contracts with delivery in December 2021, with a total volume of 19.6 million, were closed and replaced by contracts with delivery in the first quarter of 2022. The conclusion of opposite contracts caused the existing purchase contracts, with a total volume of 19,6 million, not to be used for the Group’s redemption purposes. In connection with the above, these contracts – and the opposite contracts – were measured at fair value in accordance with IFRS 9 Financial Instruments. As a result of these operations, the Group generated PLN 2,778 million in revenue resulting from the difference between the sale price for contracts with delivery in December 2021 and the historic purchase price for these contracts. At the same time, the provision for the cost of CO2 emissions for 2021 was updated, i.e. the purchase price of allowances resulting from the new contracts was taken into account. This action had a neutral impact on the financial results for 2021.