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Annual report of the Bank Guarantee Fund
2020
on account of loans granted from the cooperative banks’ resolution fund under the category of lost receivables,
determining the value of the security thereof and the basis for recognising write-downs on such receivables, the
Fund applies, as appropriate, the provisions of the indicated Regulation of the Minister of Finance on the rules
of establishing provisions for risk related to the activity of banks. When determining write-downs on loans, the Fund
takes into account the probability of them being written off by the Bank Guarantee Fund. Interest accrued on loans
is classified under interest revenues.
Receivables on account of the commitments to pay, as referred to in Article 303 of the BFG Act, are part of contributions
made by entities. These receivables are secured with securities. The maturity of these receivables is governed by the
provisions of the BFG Act in Articles 304 and 305. Receivables on account of commitments to pay are recognised
in the amount receivable, subject to the prudence principle. Receivables on account of commitments to pay increase
the value of the Fund’s own funds.
Receivables on account of the disbursement by the Bank Guarantee Fund of guaranteed funds from entities with
respect to which the guarantee condition has been fulfilled, as referred to in Article 2 (57) of the BFG Act, are subject
to a write-down of 100%.
Other receivables are disclosed in the amount receivable, taking into account any write-downs thereon.
Tangible assets and intangible assets are disclosed at the acquisition price or the cost of manufacturing, less accumulated
depreciation/amortisation and impairment losses, if any.
Tangible assets and intangible assets are depreciated/amortised using the straight-line method for the purpose
of spreading over time their initial value throughout the useful life of the assets. Depreciation/amortisation rates are
determined taking into account the economic useful life.
Prepayments/accruals are disclosed in the amount of costs allocated to future reporting periods.
Provisions are created for liabilities resulting from support granted to entities acquiring cooperative savings and credit
unions or banks and for employee benefits. Provisions for employee benefits, i.e. for jubilee awards, retirement and
disability pay as well as death benefits, are calculated on the basis of actuarial measurement. Provisions for support
of entities acquiring cooperative savings and credit unions are calculated with the use of financial data of entities that are
acquired, available as of the balance sheet date.
Accruals include accruals for unused leaves, for bonuses and annual prizes as well as other accruals of costs. Accruals
for bonuses and annual prizes are recognised in the amount of the bonuses and annual prizes due in the financial year.
Other accruals are determined in the amount of costs due for a given reporting period, not being a matured liability
as of the balance sheet date.
Other liabilities are measured in the amount payable.
The result on financial transactions includes the result on: treasury bonds, treasury bills, NBP money bills, debt securities
guaranteed by the State Treasury, and the result on buy-sell back, sell-buy back transactions as well as other revenues
on account of interest on funds collected in the bank account and on time deposits.
Time-barred claims on liabilities for guaranteed funds are recognised in the profit and loss account as other operating
revenues.
In 2020, there were no changes to the accounting policies of the Bank Guarantee Fund or to the manner of preparing the
annual financial statements, affecting the Annual Financial Statements of the Bank Guarantee Fund for the financial year
from 1 January to 31 December 2020.
Contents
Annual report of the Bank Guarantee Fund
2020
on account of loans granted from the cooperative banks’ resolution fund under the category of lost receivables,
determining the value of the security thereof and the basis for recognising write-downs on such receivables, the
Fund applies, as appropriate, the provisions of the indicated Regulation of the Minister of Finance on the rules
of establishing provisions for risk related to the activity of banks. When determining write-downs on loans, the Fund
takes into account the probability of them being written off by the Bank Guarantee Fund. Interest accrued on loans
is classified under interest revenues.
Receivables on account of the commitments to pay, as referred to in Article 303 of the BFG Act, are part of contributions
made by entities. These receivables are secured with securities. The maturity of these receivables is governed by the
provisions of the BFG Act in Articles 304 and 305. Receivables on account of commitments to pay are recognised
in the amount receivable, subject to the prudence principle. Receivables on account of commitments to pay increase
the value of the Fund’s own funds.
Receivables on account of the disbursement by the Bank Guarantee Fund of guaranteed funds from entities with
respect to which the guarantee condition has been fulfilled, as referred to in Article 2 (57) of the BFG Act, are subject
to a write-down of 100%.
Other receivables are disclosed in the amount receivable, taking into account any write-downs thereon.
Tangible assets and intangible assets are disclosed at the acquisition price or the cost of manufacturing, less accumulated
depreciation/amortisation and impairment losses, if any.
Tangible assets and intangible assets are depreciated/amortised using the straight-line method for the purpose
of spreading over time their initial value throughout the useful life of the assets. Depreciation/amortisation rates are
determined taking into account the economic useful life.
Prepayments/accruals are disclosed in the amount of costs allocated to future reporting periods.
Provisions are created for liabilities resulting from support granted to entities acquiring cooperative savings and credit
unions or banks and for employee benefits. Provisions for employee benefits, i.e. for jubilee awards, retirement and
disability pay as well as death benefits, are calculated on the basis of actuarial measurement. Provisions for support
of entities acquiring cooperative savings and credit unions are calculated with the use of financial data of entities that are
acquired, available as of the balance sheet date.
Accruals include accruals for unused leaves, for bonuses and annual prizes as well as other accruals of costs. Accruals
for bonuses and annual prizes are recognised in the amount of the bonuses and annual prizes due in the financial year.
Other accruals are determined in the amount of costs due for a given reporting period, not being a matured liability
as of the balance sheet date.
Other liabilities are measured in the amount payable.
The result on financial transactions includes the result on: treasury bonds, treasury bills, NBP money bills, debt securities
guaranteed by the State Treasury, and the result on buy-sell back, sell-buy back transactions as well as other revenues
on account of interest on funds collected in the bank account and on time deposits.
Time-barred claims on liabilities for guaranteed funds are recognised in the profit and loss account as other operating
revenues.
In 2020, there were no changes to the accounting policies of the Bank Guarantee Fund or to the manner of preparing the
annual financial statements, affecting the Annual Financial Statements of the Bank Guarantee Fund for the financial year
from 1 January to 31 December 2020.
Contents
