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Annual report of the Bank Guarantee Fund
2020
10.3 Rules of preparing the summarised
financial statements
10.4 Accounting principles
The summarised financial statements, which comprise the balance sheet as of 31 December 2020 and the profit and loss
account for 2020, have been prepared on the basis of the audited annual financial statements of the Bank Guarantee Fund
drawn up for the financial year ended 31 December 2020. In addition, they include comparative figures for the previous
financial year ended 31 December 2019.
The annual financial statements of the Bank Guarantee Fund for the financial year from 1 January to 31 December 2020
have been prepared in accordance with the requirements of the Regulation of the Minister of Finance of 9 December
2016 on the specific accounting principles of the Bank Guarantee Fund (Journal of Laws 2016, item 2115, as amended),
the Accounting Act of 29 September 1994 (Journal of Laws 2019, item 351, as amended), the executive regulations issued
thereunder and other applicable laws.
The summarised financial statements have been prepared on the basis of the criteria developed by way of following the
current practice applied by the Fund in the preparation of the summarised financial statements. These criteria include,
in particular:
consistency of data between the Fund’s annual financial statements and the summarised financial statements;
an assessment of whether the summarised financial statements contain the necessary information and whether they
are at an appropriate level of aggregation which does not mislead the recipient of the summarised financial statements.
Pursuant to the accounting principles applicable to the Bank Guarantee Fund, the following methods of measuring assets
as well as equity and liabilities, and calculating revenues and expenses have been applied:
Debt securities, i.e. treasury bonds, treasury bills and money bills of the National Bank of Poland (NBP), as well
as financial assets and liabilities arising from buy-sell-back and sell-buy-back transactions are measured at the adjusted
acquisition price, taking into account the effective interest rate, and the effects of such measurements are charged
to, as appropriate, revenues or costs of financial transactions. Debt securities are recognised and excluded from the
books of account as of the transaction settlement day. Outflows of securities are measured at prices of assets acquired
at the earliest.
Non-listed shares are valued at the acquisition price, taking into account permanent impairment.
Loans granted are measured at the adjusted acquisition price, taking into account the effective interest rate and write-
downs. In order to determine write-downs on receivables other than arising from loans granted from the cooperative
banks’ resolution fund, the Fund applies, as appropriate, the provisions of the Regulation of the Minister of Finance
of 16 December 2008 on the rules of establishing provisions for risk related to the activity of banks (Journal of Laws
of 2019, item 520, as amended). Receivables of the Fund arising from loans granted from the cooperative banks’
resolution fund are classified under: regular or lost. Write-downs on lost receivables are calculated as of the balance
sheet date, in the amount of 100% of the value of such receivables. With regard to the rules of classifying receivables
Contents
Annual report of the Bank Guarantee Fund
2020
10.3 Rules of preparing the summarised
financial statements
10.4 Accounting principles
The summarised financial statements, which comprise the balance sheet as of 31 December 2020 and the profit and loss
account for 2020, have been prepared on the basis of the audited annual financial statements of the Bank Guarantee Fund
drawn up for the financial year ended 31 December 2020. In addition, they include comparative figures for the previous
financial year ended 31 December 2019.
The annual financial statements of the Bank Guarantee Fund for the financial year from 1 January to 31 December 2020
have been prepared in accordance with the requirements of the Regulation of the Minister of Finance of 9 December
2016 on the specific accounting principles of the Bank Guarantee Fund (Journal of Laws 2016, item 2115, as amended),
the Accounting Act of 29 September 1994 (Journal of Laws 2019, item 351, as amended), the executive regulations issued
thereunder and other applicable laws.
The summarised financial statements have been prepared on the basis of the criteria developed by way of following the
current practice applied by the Fund in the preparation of the summarised financial statements. These criteria include,
in particular:
consistency of data between the Fund’s annual financial statements and the summarised financial statements;
an assessment of whether the summarised financial statements contain the necessary information and whether they
are at an appropriate level of aggregation which does not mislead the recipient of the summarised financial statements.
Pursuant to the accounting principles applicable to the Bank Guarantee Fund, the following methods of measuring assets
as well as equity and liabilities, and calculating revenues and expenses have been applied:
Debt securities, i.e. treasury bonds, treasury bills and money bills of the National Bank of Poland (NBP), as well
as financial assets and liabilities arising from buy-sell-back and sell-buy-back transactions are measured at the adjusted
acquisition price, taking into account the effective interest rate, and the effects of such measurements are charged
to, as appropriate, revenues or costs of financial transactions. Debt securities are recognised and excluded from the
books of account as of the transaction settlement day. Outflows of securities are measured at prices of assets acquired
at the earliest.
Non-listed shares are valued at the acquisition price, taking into account permanent impairment.
Loans granted are measured at the adjusted acquisition price, taking into account the effective interest rate and write-
downs. In order to determine write-downs on receivables other than arising from loans granted from the cooperative
banks’ resolution fund, the Fund applies, as appropriate, the provisions of the Regulation of the Minister of Finance
of 16 December 2008 on the rules of establishing provisions for risk related to the activity of banks (Journal of Laws
of 2019, item 520, as amended). Receivables of the Fund arising from loans granted from the cooperative banks’
resolution fund are classified under: regular or lost. Write-downs on lost receivables are calculated as of the balance
sheet date, in the amount of 100% of the value of such receivables. With regard to the rules of classifying receivables
Contents
